What is retargeting?
Retargeting is an online display advertising strategy that a business would employ that serves ads based on a consumer’s past actions or behavior to entice that visitor to come back to their site.
Not to be confused with Remarketing:
Remarketing is much broader and includes reengaging with customers through emails or direct mail to name a few. For example, if a customer abandons an online shopping cart, that business may send them an email reminding them of the contents of the shopping cart. This kind of advertising is so personalized that it often has a much better chance of reengaging a customer than a generic ad.
How does Retargeting it work?
Why would you use it?
Only 2% of online consumers convert on the first visit, which means nearly all traffic that visit a site for the first time leave without doing anything.
Marked Increases in 3 Areas:
Awareness: Boost brand awareness and stay top of mind
Nearly three out of five U.S. online buyers said they notice ads for products they looked up on other sites.
A comprehensive study that compared various online display strategies showed that retargeting generates the strongest lift in search activity for an advertised brand at 1,046 percent.
Engagement: Drive prospects further down your sales funnel
Retargeting can boost ad response up to 400 percent.
The average click-through rate for display ads is 0.07 percent and the average click-through rate for retargeted ads is about 0.7 percent.
Retargeted ad campaigns show engagement rates 2.5 to 3 times higher than untargeted ad campaigns among the same customer base.
Conversion: Increase ROI
Web site visitors who are retargeted with display ads are 70 percent more likely to convert on your website.
Combining prospecting strategies with retargeting can lead to 147 percent higher conversion rates among some industries, like customer and financial services.
72 percent of ecommerce shoppers abandon their shopping carts before making a purchase. Without retargeting, only 8 percent return to purchase the product. With retargeting and other forms of remarketing, that percentage jumps to 26 percent.
Four Common Retargeting Practices
Site-based retargeting (most commonly used)
Serving ads to people who visit your website after they leave.
Search retargeting (second most commonly used)
Serving ads to users (existing relationship or not) who search for one of your keywords while browsing the web.
Serving ads to people who open your emails.
Serving ads to people with nothing but an email or mailing list.
Benefits of Retargeting
Brings back bounced traffic and shoppers who have abandoned their carts.
Enables B2B companies to stay in front of leads during longer purchase cycles.
Generates greater online sales by repeated exposure, reinforcing your brand until consumers are ready to act.
Other Forms of Retargeting
Employing retargeting methods using social media channels. Facebook offers Facebook Exchange (FBX) and Facebook Custom Audiences, while Twitter offers Twitter’s retargeting
|Total subscribers||1.2 billion||500 million|
|Total unique visitors per month||167 million||39 million|
|Age range with maximum user share||45-54 (30%)||25-34 (24%)|
|Female: Male ratio||1.38||1.5|
|Conversions per click through||2.6%||1.1%|
|Average time spent per session||12 minutes||36 minutes|
The process of collecting information about the audience based on previous search terms used, sites visited and general browsing habits…then delivering similar ads based on this information.
What Consumers Think
In a 2013 survey, 30 percent of consumers have a positive reaction to retargeted ads versus 11 percent who feel negatively. 59 percent have a neutral reaction.
3 Main Reasons Why Consumers Click
Being drawn to the product (37 percent).
Convenient way to visit a site the user already intended to visit (28 percent).
Desiring more information on the product (21 percent).
What Marketers Think:
One in five marketers now has a dedicated budget for retargeting.
Forty-six percent believe retargeting is the most underused online marketing technology.
Fifty-six percent list FBX as one of the types of retargeting tactics that they use – up from forty-one percent in a previous survey.
Sources: Adroll, eMarketer, Adobe CMO, Social Media Statistics 2013, SeeWhy, comScore