What is Retargeting?

Retargeting, also known as remarketing, is a form of online advertising that targets users who have previously visited a website or interacted with a brand but did not complete a desired action, such as making a purchase.

Retargeting works by using cookies to track users’ behavior on a website and then displaying ads to them as they browse other websites or use social media.

The goal of retargeting is to bring users back to the website and encourage them to complete the desired action.

Retargeting is an effective way to re-engage potential customers who have shown interest in a product or service but did not convert during their initial visit.

By reminding users of their interest and providing personalized messages, retargeting can help increase conversions and improve the overall effectiveness of marketing campaigns.

Importance of Retargeting

• Increases Conversions: Retargeting is one of the most effective ways to increase conversions. By targeting users who have already shown interest in a product or service, businesses can remind them of their initial interest and encourage them to complete a purchase or other desired action.
• Improves Brand Recall: Retargeting helps improve brand recall by keeping the brand in front of users even after they leave the website. Repeated exposure to the brand can increase the likelihood that users will return and make a purchase.
• Targets Interested Users: Retargeting focuses on users who have already visited the website, which means that these users are more likely to be interested in the brand’s products or services. This makes retargeting a highly targeted and efficient form of advertising.
• Cost-Effective: Since retargeting focuses on users who have already expressed interest in the brand, it is often more cost-effective than other forms of advertising. The likelihood of conversion is higher, which means that the return on investment (ROI) is typically better.

How Retargeting Works

1. Tracking Users with Cookies: When a user visits a website, a small piece of code called a cookie is placed in their browser. This cookie tracks the user’s behavior on the website, such as the pages they visited and the products they viewed.
2. Creating Audience Segments: Based on the data collected by cookies, businesses can create audience segments for retargeting. For example, users who added items to their cart but did not complete the purchase can be grouped into a “cart abandoners” segment.
3. Displaying Retargeting Ads: Once the audience segments are created, businesses can display retargeting ads to these users as they browse other websites or use social media. The ads are personalized based on the user’s previous behavior, making them more relevant and engaging.
4. Encouraging Conversion: The goal of retargeting ads is to bring users back to the website and encourage them to complete the desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form.

Types of Retargeting

• Site Retargeting: Site retargeting involves showing ads to users who have visited a specific website but did not convert. These ads are displayed as the users browse other websites, encouraging them to return and complete the desired action.
• Search Retargeting: Search retargeting targets users based on their search behavior. If a user searches for specific keywords related to a product or service, they may see retargeting ads for that product or service even if they have not visited the brand’s website.
• Email Retargeting: Email retargeting involves sending targeted emails to users who have interacted with a brand but did not convert. This can include users who abandoned their cart or who opened an email but did not take further action.
• Social Media Retargeting: Social media retargeting involves displaying ads on social media platforms like Facebook, Instagram, and LinkedIn to users who have previously interacted with a brand. These ads are often highly engaging and encourage users to revisit the brand’s website.
• Dynamic Retargeting: Dynamic retargeting involves showing personalized ads based on the specific products or services that users viewed on a website. These ads often include images of the exact products the user showed interest in, making them highly relevant and effective.

Best Practices for Retargeting

1. Segment Your Audience: Not all users are the same, and segmenting your audience can help create more effective retargeting ads. For example, users who abandoned their cart may require different messaging than users who only visited a product page.
2. Use Frequency Caps: Retargeting ads should remind users of their interest, but they should not become annoying. Use frequency caps to limit how often users see your ads, ensuring that the ads do not become intrusive.
3. Create Personalized Ads: Personalization is key to effective retargeting. Use data on the user’s previous behavior to create ads that are relevant to their interests. Dynamic retargeting, which displays the exact products users viewed, can be particularly effective.
4. Offer Incentives: Offering incentives, such as discounts or free shipping, can help encourage users to return to the website and complete their purchase. Incentives can be particularly effective for users who abandoned their cart.
5. Test and Optimize: Regularly test different versions of your retargeting ads to see what works best. Experiment with different messaging, visuals, and call-to-action (CTA) to optimize your campaigns and improve performance.
6. Align Ads with the Customer Journey: Tailor your retargeting ads to match the stage of the customer journey the user is in. For example, users who have viewed a product page may need more information, while users who abandoned their cart may need a special offer to complete their purchase.

Tools for Retargeting

• Google Ads: Google Ads offers retargeting options through the Google Display Network, allowing businesses to show ads to users as they browse other websites.
• Facebook Ads: Facebook Ads allows businesses to create retargeting campaigns on Facebook and Instagram, helping re-engage users who have interacted with the brand.
• Criteo: Criteo is a popular retargeting platform that uses machine learning to deliver personalized ads to users based on their behavior.
• AdRoll: AdRoll is a retargeting platform that helps businesses create and manage retargeting campaigns across multiple channels, including display, social media, and email.

Challenges of Retargeting

• Ad Fatigue: Users may become tired of seeing the same retargeting ads repeatedly, leading to ad fatigue. This can result in a negative perception of the brand and reduced effectiveness of the ads.
• Privacy Concerns: Retargeting relies on tracking user behavior through cookies, which can raise privacy concerns. Businesses must ensure that they comply with data privacy regulations, such as GDPR, and provide users with clear information about how their data is being used.
• Balancing Frequency: Finding the right balance between reminding users of their interest and not overwhelming them with ads can be challenging. Too many retargeting ads can annoy users, while too few may not be effective in driving conversions.
• Attribution Complexity: Retargeting is often just one touchpoint in a longer customer journey, which can make it difficult to attribute conversions accurately. Multi-touch attribution models can help provide a more complete picture of how retargeting contributes to conversions.

Final Thoughts

Retargeting is a powerful tool for re-engaging users who have shown interest in a brand but did not convert.

By displaying personalized ads to users as they browse other websites or use social media, businesses can remind them of their initial interest and encourage them to return and complete the desired action.