Stuart Marler
Stuart Marler 1 December 2015
Categories Advertising

What Is Remarketing And Why Is It So Powerful?

Retargeting is designed to assist you in getting across to the 98% of users who do not convert immediately.

Consider this. You’ve visited a website and thereafter, you start to see adverts of the same website wherever you go. Would you refer to this as merely a coincidence? No. It is known as remarketing/retargeting.

Retargeting has become a general practice in the world of advertisement over the past couple of years and is a form of online advertisement intended to redirect visitors back to a website. 2% of web visitors based on convert to a sale or other action on the first visit. This is extremely low taking into consideration the average traffic volume an average site pulls. Consequently, retargeting is designed to assist you in getting across to the 98% of users who do not convert immediately.

How can Remarketing ads help small businesses?

Should you wish to increase your conversion rate, there are lots of things you can do. For instance, you could boost your traffic to get more visitors; you could make your offers more attractive; you could improve your website, such as making your calls to action more prominent; you could do several activities to enhance your local conversion rates.

Another option is advertisement. Should you have money for advertising, you may choose to utilise retargeting ads. The idea behind retargeting is to get a higher percentage of visitors to convert to a sale. Remarketing ads assist to remind your previous visitors about your site after they have left, increasing the chances that they will return and buy. The act of serving them with reminder ads is an attempt to keep your brand in their cognitive zone, allowing your brand to sink in, with the aim of calling them back.

Retargeted ads concentrate on lost traffic. These ads may well be your final hope before the customers go beyond the point of no return. None of the above methods are mutually exclusive. You could do any or all of these methods to enhance your conversions – that is, to improve your offering, increase your traffic, enhance your site and/or retarget ads.

How Remarketing Works

Retargeting works in a very simple way from the advertiser’s viewpoint. The website of the advertiser has a piece of JavaScript code, which sets a cookie in the visitor’s browser. Therefore whenever the visitor visits other websites, the cookie makes sure that the ads are displayed only to those who have earlier visited the advertiser’s website. Nowadays, retargeted ads have become well-known. It can be delivered by means of Google AdWords (Google refers to it as remarketing). Now even Facebook and LinkedIn possess retargeting as an element of their advertisement tools.

Retargeting is practiced anonymously. Just because a website visitor is viewing a banner, it does not imply the advertiser is getting any personal details concerning the visitor. That advertiser simply wants the visitor who was there to check their adverts and be reminded to revisit and take action.

In fact, among the best parts of retargeting is, you need not know who the “prospect” is. Unlike email marketing that depends on a customer’s email address to continue nurturing until they buy, retargeting is independent of any contact with your visitors.

Does Remarketing work for small businesses?

The numbers are remarkable. Econsultancy reports that lowers its shopping cart abandonment rate by 40% thanks to retargeted emails.

Available evidence shows that there is proof in numbers: Zen Desk – a web-based customer support software for businesses – used retargeting to realise the following: a massive 1317% ROI (return on investment) from all conversions combined, a 1160% ROI in view-through conversions, and a 57% ROI from click-through conversions.

Best practices for retargeting:

(1) Use retargeting with clear goals.

Do you aim to increase brand awareness, boost sales, increase newsletter signup or registrations or perhaps some other call to action? Your goal(s) will dictate how you implement retargeting ad campaigns.

(2) Use limited remarketing ads.

Smart advertisers do not overload that visitor with millions of ads for weeks which may later annoy the visitor. Rather, limit the number of ad impressions and number of days to display adverts to previous visitors. Remember, you are trying to positively impress them and not to irritate them.

(3) Never waste money with poor retargeting.

As a website visitor, has it ever happened to you that you visit a site, you purchase something, and afterwards you are flooded with adverts for the very thing you bought for the next four days? Does that site really anticipate you to go back four days later and purchase MORE of the same thing? It won’t happen!

By segmenting your website, you can retarget more wisely based on the buying process that the visitor attained prior to leaving your website. Furthermore, rather than serve a banner ad, you can serve ads targeting shopper preferences or depending on their last activity on your website.

How can can you make remarketing work?

Remarketing is a great opening for small businesses; however it does not outweigh other digital advertising strategies. All the top strategies for landing page optimisation, blog posts, ads, product pages and shopping carts still apply. Likewise, analytics and data usage are essential components, as are understanding visitor’s behaviour.

Retargeting is a double-edged sword. If done correctly, it is an exceptionally powerful opportunity for businesses (especially small businesses) and marketers to boost their exposure, conversions, and pump up sales. However if it is carried out wrongly, it could be a disaster.

For more information on how remarketing ads can be of use to your business, see our Remarketing Services page.


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