Tag Archives: Remarketing

Search to Display ReMarketing – To lower Cost of new Customer Acquisition

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
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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
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CTRs by Marketing Channels:
–┬áSearch Marketing – 1% to 2%
– Display Marketing – 0.1% to 0.2%
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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
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Now, introduction to Search ReMarketing: – Reaching out to highly-intent driven users who visited the eCommerce store via Search, but did not complete transaction.
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Scenario 2: Search to Display ReMarketing

Increase Search Marketing spends to expand to more high quality traffic by increasing span of keywords or by bidding higher on converting keywords.
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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
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Acquiring New Customers:
– Search Marketing = 600 INR to 1300 INR
– Out of 50 to 65 visitors – 1 successful transaction; 49 – 64 users drop-out.
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Display ReMarketing to the dropped-out users;
– 49 – 64 Clicks: 490 INR to 960 INR
– 2-3 usual conversions
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Total Conversion 3-4
Total Cost: 1090 INR to 2260 INR
Average Cost of Acquisition: 360 INR to 572 INR
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Closing Remarks:
  • 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