Businesses are constantly battling for consumer attention. Every visitor to your website represents an opportunity – a potential customer. But what happens when they leave without making a purchase or signing up? Are they lost for good? The answer is no, thanks to the power of retargeting. This marketing strategy allows businesses to bring back lost prospects and convert them into loyal customers.
What is Retargeting?
Retargeting (also known as remarketing) is a digital marketing technique designed to re-engage users who have previously interacted with your brand. These interactions could be anything from visiting your website, clicking on an ad, or engaging with your content on social media. By using cookies or tracking pixels, businesses can serve personalized ads to these users as they browse the web, reminding them of the product or service they showed interest in.
Unlike standard display advertising, retargeting focuses on users who are already familiar with your brand. This significantly increases the likelihood of converting these users because they are further along the buyer’s journey. If you want to learn how to set up retargeting as part of your campaign, be sure to check out our published blog post titled How to Harness the Power of Retargeting in Digital Marketing.
Why Prospects Don’t Convert on the First Visit
Understanding why users leave without converting is key to understanding why retargeting is so important. According to a study by Episerver, a staggering 92% of consumers visit a brand’s website for the first time for reasons other than making a purchase. They could be in the research phase, comparing prices, or simply browsing out of curiosity.
The Baymard Institute also reports that the average cart abandonment rate is 69.57%, meaning more than two-thirds of online shoppers add products to their carts but leave without completing the purchase. This highlights the importance of having a strategy to re-engage these visitors before they slip through the cracks entirely.
How Retargeting Works
Retargeting leverages user data to show relevant ads to individuals who have previously engaged with your website. Here’s a breakdown of how it typically works:
1. Tracking
When a visitor lands on your website, a cookie is placed in their browser. This cookie contains anonymized information about the user’s interaction with your site, such as which pages they viewed or how long they stayed.
2. Ad Serving
Once the user leaves your site, they continue browsing the internet. Through platforms like Google Ads or Facebook Ads, you can serve targeted ads to that user based on their previous behavior. For example, if someone viewed a specific product on your eCommerce site but didn’t complete the purchase, you can serve them an ad showcasing that same product or related items.
3. Personalization
One of the key strengths of retargeting is its ability to deliver personalized content. Ads can be tailored to reflect the exact product the user viewed, dynamic pricing, or even time-sensitive offers. This increases the relevance of the ad, making it more likely to capture the user’s attention.
4. Conversion
The goal of retargeting is to bring the prospect back to your website to complete their desired action, whether it’s making a purchase, signing up for a newsletter, or downloading a whitepaper.
Types of Retargeting Campaigns
There are various types of retargeting campaigns that businesses can leverage depending on their goals:
a. Site Retargeting
This is the most common form of retargeting. It targets users who have visited your website but left without converting. These ads are typically displayed on other websites or social media platforms as the user continues to browse.
b. Search Retargeting
This method targets users based on their search queries. It allows you to display ads to people who have searched for keywords related to your products or services, even if they haven’t visited your website yet.
c. Email Retargeting
If you have a list of users who have opened your email campaigns but haven’t taken further action, email retargeting enables you to show ads to these users as they browse online.
d. Social Media Retargeting
This is similar to site retargeting but focuses explicitly on showing ads to users who have engaged with your brand on social media platforms. Facebook and Instagram are popular channels for social retargeting campaigns.
The Benefits of Retargeting
Retargeting has become a vital strategy for marketers because it brings tangible results. Here are some of the key benefits:
1. Increased Conversion Rates
Since retargeting focuses on users who are already familiar with your brand, it naturally increases the likelihood of conversion. According to research by AdRoll, retargeted users are 70% more likely to convert than those who haven’t interacted with your brand.
2. Enhanced Brand Recall
Retargeting ensures that your brand stays top of mind. The more often a user sees your ads, the more familiar your brand becomes. Studies show that consumers need to be exposed to a brand multiple times before making a purchasing decision. Retargeting helps achieve this by keeping your products in front of potential customers.
3. Cost-Effective
Retargeting campaigns often have a lower Cost-Per-Click (CPC) compared to standard display ads. This is because retargeted ads are served to users who have already shown interest, making them more likely to click and convert.
4. Improved ROI
Because retargeting focuses on users further down the sales funnel, it tends to deliver a higher return on investment (ROI). In fact, according to a study by Criteo, retargeted ads can deliver a 10x higher Click-Through Rate (CTR) compared to display ads.
5. Personalization
Retargeting enables highly personalized advertising. Whether it’s showcasing the exact product a user viewed or offering a discount for cart abandoners, personalized ads can significantly increase engagement and conversion rates.
Best Practices for Retargeting Success
While retargeting can be highly effective, there are certain best practices that businesses should follow to ensure success:
1. Segment Your Audience
Not all users are at the same stage of the buying journey. Some may have just visited your homepage, while others may have abandoned a shopping cart. By segmenting your audience, you can tailor your messaging and offers to their specific needs.
2. Set Frequency Caps
While retargeting is powerful, there is a risk of overwhelming your audience if they see the same ad too many times. This can lead to ad fatigue and even annoyance. Setting frequency caps ensures that users are exposed to your ads at optimal intervals.
3. Use Dynamic Ads
Dynamic ads automatically populate with the products or services that a user has shown interest in. These ads are highly personalized and are more likely to drive conversions than generic ads.
4. Test and Optimize
Like any marketing strategy, retargeting requires constant testing and optimization. Experiment with different ad creatives, messaging, and targeting strategies to find what works best for your audience.
5. Offer Incentives
To sweeten the deal, consider offering incentives like discounts or free shipping in your retargeting ads. This can be particularly effective for users who abandoned their shopping carts due to price concerns.
Real-World Success Stories
Companies across various industries have successfully leveraged retargeting to drive business growth. For example, online retailer Zappos saw a 13% increase in conversion rates after implementing a dynamic retargeting campaign. Meanwhile, software company HubSpot increased leads by 20% using retargeting as part of their inbound marketing strategy.
Retargeting is a powerful tool for any business looking to maximize the value of its website visitors. By re-engaging lost prospects and delivering personalized, relevant ads, businesses can significantly increase conversion rates, boost brand recall, and ultimately drive revenue growth. As digital marketing becomes more competitive, retargeting should be an essential component of your marketing strategy. With the right approach, you can bring back lost prospects and turn them into loyal customers – ensuring that no opportunity is truly lost.
Get Started with Advnc Digital Today
At Advnc Digital, we specialize in helping businesses grow and scale quickly through our Fractional CMO and digital marketing services. We can guide you in integrating retargeting strategies into your marketing efforts, ensuring your ads are personalized and effective. By partnering with us, you’ll gain the expertise needed to re-engage your audience, optimize your ad spend, and drive sustainable growth in an increasingly competitive digital landscape.
