retargeting barometer 2013

Q2 2013

AUTHORS:

DAX HAMMAnCHief RevenUe &

STRATegy OffiCeR

BEn PLOMIOnvP, MARKeTing &

bUSineSS develOPMenT

800.385.0607 [email protected]

CHANGO RETARGETING BAROMETERWhat Marketers and Agencies Really Think of Retargeting

http://bit.ly/barometer4

CHAngO.COM © 2013 CHAngO. All RigHTS ReSeRved

TABlE Of CONTENTs

9 What Type of Measurement Attribution do you Use for Retargeting?

10 Where does your Retargeting budget Come from?

11 in The next 6 Months, is your Search Retargeting budget Most likely To increase, Stay The Same Or decrease?

12 in The next 6 Months, is your Retargeting budget Most likely To increase, Stay The Same Or decrease?

13 in The next 6 Months, is your Facebook Exchange Retargeting budget Most likely To increase, Stay The Same Or decrease?

14 Additional Resources

1 Methodology

2 executive Summary

3 How do you Typically engage with Retargeting vendors?

4 What Types of Online Advertising Activities do you Use in Addition to Retargeting?

5 What Types of Retargeting Tactics do you Use?

7 What Are your Site Retargeting goals?

8 What Are your Search Retargeting goals?

TOROnTO

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ATLAnTA

LOnDOn





CHANGO RETARGETING BAROMETER

CHAngO.COM 800-385-0607 | [email protected]

APRIL 2013 What marketers and agencies really think of retargeting

1

dax Hamman is the Chief Revenue Officer and Chief Strategy Officer at Chango and is based in San francisco. Prior, dax founded and led the global iCrossing media group, developing the concept of ‘performance display’, an innovative planning strategy that drove significant ROi from display advertising for some of the world’s largest and coolest brands.

ben is vP of Marketing and business development at Chango and is located in nyC. Prior to Chango, ben led the digital media practice at ge Capital and re-energized owned, paid and earned media initiatives across the company’s multiple businesses.

OURMETHODOlOGY

Chango’s biannual retargeting

barometer, Q2 2013 was fielded

to 51 media buyers, located in

the US, Canada and the UK.

The responders are Chango’s

brand and agency clients who

work in industries as diverse

as retail, financial services,

travel, auto, telecom, consumer

package goods and b2b. This

survey is part of Chango’s

programmatic marketing efforts

to analyze the industry’s key

trends and was fielded from

January to february 2013.

Survey respondent incentives

include gift certificates and

research reports.

DAx HAMMAN [email protected] @dAxHAMMAn

BEN PlOMION [email protected] @benPlOMiOn

http://www.chango.com

mailto:[email protected]


CHANGO RETARGETING BAROMETERAPRIL 2013 What marketers and agencies really think of retargeting

2

ExECUTIvE sUMMARY

Retargeting is growing up. That’s the unmistakable

takeaway of this year’s survey of marketers and

agencies. last year, 45% percent of survey

respondents had to form a new budget to

fund their retargeting efforts. This year, the

retargeting budgets were already in place. Only

17% percent of respondents needed to form a

budget from scratch.

And why shouldn’t budgeting for retargeting

be standard practice? After all, the other clear

takeaway from our survey is that retargeting is

an incredibly effective marketing tool. More than

half of respondents plan to spend more on Search

and Site Retargeting in the next six months. not a

single respondent plans to spend less.

Unlike the early days of retargeting, it’s not

all about Site Retargeting any more. Search

Retargeting continues to establish itself as a

remarkable tool for finding new customers,

which helps explain why all of our respondents

plan to either maintain or expand their Search

Retargeting budgets in the next year.

Meanwhile, the emergence of facebook’s fbx

ad exchange has introduced a new retargeting

category that is growing more quickly than

even facebook could have imagined. And

fbx isn’t about to stop growing. Some 60% of

respondents to our survey plan to spend more

on fbx retargeting in the next six months.

We might have been able to predict many

of these survey responses. After all, we work

with marketers and agencies on retargeting

campaigns every day. but there were plenty of

surprising results as well. While Site Retargeting

is first and foremost a tool for increasing

conversions from users who have visited an

advertiser’s site, 36% of respondents are also

using it for brand awareness. likewise, while

Search Retargeting is ultimately designed to

grow revenue by finding new customers, 68%

of respondents said they also use it for on-site

engagement.

And it’s not just the retargeting tools themselves

that are growing up. The once controversial

measurements of display campaigns no longer

seem very controversial. Our survey suggests

that the debate about view-through attribution

is finally coming to an end. The vast majority of

respondents (78%) use both view-through and

click-through to measure the success of their

retargeting campaigns.

We could go on and on about retargeting’s

emergence as a fundamental tool for online

marketers. but the numbers that follow do a

pretty good job of speaking for themselves.

Happy retargeting.

More than half of respondents plan

to spend more on Search and Site

Retargeting in the next six months.

not a single respondent plans to

spend less.






3

TYPICAL EnGAGEMEnT WITH RETARGETInG VEnDORS

42%58%

01 HOw DO YOU TYPICAllY ENGAGE wITH RETARGETING vENDORs?

Outsourcing your digital-Marketing Mix? not So fast

bit.ly/barometer1

A Manual for the brand-Agency-vendor Relationship

bit.ly/barometer2

fURTHER READING

As a vendor, we’ve had great experiences working

with both agencies and brands. nevertheless,

there is reason to think that direct relationships

between brands and vendors will become

increasingly common in the years ahead.

More than half of the respondents to our survey

said that they typically work directly with the

vendor for their retargeting campaigns, as opposed

to relying on a third-party, such as an agency.

diReCT RelATiOnSHiP WiTH vendOR

dOeS nOT APPly, i’M WiTH An AgenCy

Survey of 51 brand marketers and agencies, february 2013







4

02 wHAT TYPEs Of ONlINE ADvERTIsING TACTICs DO YOU UsE IN ADDITION TO RETARGETING?

not surprisingly, all marketers and agencies

that responded to our survey run display ad

campaigns. While traditional display is not

going to disappear anytime soon, a reliance on

traditional approaches may well decline in the

years ahead as behavioral strategies become

increasingly popular. After all, retargeting

works because it makes traditional display

more precise.

• Of respondents to our survey, 76% use both

retargeting and search engine marketing.

Search Retargeting capitalizes on the intent

revealed by online searches and can

therefore be extremely attractive to search

engine marketers.

• The number of respondents who run video

advertising (59%) and mobile advertising

(72%) hasn’t increased since we released our

barometer in Q3 2012.

• Social advertising is now being used by 67%

of respondents. We believe this is mainly due

to increased spending on the facebook Ad

exchange (fbx).

Will facebook excel on google’s Turf?

bit.ly/barometer3

Search Retargeting Arrives on facebook’s Advertising exchange

bit.ly/barometer4

fURTHER READING

“wE lIkE TO ExPERIMENT AND TRY NEw BOlD THINGs. fBx Is wHAT CAUGHT OUR ATTENTION RECENTlY. wE ARE sEEING BETTER RETURNs THAN wHAT wE HAD INITIAllY ExPECTED.”BRAnD MARKETER TRAVEL InDUSTRY

TYPES OF OnLInE ADVERTISInG TACTICS USED In ADDITIOn TO RETARGETInG

Survey of 51 brand marketers and agencies (multiple choice), february 2013

diSPlAy AdveRTiSing

10 20 30 40 50

SeARCH engine MARKeTing

videO

MObile

SOCiAl

lOCAl








5

03 wHAT TYPEs Of RETARGETING TACTICs DO YOU UsE?

The term “retargeting” is now used regularly

in our industry, but digital marketers often fail

to distinguish among the different techniques.

Outlined below are the multiple ways marketers

look at retargeting in their media plans,

• email retargeting was adopted early on by

retailers. it involves sending an email message

to consumers who did not complete the

checkout process.

• Site Retargeting is perhaps the best-known

type of retargeting. in its most basic form,

Site Retargeting serves a brand’s ads to users

who visited the brand’s website but failed to

convert. This basic approach has evolved into

more advanced types of retargeting, including

Programmatic Site Retargeting (PSR). PSR

is more precise than basic Site Retargeting

because it uses more data points to create a

sophisticated picture of a site visitor. Those

Retargeting for Retailers

bit.ly/barometer5

Why Programmatic Marketing is the future

bit.ly/barometer6

fURTHER READING

TYPES OF RETARGETInG TACTICS USED


eMAilReTARgeTing

10 20 30 40 50

SiTeReTARgeTing

SeARCHReTARgeTing

fACebOOK exCHAnge (fbx)

ReTARgeTing

CReATive ReTARgeTing







6

data points include pages viewed, type of

valued outcomes performed on sites (e.g. store

locator), referral data, shipping address, and

many others.

• Search Retargeting is the practice of targeting

users with display ads based on the keywords

they’ve searched for in google, yahoo! and

bing. Search Retargeting brings in entirely

new customers who have never visited your

site before.

• facebook exchange (fbx) retargeting is

a method that allows advertisers to serve

facebook ads to consumers based on their

previous behavior outside of facebook. Some

advertisers use fbx to retarget consumers

who have already visited their sites. Other

advertisers retarget prospects who have never

visited their sites but have searched for their

products or services on google, yahoo! and

bing. Though they may appear very similar to

users, fbx ads should not be confused with

facebook Marketplace ads. Marketplace ads

are purchased on a cost per click (CPC) basis,

and the advertisers target based on user

profile data found natively in facebook. fbx

ads, by contrast, are purchased in a second

priced dynamic CPM (dCPM) auction.

• Creative retargeting is a method that enables

advertisers to show an ad to visitors who were

previously exposed to or interacted with the

advertisers’ creative.

• Of the marketers and agencies that responded

to the survey, 25% use email retargeting.

The vast majority of them are retailers. not

surprisingly, almost every respondent uses Site

Retargeting, which remains the most common

approach to retargeting.

• More interestingly, 92% of respondents use

both Site and Search Retargeting. Those

findings are similar to last year’s results.

• The newest addition to the retargeting toolkit

is fbx retargeting, which is now used by 41%

of respondents. This is quite an achievement

considering that facebook only released

fbx in September 2012. A few months later,

in december 2012, Chango was the first

company to bring search data to fbx.

“wE AlwAYs ENCOURAGE ClIENTs TO RUN BOTH sITE AND sEARCH RETARGETING CAMPAIGNs. THEY TRUlY ARE COMPlEMENTARY TACTICs.”AGEnCY MID-WEST






7

04 wHAT ARE YOUR sITE RETARGETING GOAls?

Our survey found that 84% of marketers and

agencies use Site Retargeting to increase

revenue. That’s not surprising considering that

Site Retargeting is first and foremost a conversion

optimization tool.

interestingly, about a third of respondents also

use Site Retargeting to achieve broader goals.

Some 36% of respondents use Site Retargeting

to increase site engagement (one entertainment

client mentioned wanting to increase video views),

and 34% of respondents are aiming to raise

overall brand awareness.

The death of ‘Set it and forget it’

bit.ly/barometer7

fURTHER READING

34%36%84%inCReASe RevenUe

inCReASe bRAnd AWAReneSS

inCReASe On SiTe engAgeMenT

SITE RETARGETInG GOALS







8

05 wHAT ARE YOUR sEARCH RETARGETING GOAls?

We found that 92% of marketers and agencies

are using Search Retargeting to increase

revenue. This number reveals the real power

of Search Retargeting as a prospecting tool.

Whereas Site Retargeting is designed to

increase revenue from an existing audience,

Search Retargeting is an acquisition tool for

finding new customers. in fact, with respect

to acquisition, Search Retargeting offers

advantages even over search engine marketing.

Astute brands and agencies use Search

Retargeting to bid on competitors’ terms,

which is considerably harder to do with

search engine marketing. in our survey, 58%

of respondents included “Conquest customers

from competitors” as one of their goals.

More surprising was the number of respondents

who use Search Retargeting to meet branding

goals, such as raising brand awareness (50%)

and increasing on site engagement (68%). Those

findings are in sharp contrast with Site Retargeting,

which is primarily a direct response tool.

The Most frequently Asked Questions in Search Retargeting

bit.ly/barometer8

Understanding Search vs. Site Retargeting

bit.ly/barometer9

fURTHER READING

“wE UsE sEARCH RETARGETING TO DRIvE qUAlIfIED TRAffIC TO OUR AUTO BUIlDER TOOl.”BRAnD MARKETER AUTO

92%

68%

50%

58%

inCReASe RevenUe

inCReASe On SiTe

engAgeMenT

inCReASe bRAnd

AWAReneSS

COnQUeST CUSTOMeRS fROM

COMPeTiTORS

SEARCH RETARGETInG GOALS









9

06 wHAT TYPE Of MEAsUREMENT ATTRIBUTION DO YOU UsE fOR RETARGETING?

view-through attribution (commonly called vT)

seems to be a never-ending story, bouncing

around the industry as it collects more and more

myth, confusion and opinion.


agencies are using a combination of click-

through and view-through attribution. This

is a positive sign for the industry overall. it

demonstrates that marketers and agencies are

using more accurate measurements for their

display campaigns.

view-Through Attribution exposed: What ‘last Touch’ isn’t Telling you

bit.ly/ChangoWP2

wHITEPAPER REsOURCE

“ TRACkING vIEw-THRU CONvERsIONs Is A HElPfUl wAY TO TRUlY sEE THE vAlUE Of YOUR DIsPlAY AD CAMPAIGNs. THAT’s BECAUsE IT MEAsUREs THE CONvERsIONs wHERE A CUsTOMER sAw — BUT DIDN’T ClICk — A DIsPlAY AD BEfORE COMPlETING A CONvERsION.”BRAnD MARKETER RETAIL

22%78%CliCK-THROUgH And

vieW-THROUgHCliCK-THROUgH

Only

TYPE OF MEASUREMEnT ATTRIBUTIOn USED FOR RETARGETInG




http://bit.ly/ChangoWP2



10

07 wHERE DOEs YOUR RETARGETING BUDGET COME fROM?

Asked how they allocate their budgets for Search

Retargeting campaigns, 34% of respondents

revealed that they take money out of their

traditional display campaigns. This number

reveals the broader trend of media planners

looking for more out of their display dollars.

interestingly, 17% of the respondents said that they

had created a “new budget” for their retargeting

efforts. That number was 45% last year, indicating

that retargeting has become more mature as a

marketing tactic.

“RETARGETING Is BY fAR OUR BEsT DIsPlAY TACTIC. IT HAs A BUDGET ON ITs OwN, AlONGsIDE TRADITIONAl DIsPlAY AND sEM.”AGEnCY WEST COAST

Performance display for SeM Marketers

bit.ly/barometer10

fURTHER READING

WHERE RETARGETInG BUDGETS COME FROM

neW bUdgeT


5% 10% 15% 20% 25% 30% 35%

SeM bUdgeT

OTHeR diSPlAy CHAnnelS/

TACTiC

OTHeR Online MARKeTing

OTHeR Offline MARKeTing







11

47%53%inCReASe STAy THe SAMe

In THE nEXT 6 MOnTHS, IS YOUR SEARCH RETARGETInG BUDGET MOST LIKELY TO InCREASE, STAY THE SAME OR DECREASE?


08 IN THE NExT 6 MONTHs, Is YOUR sEARCH RETARGETING BUDGET MOsT lIkElY TO INCREAsE, sTAY THE sAME OR DECREAsE?


agencies intend to increase their Search

Retargeting budgets in the next six months.

The numbers speak well for themselves.

Marketers and agencies want to do more Search

Retargeting because Search Retargeting delivers

consistent results.

Search Retargeting: The Must-Have Media Tactic for Q4

bit.ly/barometer11

Why Smart Search Marketers Are Using Search Retargeting

bit.ly/barometer12

fURTHER READING







12

Redefining Retargeting for Retailers – bringing Search into the Mix

bit.ly/barometer13 46%54%

inCReASe STAy THe SAMe

In THE nEXT 6 MOnTHS, IS YOUR SITE RETARGETInG BUDGET MOST LIKELY TO InCREASE, STAY THE SAME OR DECREASE?


09 IN THE NExT 6 MONTHs, Is YOUR sITE RETARGETING BUDGET MOsT lIkElY TO INCREAsE, sTAY THE sAME OR DECREAsE?

Search Retargeting isn’t the only retargeting

technique that will become more common

next year. We found that 46% of marketers and

agencies intend to increase their Site Retargeting

budgets in the next six months. not a single

agency or marketer is planning to decrease his

or her Site Retargeting budget.

fURTHER READING







13

10 IN THE NExT 6 MONTHs, Is YOUR fBx RETARGETING BUDGET MOsT lIkElY TO INCREAsE, sTAY THE sAME OR DECREAsE?

to increase their retargeting budgets on fbx in the

next six months.

Retargeting on facebook exchange is relatively

new and has been received very well by marketers

and agencies. A solid majority (60%) of them intend

A briefing on the facebook exchange (fbx)

bit.ly/barometer14

fURTHER READING

“fBx Is RElATIvElY NEw TO Us BUT PERfORMs BETTER THAN MANY OTHER DIsPlAY TACTICs.”BRAnD MARKETER CPG

In THE nEXT 6 MOnTHS, IS YOUR FACEBOOK EXCHAnGE RETARGETInG BUDGET MOST LIKELY TO InCREASE, STAY THE SAME OR DECREASE?


2%38%60%inCReASe STAy THe SAMe deCReASe






14

ADDITIONAl REsOURCEs

Retargeting for Retailers exposed: driving More dollars bit.ly/ChangoWP01

The facebook exchange Handbook bit.ly/ChangoWPfbx

Why Creative Still Matters bit.ly/ChangoWebinar4

data Management Platform: foundation for Right-Time Marketing bit.ly/ChangoWebinar3

The fbx Opportunity: Search Meets Social bit.ly/ChangoWebinar2

Retargeting is not what you think bit.ly/ChangoWebinar1

view-Through Attribution exposed: What ‘last-Touch’ isn’t Telling you bit.ly/ChangoWP2

Search Retargeting barometer: Why Marketers Are Paying Attention bit.ly/ChangoWP3

Retargeting exposed: not Another Whitepaper About Retargeting bit.ly/changoWP4

The data Management Platform: foundation for Right-Time Customer engagement bit.ly/ChangoWP5

wHITEPAPERs & HANDBOOks wEBINARs

Search Retargeting to Conquest Competitor’s Customers bit.ly/barometer15

Marketers Turn to Search Retargeting for branding, direct Response goals bit.ly/barometer16

fURTHER READING




http://bit.ly/ChangoWPfbx

http://bit.ly/ChangoWebinar4









retargeting barometer 2013

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