Magnetic Adds Site Retargeting To Search For Display Ads
Magnetic will launch Wednesday a site retargeting tool dubbed Magnetic Force. The offering gives site visitors text or image-based display ads, complementing the company's search retargeting service.
The effort allows advertisers to leverage the intent found in search data by consumers who have visited an advertiser's Web site.
About 10 clients amid the Fortune 500 have been testing the site retargeting service, but Josh Shatkin-Margolis, Magnetic founder, expects more will sign on with the fledgling company to combine site and search retargeting.
The two services work together because while one drives customer acquisitions the other drives retention. It takes a consumer from a generic topic, such as "car insurance" from a search on an engine, and pushes her deeper into the funnel through different stages of intent to more specific brands.
Shatkin-Margolis points to a recent study from comScore and ValueClick showing that retargeted ads increase trademark search behavior by 1,046%. And between May and December 2010, the number of U.S. marketers using site retargeting rose from 17% to 22%, according to eMarketer. The research firm also notes that during that time, the proportion of marketers launching search retargeting programs jumped from 13% to 28%.
Technical similarities explain the success of combining the two strategies. A partnership between Magnetics and a network of search engines allows cookies to be dropped into a searcher's browser to identify the keywords being searched. Another cookie is dropped in the same browser when the searcher lands on a Web site. Magnetic's technology then determines the users who convert the best for specific brands and on sites.
Magnetic is not the only company serving up one or both. Companies such as Microsoft claim to offer "a small volume of search remessaging," and Yahoo offers both services. Criteo CEO Greg Coleman told MediaPost the company put search retargeting on the company's product road map.
Magnetic Force gives advertisers insight into customer behaviors and habits, such as the ability to gain insights into conversions by keyword, reach customers with specific brand messages, and optimize audience targeting to drive return on investment.