Retargeting, also known as remarketing, is a form of online advertising that can help you keep your brand in front of bounced traffic after they leave your website.
For most websites, only 2% of web traffic converts on the first visit. Retargeting is a targeted advertising technology and tactic designed to help companies reach the 98% who don’t.
It works through a small, unobtrusive and unnoticeable piece of code (or pixel) that is place on your website and drops an anonymous browser cookie to retarget visitors. Later, when your cookied visitors browse the web, the cookie will let your ad provider know when to serve ads to only people who have previously visited your site.
AdRoll, ReTargeter and SiteScout are companies that offer retargeting services. Ad platforms like Google Adwords and Facebook ads offer it directly to their advertisers as a feature of their ad buys.
But there are pros & cons and plenty of fact vs fiction.
Here are 10 retargeting myths vs realities:
- MOST MARKETERS KNOW ABOUT IT AND USE IT: Only 25% of marketers have a dedicated budget for retargeting. 10% of agencies and 9% of brands have it as a separate budget.
- RETARGETED ADS ARE JUST STARTING TO CATCH ON IN SOCIAL MEDIA: 67% of online advertisers are now using Facebook ads for retargeting. Social media is a sophisticated and widely used channel.
- MOST PEOPLE HATE BEING RETARGETED: Actually, it’s the opposite. 30% of consumers have a positive or very positive reaction to retargeted ads, vs. 11% who feel negatively about them. The greatest percentage, though—59%—have a neutral reaction.
- IT REACHES ONLY PEOPLE WHO HAVEN’T BOUGHT YOUR PRODUCT OR SERVICE: It could just as likely be reaching current customers too. That’s because the retargeting code triggers for any visitor who has gone to your site, viewed one page and left. There is no way for the code to discriminate if this is someone who has never bought or already brought your product.
- RETARGETED ADS COSTS THE SAME AS REGULAR ADS. Not necessarily. If you are using a service, definitely not. Since you are likely to be paying a premium to do retargeting, make sure you know how many more people will have to convert to make the investment worthwhile.
- AD PERFORMANCE IMPROVES: Retargeted customers are 3 times more likely to click on your ad than people who haven’t interacted with your business before. Retargeting can boost ad response up to 400%.
- SOME PEOPLE ENJOY RECEIVING RETARGETED ADS: 25% of online buyers enjoy being retargeted because it reminds them of what they were looking at. 60% of U.S. online buyers say they notice ads for products they look up on other sites.
- RETARGETED CUSTOMERS CONVERT MORE OFTEN: Retargeted customer are 4X more likely to convert than new customers. CPG company Kimberly-Clark relies on retargeting, saying it is seeing 50 to 60 percent higher conversion rates among consumers who have been retargeted.
- MANY MARKETING BELIEVE IT SHOULD BE USED MORE OFTEN: 46% of search engine marketing professionals believe retargeting is the most underused online marketing technology.
- IT’S BASED ON HOW WE BUY: It takes up to 6 to 8 “touches” to turn a lead into a customer. It can take many contacts before the lead turns into a paying customer. Its greatest value may be replicates our real buying. behaviors.
Do these myths vs reality help? Is it for you? Does your business need help putting retargeting to use?