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Retail Campaigns Tell Search Retargeting Success Story

New Findings From Magnetic Show Increase in Click-Through Rates, Return on Ad Spend, and Cost of Marketing


NEW YORK, NY–(Marketwire – Oct 11, 2011) – Search retargeting leader Magnetic today released key data and case studies for the retail sector, as the critical second half of 2011 reaches its most important sales season — Q4.

According to comScore, the 2010 holiday season reached $32.6 billion, setting an all time record for the season. Now, the US Department of Commerce cites e-commerce revenue for the second quarter of 2011 at a 4.2 percent increase over 2010, making the need for retailers to formulate comprehensive strategies that keep momentum and market share ever pressing.

Search retargeting has proven to be an effective strategy for dramatic increases in key metrics. To illustrate that success, Magnetic conducted an independent review of search retargeting results from three key retailers to highlight performance metrics. The retailers, which includes a large department store, an online retailer and a distinctive gift retailer, all realized results that well exceeded the established goals, including:

  • Click-through rates for search retargeting was nearly 3.2 times higher than run of network (RON)
  • ROAS (return on ad spend) was 297% above goal — showing off a strong increase over programs run with previous vendor
  • ROI realized at 700 percent higher than initial investment
  • Cost of Marketing ($ of advertising / $ of revenue) of 14 percent; other partners delivered Cost of Marketing at or above 15 percent
  • CPA and CPC were as much as 95 percent lower than RON for site retargeting

“With search retargeting, you can run a campaign that drives both awareness and direct response,” says Alan Osetek, President, Resolution Media, an Omnicom Media Group Company. “The ability to bridge the silos between the ideology behind display and search really helps brands, specifically those in retail or e-commerce, drive consumers through the funnel, increasing that ROI and return on ad spend.”

The bottom line result across clients was the same — search retargeting enables marketers to stretch online budgets, exceed plan on details such as total ROI, CPM, impressions, cost per order and click-through rates when compared to RON.

“The ability to capture search and take the intent it reveals beyond the search engine works particularly well for retail brands,” says Josh Shatkin-Margolis, Founder of Magnetic. “Retailers that leverage search retargeting in Q4 will gain a competitive advantage by harnessing that data to drive awareness for holiday sales and ultimately conversions both online and in-store.”

For more information on ways to leverage search retargeting for retail campaigns, visit magnetic.is

About Magnetic:
Magnetic was founded in 2008 and represents the first company to focus 100% on search retargeting. Through Magnetic’s search retargeting technology, advertisers target users with display ads based on their search history. With 8 billion monthly searches, Magnetic’s scalable search data marketplace crunches hundreds of millions of keyword combinations giving marketers and agencies the ability to leverage search data, a key indicator of intent, beyond the search engine. Its suite of retargeting technology includes both full and self-service search retargeting as well as site retargeting capabilities. Magnetic’s customer base includes Fortune 500 brands, the largest U.S. advertising agencies, ad networks, exchanges and demand side platforms. Magnetic is headquartered in New York City and funded by investors including Charles River Ventures, NYC Seed, Roger Ehrenberg’s IA Capital Partners, Founder Collective, New York City Investment Fund, Ron Conway and multiple angels. For more information, please visithttps://magnetic.is.