Why Do We Need Your Customer Base for Advertising?

Every business understands the value of their customers’ private data and may hesitate to share it with PPC agencies. However, what if we told you that using this data can improve your online advertising performance?

In this article, we’ll take a deep dive into the topic and shed light on the importance of using your customer base for advertising purposes. We want to alleviate any concerns you may have by assuring you that using this data is safe and completely legal.

So let’s explore how tapping into your customer data can take your online advertising and business to new heights.

Become Familiar with Retargeting

A PPC agency may need your customer base for several reasons. However, the most common reason is for retargeting. But what is retargeting? Let’s find out together! 

Retargeting is a marketing strategy used by businesses to reconnect with users who have previously interacted with their website, mobile app, or other digital platform. It involves targeting those individuals specifically through personalized ads, aiming to re-engage them and encourage further action.

At first glance, the concept of retargeting may seem simple. However, a closer look reveals a level of complexity.

In fact, there are two different types of retargeting.  One type can be implemented regardless of your customer base, while the other relies on customer data. Let’s take a closer look at each type.

Retargeting with Third-Party Data

Retargeting with third-party data is a type of retargeting that involves using cookie files to re-engage users who have previously interacted with websites. 

These cookies are small text files stored on a user’s browser. These files contain information about their browsing behavior, preferences, and website interactions. By using cookies, companies can track users across different websites and deliver personalized ads based on their past online activities. 

A prime example of retargeting with third-party data is the practice employed by Google Ads. By using cookies, Google Ads can monitor users’ online behavior and serve targeted ads to people who have visited certain websites or shown interest in certain products or services.

However, it’s important to note that the landscape of online advertising is evolving. In recent years, there have been growing concerns about privacy and data protection, leading to discussions about the future of third-party cookies. Many technology companies, including Google, have recognized the need for more privacy-focused practices.

In fact, Google has announced its commitment to a more privacy-first web and has plans to phase out support for third-party cookies in its Chrome browser. 

Nonetheless, it’s essential to consider an undeniable truth: the cost of acquiring a new customer is significantly higher compared to retaining an existing one. Studies show that acquiring a new customer can be 5 to 25 times more expensive. This emphasizes the importance of exploring alternative approaches to engage with customers, specifically by leveraging first-party data. 

Retargeting with First-Party Data

First-party data is data collected directly from websites or interactions with customers. This valuable data is obtained through various touchpoints, including newsletter sign-ups, customer registrations, and more. 

Businesses can collect different types of data. However, in the concept of advertising, we are most interested in collecting emails. For example, by using emails, we can build a customer list in Google Ads and run PPC campaigns to reach that specific audience. 

While it is encouraging to have an alternative to relying on third-party data, businesses often express concerns about using this type of retargeting strategy. Privacy and data security are common worries voiced by businesses who refer to us. However, after we provide a clear explanation of how the process works and reassure them about Google’s data protection measures, they feel more confident and agree to use this approach. 

If you have the same concerns, check out the article from Google and see for yourself how Google handles privacy and security. Understanding the measures taken by a trusted platform like Google can help alleviate any concerns you may have.

Successful Stories of Using First-Party Data

Still have some doubts about whether to use retargeting with first-party data or not? Check out the next success stories and see why this type of retargeting is worth your attention. 

Case 1: Success of Guitar Center 

Guitar Center, a music retailer, implemented a retargeting strategy using its first-party data. By collecting the customers’ emails and adding them to Google Ads, the company launched search campaigns specifically targeting this engaged audience. 

The results were nothing short of impressive. During a five-month experiment, Guitar Center saw an astounding 60% increase in click-through rates and an impressive 50% increase in conversion rate. 

We have just given you a brief overview of Guitar Center’s successful strategy. However, if you want to dive into the details, check out the article.

Case 2: Success of The Children’s Place

The Children’s Place, a children’s apparel retailer, successfully reconnected with its past customers during the critical back-to-school season by leveraging its valuable first-party data.  

By using this data, The Children’s Place launched search campaigns and achieved terrific results:

  • 287% increase in return on investment (ROI);
  • 153% increase in conversion rate;
  • 237% increase in click-through rate;
  • 40% decrease in cost-per-click.

While we’ve provided you with a brief overview of The Children’s Place’s strategy, we encourage you to explore the article for a deeper understanding of the approach. 

Final Thoughts

As you can see, using customer data for advertising can significantly transform your online advertising performance. 

By effectively using retargeting techniques and leveraging both first-party and third-party data, you can create highly personalized and targeted ad campaigns that deliver remarkable results while respecting privacy.

At Visible Webs, we recognize the critical importance of using customer data strategically. With our expertise in both types of retargeting, we are well-equipped to assist you in launching successful campaigns using third-party data or tapping into the full potential of your first-party data.

So, don’t miss out on the chance to maximize the effectiveness of your online advertising efforts. Reach out to us today and take your online advertising game to new heights!