Welcome to the latest installment of our “remarketing on a fragmented internet” blog series.
So far we’ve touched on the three main remarketing challenges ecommerce advertisers face on a fragmented internet: cross-channel orchestration, transparency and incremental lift. We’ve also discussed two strategies for dealing with these challenges: channel isolation and outsourcing.
This post addresses a third strategy: In-house advertising.
Brands that grow weary of the technology tax that comes with outsourcing often take their advertising in-house. They start by running a series of internally-managed incrementality lift tests to validate whether in-house remarketing is a profitable investment.
The benefits of in-house remarketing start to show up in the test results:
- There’s proof that not showing ads decreases sales. Ads matter!
- Lift tests also prove that ads have a direct effect on recent web visitors who have low purchase intent but high lift (i.e. they don’t buy often but they are influenced by ads).
With this data at their in-house fingertips, marketing teams can start targeting high lift users who will generate net-new revenue, and stop wasting budget on users who would have purchased regardless of seeing an ad.
In-house remarketing is not without drawbacks though. It can be expensive to run, as the costs of building your own technology stack and/or licensing software on a SaaS (Software as a Service) basis can add up.