Google recently released some early holiday goodies for retailers across a number of verticals. While dynamic remarketing (a.k.a. dynamic retargeting) on the Google Display Network (GDN) has been available since June, it had been mainly limited to retailers with a Google Merchant Center Account, notwithstanding some beta tests within the travel and education verticals. However, last week, Google rolled out further vertical support, enabling dynamic retargeting across the hotel, flight, real estate, classified, job, auto, finance, and education verticals.
Retargeting is proven to be a very effective conversion driver. However dynamic retargeting (or as Google refers to it, dynamic “remarketing”) is tailor made for retailers. Dynamic retargeting dynamically serves product-specific ads to potential customers based on the products they’ve previously viewed. This gives retailers a powerful tool to tailor creative to customers in ways that are more likely to grab their interest and drive conversions and purchases.
While many retailers have already been including dynamic retargeting as part of their marketing mix, Google’s support for some non-traditional verticals including jobs and educations, gives companies in those verticals an opportunity to dip their toes into the retargeting waters.
Although Google’s dynamic retargeting product may be a good first step for retailers wading into retargeting, sophisticated marketers are likely to find some Google’s new offering lacking in a number of ways.
Google’s remarketing product is limited to only displaying ads on sites that the Google Display Network reaches. The display world is much more fragmented than the search world, and GDN is just one of the many ad exchanges that serve display ads across the Web. GDN only accounts for a plurality of the display inventory available on the web which means advertisers advertising on GDN alone would be missing out on a majority of display impressions across the Web. The missed opportunity is significant. Essentially, retargeting on GDN alone is akin to only running search ads on Bing.
Equally important to note is AdWords lack of reach on Facebook. Study after study has shown the incremental value of marketing across multiple channels. In fact, Marin recently released a white paper on retargeting, which found that advertisers using the Perfect Audience retargeting platform to retarget on both Display and Facebook enjoyed better returns than advertisers who were only retargeting within a single channel. Dynamic retargeting through AdWords means missing out on retargeting on Facebook, the most popular social network in the world. With over 1 billion regular users, dynamic ads via the Facebook Newsfeed and Sidebar should be a cornerstone of any retargeting strategy.
Finally, going beyond the Google walled garden is essential for savvy marketers looking to leverage tactics such as look-alike modeling to try to build new business. Currently, Google lacks a smart prospecting product rivaling Facebook’s Lookalike Audiences. Additionally, tactics such as partner retargeting with second-party data, or audience targeting using third-party data can further help marketers increase their potential customer base.
Google’s dynamic remarketing product is a good starter offering for retailers who want to test how dynamic retargeting can help their business. However, its basic capabilities combined with its lack of access to channels like Facebook and non-GDN display ad exchanges limits its usefulness as businesses grow and become more sophisticated with their marketing efforts. Even for marketers new to retargeting, using a cross-channel retargeting platform like Perfect Audience can help you get started with dynamic retargeting, but still reap the benefits that come with retargeting across channels.