Year in review: Remarketing delivers better ads, better performance

Today we have a post from Aitan Weinberg, product manager for AdWords remarketing:

We’ve always believed that display advertising has the potential to be smarter, better performing and more measurable. Today we’d like to shine a light on one of the quiet stars of the display world that is enabling this transformation: remarketing. Remarketing allows you to reach your website visitors with a relevant message as they browse other sites across the web. We rolled it out one year ago across the Google Display Network, and we think we have a hit on our hands. In 2010, the total number of advertisers using remarketing grew an average of 113% every quarter after launch. A few examples of how some of you have used remarketing to great effect:

• Yankee Candle Company used remarketing to re-engage shoppers and increased conversion rates by 600% while cutting cost-per-conversion in half.
• Lenovo PC manufacturers increased sales by 20% and lowered their overall expense-to-revenue ratio by 14% in a campaign that included remarketing and display across multiple networks.
• etrailer.com, an online towing parts retailer, saw twice the click-through-rate at a 75% lower cost-per-click with remarketing compared to their typical display advertising campaigns.

In the year since launch, we’ve boosted performance and scale with three key enhancements to make remarketing even more powerful for the largest to the smallest of advertisers. First, we now enable you to show a relevant ad right after a potential customer leaves your site, when our internal analysis shows they’re most likely to click. Second, we’ve improved the algorithm that helps determine, in real time, how much you should pay for each impression in order to maximize the possibility that a user will click on your ad. Finally, the growing reach of the Google Display Network means you can reach your customers on more and more sites across the web. On average, we reach 84% of the people on a typical remarketing list and we serve hundreds of billions of advertising impressions every month to over 500 million Internet users worldwide.

As we continue to show more relevant ads across more sites, this means more users and publishers benefit as well as advertisers.

• Publishers are seeing significant revenue lift from serving remarketing ads on their sites. Our studies have shown that a remarketing ad brings in nearly 2X the revenue as other display ads.
• Users have told us that they like the more targeted ad experience that remarketing provides. Marie DeOrio, Founder of Vintage Fashion Directory, calls remarketing ads “fascinating and fabulous. It’s that experience where ads don’t feel like ads. If they’re correctly targeted and it’s something you’re interested in, it’s valuable information.” Marie notes that she serves remarketing ads on her own website, vintagefashiondirectory.com as she believes that they "provide a better experience for users."

We’re not finished, either. In the coming months, we have plans to introduce a suite of new features that will make remarketing even smarter, faster, and more dynamic. We anticipate that interest in remarketing will only continue to grow, as advertisers, publishers and users continue to see the benefits, and as we continue to find new technologies that help satisfy the ultimate goal: showing the right ad to the right person at the right time.

Posted by Dan Friedman, Inside AdWords crew