Remarketing has increased in popularity in recent years, being used by small and large brands from all sectors. This type of PPC campaign allows you to show ads to users who have visited a website without any conversion (buy a product, fill out a form, etc.). It’s like giving them a second chance! But how much does remarketing cost?
Google Display Network, AdRoll, Retargeter or certain social networks, such as Facebook and Instagram, stand out among the most demanding platforms for remarketing. Its wide reach, high ROI and advanced segmentation help to understand the preference of advertisers for these services, especially by the search engine Alphabet, which reaches 9 out of 10 existing users on the Internet, with more than one billion impressions per month, according to Think With Google.
However, Facebook is not far behind in the fight to dominate remarketing. Zuckerberg’s social network has more than 2,320 million active users (January, 2019), a gigantic community that triples the population of the European continent and almost doubles that of Africa. However, the price of retargeting on Google and Facebook is different. We will now look separately at how much remarketing costs on each of these platforms.
Google Remarketing, how much does it cost?
As you probably know, Google Remarketing is part of the suite of advertising tools available in Google Adwords (Google Ads since last year). Its purpose is to show ads to users who have already visited your site, using the cookie stored on your navigation device (tablet, smartphone, etc.).
Since Alphabet also owns YouTube, its advertisers have the opportunity to retarget both YouTube and the most famous search engine in the market, Google, which accumulates an estimated market share of 92% or close to 80%, according to several studies. As a result, the Google Display Network appears to be a very attractive option for B2B and B2C companies in all sectors.
But what is the cost of Google Remarketing? This point is very important. The higher the investment, the lower the ROI, right? If a pay-per-click ad in your SERPs costs an average of 2-3 dollars, a remarketing ad is more affordable: between 0.25 and 0.60 dollars. These prices apply to clicks: the advertiser only pays when users click on the retargeting ad.
If they do not click on the ad, there is no need to pay, which has a hidden benefit for the advertiser: brand recall. Yes, it is true that the user has not visited a website, or performed any conversion. But the next time you find your products, you’ll be familiar with brand naming and branding. This will increase your chances of making a purchase or hiring a service in the future.
However, it should be noted that the cost of remarketing on Google varies by industry. In the most competitive, some keywords can exceed $6-7 per click, such as insurance agencies or law firms. However, tourism, entertainment and other sectors have costs per click of 1-2 dollars, so they require less investment.
Remember that the advertiser only pays if the users click. But this does not guarantee a good return on investment. Using conversion filters, limiting the frequency of impressions or performing a deeper segmentation (for example, retargeting with users who have visited a specific product or category) are keys to making this marketing strategy profitable.
Facebook Remarketing, how much does it cost?
Facebook Remarketing is one of the most widely used advertising tools on the Zuckerberg social network since the launch of Facebook Ads in November 2007, three years after this platform was created. Because of the many advantages of Google and YouTube, you might think that Facebook has nothing to do to compete with Alphabet.
Actually, Facebook Remarketing is very much liked by advertisers, especially since the acquisition of Instagram in 2012 for $1 billion. And it is possible to retarget on Facebook and Instagram, two social networks that add up to an incredibly large community.
With the help of Facebook Pixel, advertisers can identify users who left a website, include them on a retargeting list and send them advertising related to products and services they’ve already visited, without any conversion.
There is no single answer to the question of what Facebook Remarketing costs. According to Hootsuite data, Facebook’s CPC is around 0.20-0.30 dollars per click, while the CPM (cost per mille) is over 7 dollars. The quality of the competitor’s ads, as well as the industry’s competitiveness, can also make the cost per click more expensive or cheaper.
Facebook Remarketing offers two ways to allocate a budget to an advertising campaign. Namely:
● Daily budgets: in this case, the company establishes the limit amount it will invest in different ads and campaigns for 24 hours. This option is ideal for better distributing the available budget in a given period of time, thus eliminating the risk of running out sooner than expected.
● Budget of the set of ads: in this case, companies do not set daily limits, but mark the total amount they will spend on a set of ads over a period of time.
Having clarified how much it costs to remarket, we can conclude that this is one of the most interesting advertising strategies for advertisers. Retargeting uses segmentation to show ads to people who are interested in the products and services of a brand, with which they have already had a first contact. This increases the chances of closing a sale, hence the power of remarketing!