Brad Stephens here and today I wanted to share some value on how I recently turned $144 into $915 over a few days (533% ROI). I managed to do this by using retargeting. Retargeting is the easiest way to make more money for every visitor that lands on your website. For those of you who don’t know what retargeting is, it’s when someone lands on your website and you then run ads that follow them around the web – with the objective of trying to get them to come back and buy something they didn’t buy the first time around.
I was ran the entire promotion through Facebook, and therefore I only retargeted on Facebook. The offer I was promoting was selling for $17.95, and I only ran my retargeting ads in the right sidebar. Now please keep in mind this wasn’t an advanced sequential retargeting campaign. It was extremely simple, which makes it even more applicable as anyone can set up something like this. So here is what I did.
I ran a website clicks ad to a custom audience I had built up from people landing on one of my related sales pages. Here is the ad I was running:
As you can see, there were 15 checkouts from this ad, each at $17.95. That equals a total of $269.25. How much was I paying per conversion on this ad?
As you can see, I was paying between $4-$5 per conversion, and I was making $17.95 per conversion.
I set up another right-hand side ad, however this time I ran it to people who had already landed on my sales page from the first ad. So I had placed a Facebook pixel code on my sales page and everyone who landed on my sales page was added to the new custom audience. This is the audience I ran my second ad to. Here is my second ad:
The ad above shows my updated ad headline (I changed it for scarcity reasons as the promotion was coming to an end), the original headline was “3 Days Left”. I had to give the custom audience some time to build up, and this second ad went up with 3 days left on the promotion. As you can see, there were 27 checkouts from the ad, again at $17.95 each. That is a total of $484.65. How much was I paying per conversion on this ad?
I was paying $2.67 per conversion and I was making $17.95 per conversion. Again, great margins. This ad was a lot cheaper per conversion because these people had already seen the offer, and I was just bringing them back a second time (this is the power of retargeting).
I set up a third ad purely for the purpose of scarcity on the final day of the promotion. This was also run to the custom audience containing people who had already seen the offer (same audience as ad #2). Here is the ad:
As you can see by the headline, I was putting an emphasis on the fact that there were less than 2 hours left for them to get in on the offer (before the price increased to $27). I made 9 checkouts from this ad and I was making $17.95 per conversion. That’s a total of $161.55.
I was paying $1.59 per conversion. I put this lower cost down to the fact that my headline said “2 hours left” and I was emphasizing the price increase in the ad. I will take paying $1.59 to make $17.95 any day! Here are the totals from the campaign.
Total Ad Spend = $144.54
Total Revenue = $915.45 (51 checkouts x $17.95)
Total Net Profit = $770.91
Total ROI = 533% ROI
So here are some take-aways from the campaign.
1. First of all, always retarget your traffic 🙂
2. Place emphasis on scarcity (whether it be a price increase or the offer closing down)
3. Run your retargeting ads in the right hand sidebar in FB. If it performs well, you can also retarget in the newsfeed.
4. Exclude thank you page from your custom audience (so that you are only retargeting people who didn’t purchase).
Here is how you exclude the people landing on your thank you page from your custom audience:
Select “People visiting specific web pages but not others”, and then put your sales page URL in the “include” field and your thank you page URL in the “exclude” field. This means only people who didn’t purchase will be added to your custom audience, and when you run your retargeting ad, you will be only be running the ad to people who haven’t purchased (so you aren’t wasting money on serving the ad to people who have already purchased).
I hope this helps you out with some of your retargeting campaigns. And if you don’t have any running, hopefully this makes you take action to test one out 🙂
Please drop a comment down below!
To your self-made success,
(Amigo, my 3-legged dog, also contributed to this campaign and wanted to say hi) 😉