Custom audiences can be used to retarget those who have interacted with your ad to some degree. Use this for your future ad remarketing strategy!
One of the advantages of digital marketing is that you have a second chance if your previous ad or content strategy failed to attract interest from potential customers. Yes, in digital marketing there is such a thing as a remarketing and retargeting strategy. So you can take advantage of audiences who have previously interacted with your business.
To start a remarketing strategy, you need a custom audience so that your ads only run to the audience you want. Now, what is a custom audience? And how to use it?
What is a Custom Audience?
All digital ad platforms offer the option of creating “custom audiences” to define target demographics in a manner that is most convenient for the advertiser. In most cases, the demographics of your advertising audience are calculated algorithmically, using data collected from previous users’ actions on your site and content.
Build your own fan base with the help of custom audiences. Later, only people who meet your criteria will see your ad, making it much more specific.
Let’s say you have a special discount for those who have already made a purchase in December. How can you target this type of customer? You can take advantage of the targeting feature based on transaction history in December, so that ads only appear to the right audience and don’t spill everywhere.
Remember, not all ad platforms support deep custom audience targeting systems. There are limitations given based on the policies of each platform.
This is a very basic illustration of the use of targeted audiences. You can get a wider range of functions! Here are some ideas you can use:
Targeting individuals based on the websites they go to is an option. To illustrate, the advertisement is targeted to only those who have previously visited the selling page. If you want to bring back customers who visited but didn’t buy because the price was too high, you can offer them a 60% discount by making an advertisement for them.
Targeting based on visits can also help deliver product advertisements without confusing potential customers with what you are selling. Because they are already acquainted with the products/services you provide.
This strategy is an expansion and refinement of visit-based targeting. Keep in mind that even potential customers who are genuinely interested in your product or service and who take the time to learn everything there is to know about it may ultimately decide not to purchase. By creating a custom audience, you can direct your marketing efforts toward these highly qualified leads.
You can create targeting options based on the depth of pages visited by potential customers. For example, if you set page depth >= 3, then every audience who has visited at least 3 pages will be able to see the ads that you place.
Based on Number of Transactions
Loyal customers who frequently buy from you should be recognized with discounts on future purchases. As a result, you can narrow your focus to a specific demographic by analyzing the volume of your business’s transactions.
You’ll need a conversion tag (like Google Ads Conversion Tag or Facebook Pixel Event) in place before you can implement this.
This strategy is widely used by e-commerce, where indeed none of their team does approach to loyal customers. Moreover, if they have made a large number of transactions, it is clear that the conversion rate will be much higher than those who have not.
Based on the Length of Time Visited
It’s been a long time looking around but didn’t buy it, it’s a shame if you just throw it away, right? Custom audiences based on how long users spend on a given page are a great way to reach people who still think a lot.
There must be a reason for visitors to linger on the site for extended periods of time. Try to reconnect with your potential closeters and don’t let them slip away.
Based on Content Source
This custom audience approach is essential if you’re using multiple digital marketing channels. Keep in mind that the audience and goals of each digital marketing channel are unique.
An easy example, someone who visits your site because of a search on Google will be different from those who visit from social media content. It could be that one of them has a more specific intent and purpose!
Therefore, it’s time for you to integrate that strategy with a custom audience based on the source of the content. Incorporate your content strategy, and make potential customers more confident with ads.
Make Your Ad Campaigns More Specific with a Customized Target Group!
Wow, that’s fascinating; so it’s like a targeted remarketing campaign? Don’t forget to include custom audience targeting in your ad settings so that your potential customers have the best possible experience with your ads.
Of course the examples above are only a small part of the broad custom audience implementation. You can be creative with other types of custom audience targeting, based on your business profile, audience, and ads.
How to Control Acquisition Costs in Digital Marketing?
The cost of acquisition is one of the important metrics in your digital marketing strategy. The cost of acquisition determines how much it costs for each customer that is obtained. How to optimize it?
Every company that uses a paid marketing strategy ,of course, must understand what the highest acquisition cost value they can tolerate per customer. Why? Because the acquisition cost determines how much you need to pay for each prospect who becomes your customer.
This metric is arguably very crucial. If the acquisition cost is too high, then there is a possibility that you will not get any profit at all from the advertisements that are displayed.
Cost of Acquisition and Its Relationship with Customer Lifetime Value
The cost of acquisition (or commonly referred to as CAC (Customer Acquisition Cost)) has a close relationship with Customer Lifetime Value or LTV. LTV is a metric that serves to measure how much value is given by each customer starting from the first transaction, to completion.
By understanding the average LTV, you can determine the most reasonable acquisition cost value.
When is the Right Time to Use Acquisition Cost Metrics?
Many companies use this metric to measure their success, and indeed the acquisition cost metric is the most popular metric in the world of performance marketing. Unfortunately not all marketing channels fit into this metric!
Examples such as SEO (Search Engine Optimization) where there is no definite definition of marketing costs. If you use the acquisition cost metric, there is a chance that your calculations will be fuzzy and imprecise.
And also not all paid marketing strategies have to get the lowest acquisition costs.
3 Ways to Control Digital Marketing Acquisition Costs
Optimizing Funneling and Organic Marketing
Funneling is a strategic concept where companies segment the categories of their prospects. Generally, funnel is divided into 3: Awareness, Consideration, and Decision where the prospect’s needs can be different at each stage.
Proper funneling can reduce unnecessary acquisition costs.
And when they are familiar enough, only then can you reach them with paid marketing. Automatically budget is only used for prospective prospects who are easier to close and acquisition costs can be reduced.
Implementing a CRO Strategy (Conversion Rate Optimization)
Getting as many conversions as possible is the goal of all types of marketing, no matter what you use. But the fact is that companies often forget that the website or social media account they are using is not optimized to get conversions.
The absence of a CTA (Click To Action) or providing an offer that is less relevant is the reason whyconversion rateis low. Even though you might get a much larger transaction with the budget .
That’s why the CRO or Conversion Rate Optimization. This strategy deals specifically with how to increase the conversion rate that is now happening, and of course this is directly related to acquisition costs.
Balancing Short-Term Advertising and Branding
There are long-term advertising and short-term advertising. You certainly can’t use the same metrics between the two types of ads, because the targeted segments are also different.
Long-term advertising is more focused on planting the brand in people’s memories. Where the use of CAC is certainly not relevant, because it is possible for new prospects to convert at some point when they need it.
And because it needs to be balanced between your long-term advertising (branding) with the short term. So that when your ads reach those who have been exposed to branding, they can convert faster and automatically help control acquisition costs.
Now, How About Your Acquisition Cost Calculation?
You’ve got new information on how to leverage and control acquisition costs for your advertising strategy. Now is the time to calculate and optimize your own acquisition costs. Use these metrics to scale up your business and get as many customers as possible with the least amount of results.