Retargeting has become one of the most talked about marketing strategies in 2013. Despite the amount of exposure this marketing tactic has received, many websites are still asking the question – what is retargeting? Here we will look at how retargeting works and whether you should be using it in your business.
Most people will not buy the first time they visit your website. In fact studies show that as little as 2% of visitors will make a purchasing decision on their first visit. Many of those who don’t buy on the first visit never return. Retargeting is an online advertising tool that helps to bring back those other 98% and convert them into buying customers.
What is Retargeting?
Retargeting uses “cookies” in order to follow visitors once they leave your website. When those potential customers visit another website that is part of the same advertising network ads for your website will be displayed. This ensures that ads are only displayed to those people already been exposed your website and brand.
Why is Retargeting Effective?
People who have visited your website have already indicated that they have some level of interest in what you are offering. By displaying ads to only these people your marketing will be much more targeted. That means fewer wasted dollars on ads displayed to people who may have no interest in what you’re offering. Retargeting also helps to bring back potential customers who may have been interested in making a purchase but have either forgot about your website or are unable to find it again.
There are a number of reasons why people choose to abandon the website before completing a purchase. In some cases they may have been distracted by another person or something that they needed to take care of. It is not always that they aren’t interested in buying. People also more likely to purchase if they have repeated exposure to the brand. By seeing the same advertising for the same product people will likely to choose this particular product.
How Retargeting Works in Practice
Imagine that you decide that you want to purchase a Juicer. Your budget for your juicer is between $300 and $500. During your research phase you visit a number of online websites that sell juicers. One of these sites users retargeting. While you’re there the website unobtrusively places a small piece of code in your Internet browser cookies. However the juicer on the website that uses retargeting, while attractive, is a little bit out of your budget range.
For the following week you forget about your idea of purchasing a juicer, but no matter where you go on the internet you are frequently exposed to ads from the website that uses retargeting. One of these ads presents the juicer you liked at a discounted price. The juicer is now within your budget and so you decide to make a purchase. You click on the ad and ares sent back to the website where you receive the discount and buy the juicer.
Should You be Using Retargeting?
Retargeting has been proven to be effective from wide range of products and services. According to study conducted by SeeWhy 26% of customers who are exposed to retargeting will return to the website. If retargeting is not used only 8% returned to the website.
However retargeting needs to be used judiciously. Too much exposure to a particular ad can have a negative impact on the brand. If the customer has been exposed to the same ad for a number of weeks and is not returning them are unlikely to ever do so. You should also not retarget ads to customers who have already made a purchase of that particular product.
If you avoid these practices you’ll find retargeting can be highly effective without damaging your brand. Finally, remember that retargeting is only a part of your overall marketing strategy. Having an optimised marketing funnel in place will allow you to make the most of your retargeting.