HOW TO GET THE MOST

OUT OF RETARGETING

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Amar Sumal

Rocket Fuel

@rocketfuelinc

#SMX 13D

October 1, 2013

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Agenda

1 Challenges with Retargeting

2 Not all Customers are the Same

3 Don’t Settle

RETARGETING

CHALLENGES

Right Audience Ineffective Context

= No Impact

AUDIENCE RETARGETING IS NOT ENOUGH

PROBLEM: CONTEXT ALSO MATTERS & THE AUDIENCE ISN’T HOMOGENEOUS

Target users

RETARGETING BENEFITS FROM SKEWED LAST TOUCH

ATTRIBUTION MODELS

Online Media Budget

PARTNER

1

PARTNER

2

PARTNER

3

PARTNER

1

PARTNER

2

PARTNER

3

Other Targeting Tactics

80% Budget

Retargeting

20% Budget

Run CampaignDrive to Website

XBut Almost 100% of

Customers Don’t

Convert Right Away

Users fall into

retargeting pool

User converts and

all credit attributed to

retargeting partner

OVERSPENDING IN RETARGETING SABOTAGES LONG TERM

REVENUE GOALSSmarter Investment Mixes Generate a Much Greater ROI

High

High

Low

Advertising Investment ($)

Return

Original Mix

Smarter Mix

Scale Back

Retargeting

Budgets

Increase Other

Targeting Tactic

SpendingOther Targeting Tactics

Retargeting

$1MM $2MM $3MM $4MM $5MM

* Sample Results

MULTIPLE RETARGETING PARTNERS STEAL ROI AND

AD FREQUENCY SKYROCKETS

Partner A $3.01 3

Partner B $3.12 3

Partner C $3.44 4

Partner D $3.51 $3.51 3

13

Bid Paid Freq

UNDERSTANDING YOUR

AUDIENCE

0%

20%

40%

60%

80%

100%

120%

140%

0% 20% 40% 60% 80% 100%

Incr

em

en

tal I

mp

act

Proportion of Population Reached

Persuadables

Sure Things &

Lost Causes

Do Not

Disturb

“Whoo-Hoo!

I’m Kicking Butt

On My KPIs!”

“WTF,

Seriously?!?”

INTELLIGENT RETARGETINGDrive leads through prospect differentiation using act-alike modeling

Communication with high

LTV prospects through

purchase cycle

Aggressive communication and

messaging with highest value

prospects

Cautiously engage low value

prospects through purchase

cycle

Users visits client

website

Pixeled conversions

feed into model

Value of retargeting pool

assessed

$

Correlations among

features and positive

converters modeled

Effectively message and

deliver quick converters

INCREASE VALUE THROUGH PROSPECT DIFFERENTIATIONDynamic scoring and assessment of core retargeting pool

RETARGETING POOL

Efficiently

deliver quick

converters

Continuously

communicate with high

LTV prospects to move

through purchase cycle

Avoid or cautiously

engage low value

prospects to move

through purchase cycle

Aggressively message

highest value

prospects

INTELLIGENT RETARGETING Drive leads by finding additional prospects through actalike modeling

01

TRADITIONAL RETARGETING: Limited Scope With An Ineffective

Methodology

LAUNCH 02 LEARN 03 SCALE

find correlations between user

features and positive converter

signals

Siloed approach to targeting

restricts campaign’s ability to scale &

relies exclusively on lower funnel

prospects

Ignores prospects

outside of retargeting pool that

are highly likely to convert

No differentiation within retargeting

pool, grouping quick converters with

casual window shoppers within the same

pool

Assess value of core retargeting

pool, concentrating on the optimal

audience

Re-message to

expanded audience,

amplifying converter

pool while maintaining

performance

Users visit client

website

Pixeled individual

conversion actions feed

into campaign model

$

CLONE WHAT WORKS TO SCALE PROSPECTING

OPPORTUNITIES

Scale campaigns and engage with new

prospects by using the best audience

and contextual features that drive

incremental conversions.

TESTING NEW PARTNERS

Bakeoff Plan: Option 1

Segmenting the Retargeting Pool

Retargeting Pool

Implement rotational

pixel firing to create

non-overlapping

retargeting pools (i.e.

even numbered user

vs. odd numbered

user)

1

2 Track, measure and

analyze results

compared to baseline

conversions for each

vendor

Partner #1 Partner #2

Bakeoff Plan: Option 2

Vertically Partition Users Across the Entire Funnel

Awareness

Consideration

Favorability

Purchase Intent

Leads

Sales

Find New

Customers

Find New

CustomersVertical User

Partitioning

Track, measure and analyze

results between both partners

Partner #1Partner #2

Geo: East Coast

States Only

Geo: West Coast

States Only

1 Each partner targets specific non-overlapping

geographies with potentially different campaign

objectives

2 Track, measure and analyze results compared

to historical results while accounting for

seasonality

Bakeoff Plan: Option 3

Segment Across Geographies and Objectives

Partner #1

Partner #2

THANK YOUasumal@rocketfuel.com

http://www.slideshare.net/SearchMarketingExpo

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