A guide to ad retargeting strategies for 9 major industries

If you have the following questions about redirect tags:

I have been using these tags for a while and have achieved some results. How do I rank among my peers?

What conversion goals, at what scale, and at what bids are my peers using for redirects?

What are the scenarios for redirection?

What should be the frequency cap for each behavior?

Does redirection turn shallow conversion into deep conversion?

Looking at the overall market, for which types of customers is redirection more effective?

Can industries learn from each other?

You’ll find those answers, and perhaps more, below.

01. Current situation

With the improvement of basic tag capabilities, we continue to explore scenario-based crowd recommendations (targeted live streaming sales, targeted platform e-commerce traffic) and redirection strategies, and continuously promote the productization of redirection capabilities.

Based on more than 1,000 high-quality advertiser cases with good results using redirection, we have compiled industry best practices for redirection strategies to help advertisers better use this feature.

DMP Redirect Tags

Overall, the Retargeting tag plan has better results under the same account, with PVR +42.4%, conversion cost -22.3%, and cold start pass rate +25.8%.

• Overall, using tags has a higher PVR, lower conversion cost, and higher cold start pass rate. And almost all indicators are confident.
• The PVR of the two major industries, local direct sales and mass consumption, is higher and the conversion cost is lower after using labels.
• The cold start pass rate has increased after using tags for both content consumption and investment consumption.
• In the mass consumption industry, the number of accounts with higher PVR and lower conversion costs accounts for the largest proportion.
• Judging from the usage of tags, the five major industries have a high number of customers, advertisers, plans, and population packages using "precision-exclusion".
• Regarding the use of the automatic update function, the five major industries have a higher number of customers, advertisers, plans, and population packages using "precise-automatic" and "precise-non-automatic".

• By industry, among the five major industries, the content consumption industry (games, online services, etc.) uses the most redirection tags (accounting for 72.5%), with PVR +39.9%, conversion cost -34.5%, and cold start pass rate +77.0%. The PVR of the mass consumer industry increased by 150.5%, and the conversion cost decreased by 30.0%.

AD Tik Tok expert directional live broadcast scene

The plan using Douyin influencer targeting under the same account has better results, with conversion cost -16.5%, PVR +46.9%, ecvr_diff -12.24%, and a significant cold start pass rate of +17.13%. The use of Douyin influencer targeting screens people with a higher concentration of positive examples, reduces the pressure of model estimation, and helps to quickly pass the cold start; the single plan ARPU is -15.4%, and there is still room for improvement.

02. Redirection effect

Private domain redirection tags (my advertising audience, my landing page audience, my APP audience)

• Positive: shallow conversion – deep conversion, deep conversion – repeat purchase.
• Exclusion: Reduce costs by excluding people who have already obtained leads/have been reached by one party (lower cost)/have reached invalid people multiple times.

Industry redirection tags (industry advertising behavior, MI industry APP behavior)

• Positive: Use the accumulated clues in the industry to convert competing products.
• Exclusions: high-potential people in certain industries (micro-loans), non-paying low-participation people (in the gaming industry, only downloading, installation, activation, activation and registration).

Tik Tok Talent Tags

• Positive: Obtain high-potential groups in both product and live broadcast scenarios.
• Exclusion: Reduce costs by excluding your own fans.

03. Industry benchmarking inspection

The actual effect of an ad campaign is related to many factors, including promotion purpose, conversion goal, campaign timing, bidding strategy, population size, material quality, and product mix, and cannot be generalized in one sentence.

Here we screen advertisers with redirection share plans > 10%, CPA, PVR, and running volume significantly improved compared to plans not using redirection, billing ratio between 0.8-1.2, and daily average consumption exceeding 5,000. Using the conversion cost (redirection VS non-redirection plan) improvement rate as a reference, we provide the median ranking of advertisers in each sub-industry for benchmarking reference.

04. Industry guidance

We extracted advertisers whose redirection plan accounted for >10% during the analysis period, whose CPA, PVR and running volume were significantly improved compared with those who did not use redirection plans, whose billing ratio was between 0.8-1.2 and whose average daily consumption exceeded 500. We divided them according to promotion goals, conversion goals, product characteristics and brand stages, extracted common characteristics and formed industry guidance, covering industries with concentrated outbreaks of high-quality cases such as 3C and electrical appliances, media and content, tool software, clothing and jewelry, home building materials, education and training, fast-moving consumer goods, business services, life services, food and beverages, medical care, and games .

Redirect capabilities are marked in color and need to be used in combination with other directional capabilities in most scenarios. Filtering converted and Filtering installed are relatively simple in function and very mature in use, so they will not be elaborated here. Advertisers can continue to use them based on their current experience.

1. 3C and electrical appliances

The marketing characteristics of the 3C and electrical appliance industries are low frequency of new product launches, low probability and long cycle of repurchase, reliance on big promotions or spokespersons to bring goods, and long cycle of corporate product education.

Currently, redirection has shown excellent results in three scenarios: local general small home appliance diversion, local vertical small home appliance diversion and corporate sales of big-brand office equipment. In addition, live streaming of small household appliances is also an important marketing scenario. The average daily consumption in the past three months has increased by 334% month-on-month compared to 245% of the overall market.

Based on these four scenarios, the redirection suggestions are as follows:

2. Media, content, and tool software

The essential products of media, content and tool software are APPs, which differ in vertical attributes, payment attributes and substitutability.

Based on this, the following redirection strategies are recommended in the following two scenarios:

3. Costume Jewelry

Although apparel and jewelry is a large industry, the average order value and consumption frequency vary greatly among its sub-industries. The entire industry has a broad target population. Well-known brands focus on those who have recent interest, while local unlicensed brands focus on cultivating loyal users. In addition, this year, apparel and jewelry will focus on live streaming sales scenarios.

The following are the recommended redirection strategies in the following four scenarios:

4. Home building materials

There are three scenarios for home building materials: decoration design, installation of home appliances, and home department stores. The average order value and consumption frequency in the three scenarios are different. Currently, there are many cases of selling clothing and jade products in the home furnishing and building materials industry under mass consumption, which are not covered here.

The following are the recommended redirection strategies for the above three scenarios:

5. Education and training

The role of Bytedance in education and training marketing is mainly shallow conversion. After obtaining sales leads, advertisers will conduct in-depth conversions themselves, so the overall targeting is relatively broad, and redirection mainly plays an exclusionary role.

The redirection strategy recommendations for corporate training, interest training, and vocational skills training are as follows:

6. Commercial Services

Commercial services can learn from the targeting ideas of office equipment. The difference is that there is basically no repurchase. The redirection suggestions are as follows:

7. Lifestyle services

The life services launched on Bytedance are mainly products with high average order value and a repurchase cycle of more than one year.

The marketing idea is not direct conversion, but to attract fans or collect leads through the promotion of Douyin accounts, and then educate through rich short video content. The other two types of services are mostly physical services with strong local attributes, so the initial targeting should not be too detailed.

Based on this, the redirection suggestions are as follows:

8. Fast Moving Consumer Goods

Fast-moving consumer goods have a deep foundation in external e-commerce platforms and have a high consumption frequency. The initial orientation should not be too fine. The customer acquisition strategy for this type of product is not based on specific product categories, but on brand attributes and the breadth of the audience. The main users of redirection are maternal and child daily necessities, international brand cosmetics, pet products, personal care and cleaning daily chemicals. Some domestic beauty products are basically for collecting sales leads, which will not be discussed here.

Based on this, the redirection suggestions are as follows:

9. Games

The gaming industry has the most redirection cases, which is related to the overall size of the industry. The industry has strong data and has accumulated a large number of high-value and negative people. Redirection mainly plays an auxiliary role, and no expert targeting related to the endorsement stars is seen.

Based on this, the redirection suggestions are as follows:

05. Summary

This article reviews the current status of redirection strategies, provides industry benchmarking, and provides industry best practices based on 1,000+ case studies. We hope to provide valuable reference and help for advertisers to better use redirection capabilities.

In the future, we will continue to explore scenario-based crowd recommendations (targeted live streaming sales, targeted platform e-commerce traffic) and redirection strategies, and continuously promote the productization of redirection capabilities.

Author: Juliangxue

Source: Quantitative Science