It is the desire of every marketer to find the right audience for his products, since everyone knows that the more targeted the visitor is, the more likely they are to hit the buy button. However, targeted traffic doesn’t arrive on a silver platter and you normally have to work hard to find the right audience to market your products and services to.
From a layman perspective, retargeting is simply the process of reaching out to customers who have once visited your site. This audience has experienced your website and brand and are clearly interested in what you have to offer, or they would never have ended up there in the first place!
Many people confuse retargeting with regular display ads. The difference is however as clear as black and white. While retargeting aims to recapture previous visitors and once again bring them back, regular display ads seek to introduce a product and build enough trust to secure a sale.
How Retargeting Works
Cookies are the primary components used to re-capture visitors to a given site. Cookies are simple text files stored on the visitors computer that record the places visited while. These cookies can be read by the advertising network that are offering re-targeted ads, (such as Facebook), and the information then forms the basis for retargeting campaigns.
How retargeting works is very simple. The owner of the site or the marketer usually positions a retargeting pixel either on a certain section of the site or on the entire site. When a new visitor visits your website, an anonymous cookie is placed on their computer or device. When the cookied visitor then visits any website serving ads from the retargeting network, they will serve your website ads. The end result is that your ads are only shown to users who have previously visited your website.
For retargeting to be successful, the size of the audience matters a lot. The larger the audience reached is, the higher the chances of success are. This is why Google and Facebook retargeting is so powerful.
The Effectiveness of Retargeting Campaigns
Compared to other online advertising methods, retargeting is considered the most effective.
The reason behind this is that these campaigns target visitors who already have an experience from your brand and website, and even if they left without buying anything (as 98% of all first time visitors to a website does), they are highly likely to be interested in your product or service. They act as “reminders” to your previous visitors that they might want to complete a certain action on your site.
The retargeting ads shown to these previous visitors can contain specific messages that target the conversion stage that a potential customer is in.
For instance, if the customer is in the purchase stage, the banner ads may give him various discounts or options that he can get if he now completes his purchase.
On the other hand, if he is at the evaluation point, the banner ads can be targeted at answering the most burning questions he or she may still have.
To maximize success and be as granular as possible in your approach, you can control the manner in which the retargeting ads work. The audience can be segmented and re-targeted separately.
Retargeting campaigns can concentrate on specific pages of the site or the entire site. Visitors who have started shopping, and thereby interacting with the shopping cart, can receive customized banner ads different from those visitors who are just at the product presentation stage.
Before you start a retargeting campaign, you need to ensure that you have an audience. In fact, audience building is like setting the stage for a major concert as far as re-targeting is concerned. While building the audience, it is normal and desirable to have part of the audience undergoing conversion, even without the retargeting campaign.
When a visitor makes a purchase on a first time visit, a so-called “burn pixel” will “fire”. This will remove the visitor from your retargeting audience.
Ways to Measure the Performance of Retargeting
There are two critical tools that measure retargeting performance. These are:
Click through conversions
View through conversions
Click through conversions refers to those visitors who click a banner ad and then follow through until they purchase the product.
View Through Conversion on the other hand is when a visitor is shown your ad but do not click on it, but later they return to your site and make a purchase.
Click Through Conversion Rate is measured as:
The number of clicks that have converted divided by the total number of clicks your ad received.
View Through Conversion Rate is measured as:
The number of View Through Conversions divided by the total number of impressions.
There is no doubt as to the effectiveness of retargeting. Average retargeting ad campaigns show engagement rates that are 2.5 times higher than untargeted advertising campaigns targeting the same customer base.
Studies show that retargeting can lead to 147 percent higher conversion rates in financial services for example and 128% increase in customer service industries. Whatever industry you are in retargeting will work for you, and if you haven’t yet started using it you are leaving money on the table.
In my VIP Members Area I offer comprehensive training on how to succeed with your retargeting campaigns.