The best time to pitch to a customer is when they already have your company or product in mind. That’s why retargeting is such a powerful tool. AdRoll’s graphic explains the concept quite simply but I imagine it takes quite a few well-trained digital elves to make it all work.
Customer visits your site, leave without buying, later sees an ad for your site, thinks “hmm. . . I really was very fond of that red one. . . “, clicks the ad, is whisked back to your site where they buy the item they left in the cart the first time around. Smooth like butter but is the return worth the cost? And how does Facebook fit into the plan?
AdRoll wanted the answers to those questions so they studied “800 million impressions from 215 AdRoll advertisers running retargeting campaigns on three channels: FBX (on desktop), WCA (on mobile), and web sources other than Facebook.” They then packed all of the results into a white paper that you can download for free.
The main takeaway: with mobile you get more for your money.
The CPM cost of News Feed ad impressions on mobile is 57% lower than News Feed impressions on desktop, and generate a 10% higher CTR. This results in a 61% lower CPC for ads in the News Feed on mobile compared to the News Feed on desktop.
Lower cost and higher clickthroughs on mobile? There’s nothing bad about that but I still wonder why?
The lower cost could be due to the fact that there still isn’t a lot of demand for mobile ads. eMarketer says mobile ad spend is growing but it won’t catch up to desktop spend until 2017.
The higher clickthrough rate is likely due to focus. When you’re on your computer and you see an ad in your Facebook News Feed, it’s surrounded by all kinds of other shiny, jiggly things. Look! A squirrel!
When you’re skimming your News Feed on your mobile phone that ad is just one of maybe three or four things in your line of vision. And chances are, those other things aren’t jumping and jiggling. I also think we pay more attention on mobile because the screen is smaller and because we’re touching the screen to scroll and click.
Think about it. You’re scrolling through your feed and now an ad for that hip shoe lace store you visited yesterday is right under your finger! 10% off if you click now. Tap and it’s done.
The Layered Look
Mobile is looking good but AdRoll isn’t suggesting you ditch all your desktop campaigns. Instead, go for the layered approach:
Much like News Feed on desktop, mobile is ideal for driving high click-through-rates and achieving downstream ROI goals. By adding mobile to an existing campaign of web and News Feed ads on desktop, our sample saw on average 29% more clicks.
As a complementary channel, News Feed on mobile adds an average of 3.8% incremental conversions to an existing retargeting mix of web and News Feed on desktop. We anticipate this to increase as advertisers expand beyond test budgets.
Conclusion: Facebook is turning into one powerful source for online marketers as long as you look beyond the freebie Facebook Page.