AdTech AI Files

#2 | Retargeting: The Illusion of "Performance"


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Retargeting: The Illusion of "Performance" When escalations land on my desk for low or nonexistent incremental lift, the first thing that comes to mind is targeting settings. More often than not, the culprit is the same: Retargeting past purchasers.These campaigns always look great on the surface—high conversion rates, strong ROAS, glowing performance reports you proudly share with your boss or client direct. But when we measure incremental lift, it's a different story. Compared to its ghost bid control group (similar past purchasers audience who DIDN'T see your ad), retargeting past buyers rarely drives meaningful incremental impact.Why? Because it doesn't create demand—it simply takes credit for what was already going to happen. For example: Think about your weekly grocery run—you're already loyal to many brands. Whether you see an ad or not, you're still buying that same coffee, cereal, or detergent next week. The result? A campaign that looks great on paper but delivers zero real impact for the marketer.Retargeting Feels Effective, But Is It Really?✅ It inflates attribution – Retargeting claims credit for conversions that would have happened anyway.✅ It creates the illusion of success – High CTRs, strong conversion rates, and a killer ROAS—but is it actually growing revenue?✅ It diverts budget from true demand creation – Instead of funding campaigns that attract new customers, brands chase easy wins on a dashboard.When Does Retargeting Actually Make Sense?🔹 Re-engaging high-intent users – If someone browsed but didn't act (user page views & cart abandoners), a well-timed nudge can help.🔹 Shifting the strategy for existing customers – Instead of wasting budget "converting" past purchasers, use retargeting to push brand messaging, new product launches, or loyalty incentives.The Hard TruthMarketers, it's time for a reality check. ROAS and conversion rates don't mean a thing if your incremental lift is near zero.I get it—those numbers look good on a report. They make stakeholders happy. They make media buyers feel like they're winning. But if your campaign isn't driving true incremental revenue, you're just reallocating credit, not growing the business. Stop optimizing for vanity metrics. Start optimizing for the bottom line.The only metric that matters? Incremental lift. Because if your marketing isn't creating new demand, what's the point? 🚀#MarketingMeasurement #Incrementality #AdTech #Retargeting #DigitalMarketing #GrowthMarketing #Attribution #MediaBuying #MarketingStrategy
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AdTech AI FilesBy Steven Ohrnstein