Retargeting

What is retargeting?

Retargeting is a digital marketing strategy designed to recapture the attention of users who have previously interacted with a website or a digital platform but did not make a purchase or complete a desired action. This technique allows marketers to target these potential customers with specific ads, encouraging them to return to the website and complete a transaction or action.

Retargeting vs remarketing

While often used interchangeably, retargeting and remarketing have distinct differences. A retargeting strategy efforts primarily focus on serving ads to potential customers based on their previous online actions across different digital platforms.

In contrast, remarketing typically involves re-engaging with past customers through email campaigns, aiming to encourage repeat purchases or actions.

Retargeting on Search & Display channels

Retargeting on search and display channels allows businesses to place ads in front of users as they browse the internet or search for related products or services. This method is highly effective in keeping the brand at the forefront of potential customers' minds, increasing the likelihood of them returning to make a purchase.

Retargeting in email email marketing and social media

Retargeting through email and social media involves sending targeted messages or displaying ads to users on social platforms. This strategy leverages user data to deliver personalized content, making the message more relevant and increasing engagement rates.

Most email marketing software will allow you to set up automated emails for abandoned carts, abandoned browsing, or just reminders of vouchers, for example. That is one of the most common retargeting examples, as it uses technology to automatically re-connect with potential customers and bring them back into the marketing funnel.

How retargeting works

The retargeting process is largely the same across the board: you display ads to people who have somewhat interacted with your brand, whether on your website or socials.

There are two main types of retargeting processes, both of which could be considered as "behavioral retargeting", but which are implemented differently, according to the specific source of data you use.

Pixel-based retargeting

Pixel-based retargeting is an online advertising strategy that uses a tiny piece of code (a pixel) placed on a website to track visitors. When a user visits the site, the pixel installs a cookie in their browser, allowing marketers to target the user with ads on other platforms.

List-based retargeting

List-based retargeting works by using lists of customer contacts, typically acquired through newsletter signups or other interactions. Marketers can upload these lists to retargeting platforms to serve targeted ads directly to these individuals.

For instance, some retargeting providers offer the option to upload customer email lists, which can then be used to target ads specifically to those individuals. This can be an effective way to reach past customers or engage with a specific audience segment.

Advantages of retargeting campaigns

There are many reasons ads retargeting are quite beneficial for a lot of types of business. Some of the most important ones include:

Connecting with target audiences multiple times

Retargeting efforts enable brands to connect with potential customers multiple times across different channels, increasing brand recognition and keeping the brand top of mind.

Cost-effective advertising

Compared to other forms of digital advertising, retargeting can be a cost-effective option. Since you are targeting users who have already expressed some level of interest, you can focus your ad spend on a more qualified audience, maximizing your marketing budget.

Boost in conversion rates

By targeting users who have already shown interest in a product or service, retargeting can significantly boost conversion rates, as these users are more likely to complete a purchase.

Marketing personalization

Retargeting allows for high levels of personalization in marketing efforts, presenting users with ads that are directly relevant to their interests and past behaviors. For instance, dynamic retargeting scan display ads featuring products that users have previously viewed on a website, increasing the chances of conversion.

Meeting customers where they are

With the ability to target users across various platforms, retargeting ads meet customers where they spend their time, whether it's browsing the web, checking emails, or scrolling through social media.

Generating awareness

Ads retargeting is an effective strategy for generating awareness about a brand or product, especially for new launches, by keeping the brand visible to potential customers.

Reducing cart abandonment

By targeting users who have left items in their shopping carts, retargeting campaigns can effectively reduce cart abandonment rates, encouraging customers to complete their purchases.

Very good for new launches

Retargeting campaigns are particularly beneficial for new product launches, as they allow brands to target interested customers directly, ensuring high visibility and engagement from the start.

Best practices for retargeting

To make the most out of your retargeting efforts, consider these best practices for retargeting:

Segment your audience

Not all website visitors or users are the same. By segmenting your audience based on their interactions or interests, you can deliver more targeted ads and messages. This approach ensures that you are reaching the right people with the most relevant content.

Set frequency caps

While retargeting is effective, bombarding users with too many ads can be counterproductive. Set frequency caps to ensure that your ads are not overly intrusive or annoying to the user. This helps strike a balance between reminding users and respecting their online experience.

Track and analyze performance

Regularly monitor and analyze the performance of your retargeting campaigns. Look at metrics such as click-through rates, conversion rates, and return on ad spend to understand what is working and what needs improvement. Use this data to optimize your campaigns and maximize your results.