Approximately 2% of all first-time visitors to an online store are converted into buyers. This means that a significant percentage of online visitors are potentially lost. Ad Retargeting is a very effective method for converting the people from ‘just browsing’ into paying customers.
How does it work?
Ad Retargeting works by first inserting a piece of Javascript code onto a business’ website that the customers is visiting (an online store for example). This code then creates a list of people that visit the site by placing anonymous retargeting “cookies” in their browser. This list allows retargeting vendors to display retargeting ads to the potential customers as they visit other websites.
The end result is that when customers are off browsing other websites, ads from the original site will appear. This has the benefit of ensuring constant brand reinforcement during the browsing experience. The ads can be specifically targeted to the type of product the customer was viewing (such as a jeans) and the price. This is particularly effective when customers are viewing multiple sites in order to find the best deal for a product. For example, a customer may be looking for jeans online with a specific clothing retailer and then decide to look online on eBay. As they visit eBay, an ad from the clothing retailer would appear on the page, giving them an immediate reference point for the product and price. It can often be these last minute moments that decide the direction a sale will go in.
Why use it?
The main reason to utilise ad retargeting is to establish a connection with people that have already shown interest in your website. Unlike other forms of advertising that often use a ‘cold’ approach, ad retargeting already has a foot in the door. Here are some interesting facts about its effectiveness:
- In a study that evaluated various strategies in terms of the average lift in search activity generated for an advertised brand, retargeting represented the highest lift in trademark search behaviour at 1046%. (prnewswire.com)
- 46% of search engine marketing professionals believe retargeting is the most underused online marketing technology. (cmo.com)
- Almost 3/5 online buyers said they notice ads for products they looked up on other sites (emarketer.com).
- Retargeting can boost ad response up to 400% (cmo.com)
- Online consumers are open to receiving retargeting ads. While the majority of consumers (60%) remain neutral about the topic of retargeting ads, 25% enjoy them because they remind them of what they were looking at previously. (neolane.com)
Ad Retargeting represents one of the most advanced forms of advertising available. It is truly unique in the sense that it has the potential to turn a ‘one-off browse’ into a sale no matter where the consumer goes. We would highly recommend considering Ad Retargeting in your next online campaign.
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