Search to Display Remarketing

All eCommerce sales can be attributed to two types – Impulse and Intent driven.

• Impulse buying is more of direct marketing – combination of offers and deals driven by on-site marketing or direct marketing to existing consumers.
• Intent buying covers full AIDA cycle – Attention, Interest, Desire and Action; and can be categorized as a conscious purchase decision that spans over a period of time.

Usually Search Marketing Conversion Rate > Display Marketing Conversion Rate

Why so:

– Search Traffic comes with user-intent, user searching for product

– Display Traffic – click enticed more towards impulse decision, less towards intent

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Usual Difference:

– Display Marketing Conversion Rate is 4X-6X of Search Marketing
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Conversion by clicks:

– Average eCommerce service requires 100 visitors to convert into a customer (successful transaction)

– Search typically takes 50-65 visitors for one successful transaction

– Display will require about 250-390 visitors for one successful transaction

CTRs by Marketing Channels:

– Search Marketing – 1% to 2%

– Display Marketing – 0.1% to 0.2%

Costs per Transaction of Marketing Channels:

– Search Marketing: 10-15 INR per click = 500 INR to 975 INR

– Display Marketing: 4-8 INR per click = 1000 INR to 3120 INR

Now, introduction to Search ReMarketing: – Reaching out to highly-intent driven users who visited the eCommerce store via Search, but did not complete transaction.

Increase Search Marketing spends to expand to more high quality traffic by increasing span of keywords or by bidding higher on converting keywords.

Search Marketing: 12 INR to 20 INR = 600 INR to 1300 INR

Direct Display Marketing: 0 spends

Display Re-Marketing: 10 – 15 INR per click

Acquiring New Customers:

– Search Marketing = 600 INR to 1300 INR

– Out of 50 to 65 visitors – 1 successful transaction; 49 – 64 users drop-out.

Display ReMarketing to the dropped-out users;

– 49 – 64 Clicks: 490 INR to 960 INR

– 2-3 usual conversions

Total Conversion 3-4

Total Cost: 1090 INR to 2260 INR

Average Cost of Acquisition: 360 INR to 572 INR

• Do not treat Search and Display as separate channels to acquire customers
• Search remarketing through Display will reduce your cost of acquisitions by 25% to 65%
• Always look for cross-channel marketing opportunities to enhance RoI on Online Marketing