In part one of our series about last month’s European Finch + Google Growth Summit, we explained how and why we brought our European clients inside Google HQ in Dublin for exclusive presentations by experts from both companies about the value of automation and machine learning for business growth.
This week, we’ll summarize presentations on the importance of knowing your audience and using this knowledge to connect with them—in the right way and at the right time.
Part Two: Audiences
Adi Sivan, Google’s Audience Engagement Specialist, explained how consumer behavior has changed drastically. Not only has use of mobile and tablet search increased, but three trends over the last two years show that customers have become:
- Curious: We research just about everything (and that usually means we “Google it”). As an example, the search term “best umbrellas” has grown by 150% on mobile alone, which indicates more than rainy weather; it shows that customers are willing to spend time researching just about anything.
- Demanding: We don’t just want information—we want relevant information. The term “_for me” increased 60% on mobile in the last two years alone. Customers don’t want to fill in about me forms when they search; they want—and expect—Google and other companies to know who they are and what they care about.
- Impatient: While customers are willing to spend time researching things like umbrellas, an increase in search terms like “now” and “today,” show they also want immediate results.
With more than 7 billion monthly users across Google and its apps, the company has seen an explosion in data. Relying on automation and machine learning, they use this data to create audiences, which gives marketers the ability to target their ideal audience, retarget customers, and reach would-be customers.
As Adi explained, you can find your audience insight report within your Google Analytics account. Using Google's three solutions—RLSA, Display RMK, and Customer Match—you can retarget customers or potential customers based on their activity on your site.
How Finch Does Audiences
Our next presenter was Finch’s Timo Bernsmann, Country Manager Germany. He began with a question: “If you knew that the person searching on Google had been on your site before, had loaded a product into their shopping cart—but then aborted—and is now searching for another relevant search term, would you bid more for that click?”
The answer is simple: of course you would! The more engaged a visitor was with your website in the past, the more likely they are to buy in the future. Commitment indicates the probability to convert on repeated visits.
To make the most of historic user data, you need to define different user profiles that capture engagement on the website, and for which bids are set separately. For example:
- For eCommerce, you could build audiences for those who have visited your homepage, viewed a product page, added a product to their cart, or made a purchase.
- For capturing leads, you could build audiences for those who have visited the homepage, visited a 'contact us' page and abandoned, or previously filled out a lead form.
The above illustration shows your first-time visitor is at the top of the funnel with a 1% conversion rate; your cart abandoner has a conversion rate of 5%; and your returning visitor has a 7% conversion rate. Considering this data, we can set specific bid adjustments, so we increase our bid for the cart abandoner by 50% and even double the bid for our returning customer. Including the visitor history of the user in our bidding, we know that we are still profitable, even with a higher CPC.
This is just an exemplary grading, but using Finch’s programmatic software we can predict the individual conversion rate for each user on a very granular level.
How do we do that? By using our granular campaign structure (single keyword ad groups), we create isolated data points. On that granular level, we set bid modifiers for user profiles for each keyword in each match type. We utilize all the information about audiences and include the visitor history of each user as well as a corresponding conversion probability in our bidding. This means we can spend our client’s budget in the most efficient way.
Timo went on to share a case study featuring one of our German clients whose total cost on audiences was 19% of their overall spend but drove 28% of their revenue, which shows a 60% gain using audiences.
To see how Finch can automate and simplify paid search, so your business can perform, try our free audit.
In our final post about the European Finch + Google Growth Summit, we’ll tell you about a big mistake many businesses make when starting out with Display (based on the presentation by Kristina Faber, Google’s Head of Display for Central Europe) and about exciting new updates in how Finch does Display (as presented by Finch CEO Bjorn Espenes).