Research & Analysis Confirms 49% ROI Increase & 74% CTR Increase
Foreword: Results of Study
Dynamic video remarketing has proven to be an effective way of increasing return on investment (ROI), and click-through rates (CTR). Treepodia recently revealed the results of a year-long comprehensive study of their clients’ video retargeting campaigns, and the results are startling. The objective of the study was to evaluate specific key performance indicators (KPIs) on retargeting campaigns and video retargeting campaigns over 1 year. During the course of the study, millions of impressions were taken into account, and the net result was a significant uptick in both ROI and CTR.
The strongest returns on investment were evident in the jewelry & gifts industry. The overall percentages reflected a 100% increase in CTR and ROI. These results are in line with the general trends evident across all industries. Dynamic video retargeting has proven to be the most successful way of improving ROI and CTR, and customer loyalty. Based on the findings, dynamic video retargeting improved return on investment by 49%, and click-through rates by 74% across all industries. It is notable that YouTube pre-roll rates using dynamic video retargeting were 47% higher than generic remarketing.
Video Retargeting Costs Less and Converts More
A jewelry client opted to use Treepodia’s services to create an effective video remarketing campaign. The client typically spends on average $50,000 per month in static retargeting efforts. Based on the metrics, the average cost per conversion for that client was $336.40 across all campaigns. Once that client switched to Treepodia dynamic video remarketing, the total cost across all campaigns amounted to $114.57 per conversion. This represents an almost threefold decrease in the cost per conversion (from $336.40 to $114.57). This dramatic cost saving is money that could have been plowed back into the business for inventory, expansion, or as a capital cushion.
How this Jeweler Increased Annual Sales by Almost $7M
Based on the numbers, this jewelry client was losing approximately 290 sales per month, the equivalent of $580,000 in sales, given that the average ticket price of an item sold by the jeweler is $2000 ($2000 x 290 sales). When that figure is extrapolated over the course of 1 year, it translates into a grand total of $7 million in lost sales. Viewed from a different perspective, that business can increase its revenues and profits by almost $7 million by using Treepodia’s video retargeting services. The figure is calculated as follows: 290 sales at an average price of $2000 = $580,000 per month. There are 12 months in a year. 12 x $580,000 = $6.96 million in annual sales.
Optimizing AdWords Campaigns
Generally, it is possible to optimize an AdWords campaign by following these 5 golden rules:
- Maximize the effectiveness of your AdWords Campaigns across different device segments. This can be done by tailoring the video retargeting strategy to mobile users, desktop uses, Mac users etc. Splitting an AdWords Campaign into different segments can boost ROI and CTR significantly. This is especially true if there are performance differentials between Mac, PC and mobile.
- Test your ad campaign’s performance. Keyword optimization plays an important part in this regard.
- Maximize your ad conversion schedule. Ads do not perform uniformly across different time slots. It is important to correctly assess the converting ability of ads based on the times and dates they run. Increased ROI and decreased spend are critical to any successful Google AdWords campaign.
- Negative keywords can boost your ad’s success rates by eliminating search queries that are associated with your string of keywords.
- Maximize the effectiveness of LCA (last click attribution). The last click is the final click before the revenue is credited to the ad. An effective way to use attribution models is to allocate fixed percentages to first click, in-between clicks, and the last click.
Dynamic video retargeting campaigns can work in tandem with an optimized Google AdWords campaign to achieve maximum conversion, CTR and user satisfaction.