Ecommerce Retargeting Campaigns: Segmentation Strategy

This document explains the segmentation strategy for ecommerce (ecomm) retargeting campaigns. It details the available segmentation options, provides guidance on when to use each option based on your campaign goals, and discusses considerations regarding domain traffic and campaign performance.

Overview

Ecomm retargeting campaigns now feature a Segmentation Strategy section that allows you to select one of three segmentation options from a dropdown. These options help you tailor your campaign to meet your business objectives—whether that’s maximizing ROI, balancing performance with audience size, or maximizing reach.

Segmentation Options for Ecomm Campaigns

When creating or editing an ecomm retargeting campaign, you will see a dropdown with the placeholder text "Select an option…". Opening the dropdown displays three segmentation options:

• Maximize ROI
  • Description: Targets the smallest, highest-intent audience.
  • Use When: Your primary goal is to optimize for the highest return on investment.
• Balanced
  • Description: Targets a mid-sized, performance-focused audience.
  • Use When: You want a balance between conversion performance and audience volume.
• Maximize Reach
  • Description: Targets the largest audience, prioritizing reach over strict performance metrics.
  • Use When: Your goal is to increase overall reach, even if it means a slightly lower conversion rate.

When to Choose Each Option

Below are some examples of campaigns where each segmentation strategy might be most effective:

Maximize ROI

• When to Use:
  Use this option if your campaign is focused on high-value conversions and you want to target the users most likely to convert.
• Example Campaigns:
  • A premium product launch for a high-ticket item, such as a luxury watch or designer handbag, targeting your most loyal and high-intent customers.
  • A limited-time exclusive offer for a high-margin product where every conversion has a significant impact on profitability.

Balanced

• When to Use:
  This option is ideal if you’re seeking a compromise between conversion quality and a broader reach, targeting both high-intent and moderately interested users.
• Example Campaigns:
  • A seasonal promotion for a mid-range product line (e.g., a summer sale for a clothing brand) that aims to attract both repeat buyers and new customers.
  • A product relaunch where you want to capture a wider pool of potential customers while still maintaining strong performance metrics.

Maximize Reach

• When to Use:
  Choose this strategy when your primary objective is to boost brand awareness or drive a large volume of traffic, even if the conversion rate may be lower.
• Example Campaigns:
  • A clearance sale or end-of-season promotion where the goal is to clear inventory by reaching as many customers as possible.
  • A new product category launch aimed at generating buzz and driving traffic to your site, where capturing a wide audience is more important than immediate high conversion rates.

Additional Considerations for Traffic and Performance

Insufficient Addressable Traffic for Maximize ROI

• Scenario:
  If your domain's addressable traffic isn’t high enough to support the Maximize ROI segmentation, the intended high-intent audience may be too limited.
• Implications:
  • The campaign might not reach enough high-value users, potentially resulting in fewer conversions.
  • Since the segmentation option is applied as chosen, insufficient traffic can adversely affect performance.
• Recommendations:
  • Evaluate Your Traffic: Review your domain’s traffic metrics to ensure they align with the expectations of the Maximize ROI segment.
  • Consider Alternative Options: If traffic is low, consider opting for the Balanced segmentation to broaden your audience while still targeting quality users.
  • Optimize Campaign Assets: Enhance ad creatives and offers to better engage the limited pool of high-intent users available.

Campaigns Not Meeting KPIs with Maximize Reach

• Scenario:
  If a campaign using the Maximize Reach segmentation yields weak performance, it may indicate that targeting too broad an audience is diluting overall conversion quality.
• Implications:
  • Expanding reach significantly can sometimes lead to lower engagement or conversion rates if the additional audience is less qualified.
  • The segmentation option is applied regardless, so suboptimal performance requires adjustments to the campaign.
• Recommendations:
  • Review Campaign Metrics: Analyze performance data to determine if the broader audience is less responsive.
  • Refine Targeting: Adjust targeting parameters or messaging to better engage the expanded audience.
  • Reassess Segmentation Choice: If the Maximize Reach option consistently underperforms, consider shifting to a more focused segmentation like Balanced to improve conversion rates.