INFOGRAPHIC: Retargeting Can Save You 44% on Cost Per Acquisition


We've all been there. Some innocent window shopping on Amazon turns into display ads following you around the web for products you looked at. Creepy? Maybe. Effective? Highly. This is retargeting.

With conversion rates up to 10x higher, and cost per clicks less than half that of conventional digital ads, digital marketers like us can't get enough of retargeting!

It's so powerful in fact that it can lower your cost per acquisition by about 44%: we did the math! Learn how in our retargeting infographic: 


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Let us walk you through the infographic. In this fictional scenario, you have a $10,000,000 marketing budget to put into awareness advertising. At a $2.32 average cost per click (source), you’d receive 4,310,345 clicks. If you achieved a conversion rate of 2.7% (this is the industry average for search marketing), you’d have 116,379 customers at a cost per acquisition (“CPA”) of $85.93 per customer.

Average cart abandonment rates were reported at 78.4% in Q3 of 2017. This means that there was a total of around 538,793 customers who added products to their cart from your campaign, and 21.6% (116,379) completed a purchase.

Consider this: once someone leaves your website, they're gone forever unless retargeting is in place. This means the cost to get one of those customers back and complete a purchase through awareness marketing could be as much as $85.93 again.

If your retargeting funnel was set up to solely target customers who abandoned their cart, you’d have 422,414 potential customers you could retarget. What’s the cost to reach them? Well consider this: once someone leaves your website, they’re gone forever unless retargeting is in place. This means the cost to get one of those customers back to the website and complete a purchase through awareness marketing could be as much as $85.93 again.

It’s difficult to find accurate data on retargeting CPCs, but in my 8 years of experience running re-marketing campaigns on Google Adwords, they typically fall in the $0.50-$1.25 range. You’ll immediately notice that’s a lot less than the $2.32 average CPC for search campaigns. Wordstream reports an average of $0.66 CPC, with the highest being around $1.03 for the financial services industry. For our fictional scenario, lets use a $1.03 CPC to be conservative.

Wishpond published an infographic that says 26% of lost consumers will return to complete a purchase with retargeting in place. If we use this in our fictional scenario, we could get 109,828 incremental customers (26% of 422,414 abandoned carts) to complete a purchase from our retargeting audience. Now, we have to assume that not all of those customers are going to complete a purchase on their second time coming back to the website. In fact, it may take multiple visits for them to complete a purchase. A 2014 study showed customers visited a website as many as 9.5 times before making a purchase.

Let’s use this data in our scenario. Let’s say our 109,828 incremental retargeting customers came back 8.5 times after their first visit, each time clicking through a retargeting ad at $1.03 per click before completing a purchase. That would cost us $961,541. The average CPA on the original 116,379 customers plus the incremental 109,828 customers garnered from retargeting is therefore $48.46 ($10,961,541 total spend divided by 226,207 total customers).

Compared to our cost per acquisition of $85.93 without remarketing, that’s an average savings of 44% - and that’s the power of re-marketing!

Curious about your own numbers?

Punch 'em in to our calculator below. Then give us a shout to set up your own retargeting program!

Retargeting CPA Savings Calculator
Retargeting CPA Savings Calculator

What is your digital ads budget (example: 10000000)?

What is your cost per click for awareness/search marketing campaigns (example: 2.32)?

What is your conversion rate (example: .027)?

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Contact us to get started with a retargeting program today!