Tailoring your online ads to individual users is one of the most potent tools in modern advertising solutions. Not only does it encourage higher click through rates than your typical generic display advertising, but it also gives you ways to optimise your budget and spend your money to encourage purchases from your most important visitors. Here are a few ways that retargeting and RTB can optimize your ad spending:
1. Differentiate Bids by Product
With personalized retargeting, you can set bids for single views depending on the product. Margins for products sold online vary significantly, and ad budgets are largely determined by projected profits on sales. The higher profit on the horizon, the more ad spend it deserves. For example, if you project higher revenues on LCD TVs, and lower revenue on dryers, you can optimise your ad spend by setting higher bid prices for LCDs and lower bid prices on dryers.
2. Differentiate Bids by Visitor Priority
Bids via retargeting can also differentiate between visitor value to your site. Online shoppers are typically divided into three categories: (1) buyers – those who have made a purchase, (2) shoppers – those who abandoned a transaction, and (3) visitors – those who only browsed the store but didn’t add anything to their card. With retargeting, you can optimise by setting higher bids for ads displayed to buyers –users who have already past customers, and lower bids for those who expressed interest but have lower potential to convert into sales.
3. Direct Your Ads to Only The Right People
With personalized retargeting your ads will account for not only what a user has browsed, but also how often. Retargeting allows you to exclude users who have only expressed passing interest (e.g. one click) on the website and nothing more. This feature reduces the likelihood that an ad click was accidental, and allows the ad platform to not send erroneous ads that are likely uninteresting to the user. By offering ads to those who actually show a purchasing initiative, and filtering out those who do not, you can precisely drive your promotion activities to high-potential buyers and optimise sales potential.
