Cutting-edge technologies like machine learning and AI (Artificial Intelligence) have certainly been transformative for retailers in managing through wrenching industry trends. Yet there is a nagging problem: with thousands of marketing solutions and platforms available, it is extremely difficult to evaluate the right options.
This often means that the strategy is to use multiple platforms. Might as well have different approaches and have wider coverage, right?
Well, not necessarily. Having more than one solution can actually pose major problems for your online marketing efforts. This is particularly the case with retargeting solutions.
More is not always better
Ad fatigue: This is when users get tired – or even annoyed – by the high frequency of ads. The typical response is to ignore the ads. Although, some people will go as far as to use ad blockers. For an advertiser, the impact from ad fatigue can be quick, leading to pernicious effects like negative attitudes to the brand and lower sales – which can be lasting.
Keep in mind that retargeting vendors understand this problem. As a result, they will build specific systems to provide for optimal ad frequency. In other words, if you add another system into the mix, you will lose the benefits.
Unclear performance measurement: IBM CEO Ginni Rometty has noted that Big Data is the “world's natural resource for the next century.” While we are certainly headed in that direction, the complexities of data analytics can easily lead to the wrong outcomes.
This is certainly the risk with using different retargeting platforms. The fact is that, when a single user sees or clicks on both partner’s ads, it is extremely difficult to quantify the impact of each ad, in terms of driving sales. The bottom line: There is often inefficient budget allocations.
Wasted ad spend: This is perhaps the biggest problem. If you have two retargeting partners, then you are essentially bidding against yourself. Yes, it’s an odd situation and can cause a steep drop in the click-through rates because of the ad fatigue. To deal with this, you need to increase your CPC, and this inevitably leads to wasted ad spend.
Deciding on the best retargeting platform
When it comes to selecting a retargeting partner, there are certain must-haves like transparent pricing and one-to-one personalization. But if you want to take your marketing to the next level, a platform must provide some other key functions and benefits:
Understand customer behaviour across devices and platforms: For retailers, you need to make sure you cover all the important touch points. This does not mean just being on the web, social networks and mobile. A retargeting platform must go even deeper, such as with in-app functions. All this needs to be tied together tightly, in terms of engagement and tracking. It’s a delicate and complex process that requires sophisticated technologies.
Criteo
Think beyond retargeting. The goal should not be only about boosting conversions. There also needs to be a strategic focus. What are your main business objectives? What about branding? Perhaps you want to engage different audiences? Or you want to understand the shopping behaviors of your customers?
Drive efficiency and scale: It’s rare for a retargeting vendor to have both; the outcome is usually few quality leads or wasted marketing spend. But the optimum combination of efficiency and scale is when the true magic occurs. It’s when your marketing becomes a true driver for growth. This is when technology is no longer an expense; instead, it becomes a valuable investment.
Artificial Intelligence: Just about every retargeting vendor claims this capability. Yet it is probably more bombast than reality. AI goes well beyond just having fancy algorithms. To get the true value from this technology, there must be a massive dataset, which allows for real learning. A vendor should also provide references where the AI’s predicative abilities have been proven.
Post-Sale Support: It’s an all too common scenario: you spend lots of time and money implementing a retargeting system. The initial results are encouraging, but then the vendor moves on to the next customer and you are left to use the system on your own.
Make sure your vendor comes with many standout references, as well as strong word-of-mouth in the industry or on social media. If there are any signs that support is not a priority, then you need to just say “no.” When it comes to effective retargeting performance, self-service technology is simply not enough.
Why Criteo is the answer
At Criteo, we live by these principles. Every day we strive to enhance our platform, looking at what really makes a difference for our customers.
Our retargeting platform connects with any type of screen and leverages a massive dataset of 1.4 billion shoppers. And right from the founding of our company in 2005, we have been focused on machine learning, analytics and AI. The result is that our platform delivers ads to specific customers based on interests and intent, resulting in standout performance. All this is done on an impression-by-impression basis in real time, which optimizes the creative by the call-to-action, color, font-size and images (there are up to 17 trillion visual ad variations), and is backed up by a sophisticated bidding engine.
As a testament to our commitment to AI, we have recently established a lab, with a budget of $32 million over the next three years. We are innovating to develop new applications that are interpretable, transparent and user-centric.
It is no surprise that our platform consistently beats our peers. The average return on ad spend is 13X and up to 28% of purchases are products that were not previously viewed. Criteo has the ability to predict what items are likely to have the highest interest.
But don’t just take our word for it – 19,000 marketers across the world agree. They have seen the results and understand the power of focusing on what matters with retargeting.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.