Have you ever shopped online and left a particular website only to have the item you were looking at follow you around as you visit other sites? Most people think it is coincidence, but it is actually a digital marketing tool called retargeting.
So, what is retargeting?
It is a form of online targeted advertising that is based on consumers’ previous online actions. There are two main types of retargeting: pixel-based and list-based. The way each works is slightly different, and each has different advantages based on your campaign goals. Retargeted display ads are associated with high click through rates (ten times industry average) and led to a 1046% increase in brand search*.
Pixel-based retargeting is a way to redisplay your material based on people who have visited or interacted with your website. A pixel, sometimes called a tag, is a snippet of code that can relay information back to a company about user’s behavior to help you measure, optimize and build audiences for your ad campaigns. Getting these tags placed on your site might require some web developer assistance.
List-based retargeting works after you already have someone’s contact information in your database such as an email addresses and phone numbers. This information is used to connect to hundreds of other data points and serve targeted ads when the consumer is surfing the web. These lists are uploaded to the ad platforms themselves.
Why use retargeting?
Retargeting helps generate greater online sales by keeping a brand front and center and brings casual shoppers back when they are ready to make a purchase. Website visitors who are retargeted with display ads are 70% more likely to convert on your website*. Every time a consumer sees an ad or product, the brand gains traction and increased recognition. It helps spend your ad dollars wisely because it is targeting consumers already familiar and interested with your brand. Facebook has one of the best digital platforms for retargeting and is one of the biggest players in the digital advertising world. To provide some perspective, Facebook blows all other digital properties out of the water when it comes to display ad spending, capturing 35.4% of total display advertising spending in the U.S. – $11.93 billion. Second place, Google, will take in about $4.79 billion.
A few steps to get the most out of your retargeted ads:
- Have a clear call-to-action and provide an offer
- Customize the ad to each targeted group
- Update creative to keep things fresh and get different products in front of consumers
- Remember, people don’t tend to buy on the first visit
Retargeting can be used to sell products, increase attendance at an event or encourage consumers to take a specific action on your website such as signing up for your newsletter. It is a powerful branding and conversion optimization tool, and is best executed as part of a larger digital strategy. Ensure a successful campaign by using one or more tools/platforms to drive traffic to your site and retarget consumers to reinforce your brand, reengage your shoppers, and get the highest return out of your traffic.
*Source: Your Escape from 9 to 5