I'm confused about retargeting...

10 replies
When the ads follow the person around, what happens to the advertisers whose ads would have otherwise been in those same spots?

-- TW
#confused #retargeting
  • Profile picture of the author AmericanMuscleTA
    Probably in rotation and are based on impressions... I'm guessing.

    I just signed up for SquareUp, and now everywhere I go their ads show up.
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  • Profile picture of the author ecoverartist
    A more relevant/targeted at for you is going in that spot. The other advertisers' ads are going in more relevant spots for their viewers. It's not really like "you have X number of ads to be displayed in this precise place" -- it's more like an open pool of relevancy. Ads go where they're the best fit -- so advertisers are happy Make sense?
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    • Profile picture of the author Davidwr
      From the publishers point of view, they're after the advertiser that will pay the most amount of money for their ad inventory (advertising space), so let's say you're using AdRoll, the will bid (on your behalf) for the advertising space to be used to show your ad and the Ad Network (AdRoll is ours in this case) that bids the highest amount wins and is able to display their client's ad. All this happens in real time, which is why the process is called Real Time Bidding or RTB for short.
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  • Profile picture of the author Greedy
    The highest bid wins, and then it goes to the highest budget typically.

    It is the same as getting out bid on the PPC network. But retargeted clicks should be worth more to most, since they are more accurate.
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    • Profile picture of the author aSecret
      To echo what ecoverartist and Greedy have said, those ads then appear in other slots that are relevant for them, that they can win with their bid. If you brought it up with the ad network they'd simply tell you to bid higher--for them it is certainly not a "problem"! If you were an individual advertiser seeing your impressions go down for a particular site placement, you wouldn't necessarily know whether it was retargeting or a new high-spending non-retargeting competitor pushing you out.

      I do work for a company that has been advertising on the Google display network for a long time, and I've noticed our bids have gotten higher than they were historically a few years back, before retargeting became popular. I think it's definitely been an important factor in making AdWords more expensive in recent years.
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  • Profile picture of the author TimothyW
    "I've noticed our bids have gotten higher than they were historically a few years back, before retargeting became popular. I think it's definitely been an important factor in making AdWords more expensive in recent years."

    That makes sense. (those economics)
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    • Profile picture of the author JensSteyaert
      Originally Posted by TimothyW View Post

      "I've noticed our bids have gotten higher than they were historically a few years back, before retargeting became popular. I think it's definitely been an important factor in making AdWords more expensive in recent years."

      That makes sense. (those economics)
      Yes the highest bidder wins, and the more people that bid on the same advertisment spot, the higher the price will be.

      But retargeted traffic is the best traffic you can get to increase your conversions though
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  • Profile picture of the author Simeon Tuitt
    Originally Posted by TimothyW View Post

    When the ads follow the person around, what happens to the advertisers whose ads would have otherwise been in those same spots?

    -- TW
    Hi TimothyW,

    Davidwr, Greedy, aSecret and JensSteyaert are all spot on, the highest bidder is the one that will display first in front of people and most often, while you can retarget people for very little, if you put your bid up a bit then you get shown more often which allows you to be in front of your audience more often to get that click.

    The amount you pay with retargeting will be a fraction of the cost of an average click, my average cost per click is usually 50p, where as with retargeting I can get my visitors seeing my ads for 3p and 5p, if I bid 10p then my ad chases my audience around FB. I am still paying a lot less than a normal click, but bidding that bit extra will get you seen more by your audience.
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  • Profile picture of the author ZephyrIon
    Originally Posted by TimothyW View Post

    When the ads follow the person around, what happens to the advertisers whose ads would have otherwise been in those same spots?

    -- TW
    Well, when it comes to CPMs they can decide they have a goal to sell X amount that day. If they don't sell all of them the CPMs go to a cheaper rate known as RON (run of network). RON also includes sites whom just cannot be classified or don't have a targeted niche.

    With Facebook they have something called FBX which is a place where outside 3rd party companies buy CPMs at large bulk rates, creating a large discount, the 3rd party companies than resell them to you and this is how they are able to give retargeting at such cheap rates: they're arbitraging the difference in price of CPM or CPC or however they've decided to look at how they're backing out.

    With services like AdWords retargeting, Google feels if a user has clicked on your ad before than they'll have a higher chance of clicking on it again or a similar ad if they've already bought from or visited just your website. So Google serves your ad because they're in an essence someone who already knows you so they charge you less because they know they have a higher chance of being paid for a click even if its cheaper because it's retargeted.

    So to answer your question: your asking the wrong question.
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