Many use dynamic remarketing campaigns on Facebook - and for good reason. They are ideal for reaching out to your existing customers, generating upsells, and reaching target audiences who are familiar with your brand but have not yet made a purchase or conversion.
How much thought do you put into your objective when setting up a dynamic remarketing campaign on Facebook?
It's no secret that most e-commerce stores aim for purchases in their remarketing campaigns, which is why the natural choice often falls on 'Purchase' as the ultimate conversion event for the campaign. It seems logical, especially when working in the lower funnel, but does it work?
We have conducted a split test, and therefore we can conclude that 'Purchase' doesn't always have to be the primary conversion event, even if the campaign is a remarketing campaign and your primary goal is sales.
Our results show that a remarketing campaign can perform up to 66% better if you choose 'Add to Cart' as the primary conversion event instead of 'Purchase'.
Why is that? Perhaps because there is a requirement for the campaign to generate 50 purchases within a 7-day period to exit the learning phase. And for a smaller webshop, that can be difficult to achieve. The greatest effect is therefore observed in larger webshops with an extensive remarketing audience and a high budget.
A lot of our partners benefit greatly from working with remarketing on Facebook.
However, due to the limited amount of data we have gradually, remarketing audiences are becoming smaller and smaller, making it harder to achieve the same level of performance.
For us, it is therefore particularly important to test our way to the right setup - both in terms of the technical setup and the content aspect.
Rikke Nielsen, Paid Social Specialist at MCB
Remarketing campaigns on Facebook encompass an effective advertising method that allows businesses to reach potential customers who are already familiar with the company. It could be that they have visited the company's website or interacted with its products or services.
Remarketing campaigns are therefore a step towards loyal customers, and they can be the tool that keeps your customers interested in your products and services.
By utilizing meta tracking pixels, which track visitors' behavior on your website, along with other targeting technologies on Facebook, you can further target your different ads to potential customers and thereby increase the chance of conversion.
You can make use of various types of remarketing campaigns.
If you run an online store, dynamic product ads are particularly relevant. They allow you to create carousels that display products to your audience based on their previous interactions with products on your webshop.
Dynamic product ads are visually expressive and quick to comprehend. They also create a good and engaging ad experience as they consist of multiple elements such as images, CTAs, and texts.
Other types of remarketing campaigns include lead ads and single image ads.
Lead ads are especially useful if you want to gain more subscribers for your newsletter list and engage users over the long term, while single image ads are effective in capturing attention by highlighting specific messages or products.
In MCB's marketing department, most partners work with remarketing, including dynamic product carousels. However, our experience tells us that they rarely manage to generate the required 50 purchases within 7 days, and therefore, they don't exit the learning period.
We have set a goal to achieve that!
We will set up a remarketing campaign with a dynamic product carousel that delivers such good results that the learning period is not an issue. And for that, we need data from a split test.
Therefore, we have created 3 identical remarketing campaigns as dynamic product carousels on Facebook. They have been targeted for 'Purchase,' 'Add to Cart,' and 'Content View,' respectively.
The test was also conducted across partners in 3 different industries: fashion, bedding, and jewelry.
Our results subsequently showed that webshops in the fashion and bedding industries experience significantly better performance when 'Add to Cart' is chosen as the primary conversion event for remarketing campaigns.
Both industries saw up to a 66% lower cost per Purchase and up to a 17% lower Cost per 1,000 Accounts Center accounts reached (which refers to the average cost of presenting an ad to a specific number of accounts in your audience).
With these results, it is possible to conclude that a large number of webshops would benefit significantly from remarketing campaigns if 'Add to Cart' is chosen as the primary conversion event instead of 'Purchase.'
As an added bonus, it was possible to get all campaigns out of the learning period with 'Content View' as the primary conversion event. And to a large extent, the same was possible with 'Add to Cart.'
With 'Purchase,' the results were entirely different. None of the campaigns exited the learning period.