Weekly Tip: How Can Retargeting Improve the Return on Your Marketing Investments (ROMI)?
Retargeting (also known as remarketing) is getting more and more popular nowadays. Have you experienced this? After searching certain products on an E-Commerce site without completing the payment process, in the following days you would probably see the ads from the E-Commerce site many times no matter which sites you might go. If so, then you are remarketed. Retargeting can help advertisers to reach people who previously visited or showed interested in certain products, and remind these users to come back and take action. Many advertisers start to realize the importance of retargeting. Today you would have the chance to know more about retargeting and improve the ROMI on your ad spend.
What is Retargeting Exactly?
Retargeting enables advertisers to target audiences based on their previous behaviors, for example, visiting certain webpage or searching certain items without completing a sale or action. Retargeting is tailor-made for performance-based campaign. According to AdRoll, only 2% of online shoppers convert on the first visit to an E-Commerce site in general. Therefore, advertisers should make use of retargeting to bring back the rest 98% by displaying retargeting ads to them while they visit other sites online, to increase the sales and elevate the ROMI.
How does Retargeting Work?
Major Forms of Retargeting
Display (Site) Retargeting
Marketers can bring customers back to their sites with targeted display ads across multiple ad exchanges, networks and other resources.
Nowadays customers spend a lot of time on social media. Facebook enables marketers to remarket Facebook ads (News feed ads & RHS ads) to potential customers who visited their sites previously. Based on the test result from Shutterfly, the ROMI increased almost 4 times with a post-click conversion rate of 9.6% after introducing FBX Retargeting campaign.
Search retargeting can help marketers to target audiences with display banner ads based on their previous search engines queries. Unlike display (site) Retargeting, the audiences that search Retargeting targeted have likely never been to a marketer´s site before.
Why Retargeting Can Improve the ROMI for Marketers?
Retargeting generates leads and more online sales by enforcing brand image among potential customers, and brings them back when they are ready to take action. Since these “window shoppers” already showed their interests, so it is more cost-efficient for marketers to remarket them than launching general online advertising campaigns. Retargeting campaign combines right audiences, right ads and right places, therefore it is not difficult for you to understand why it works like a charm and generates high CTR and conversion rates for marketers.
When launching Retargeting campaign, it is recommended that marketers segment their audiences and create different cookie lists. Each group should be targeted with tailor-made retargeting ad creative and make sure it is relevant. For these audiences who already converted, they should be excluded from the retargeting campaign since they are unlikely to make more similar purchases in the near future.
Moreover, it is better to have a call-to-action or promotion offer on the Retargeting ad creative to improve the engagement.
Furthermore, marketers should pay attention to the length of time windowsaccording to the feature of their products/services. For luxury goods, cars, properties and so on, the retargeting period should be longer since those purchases usually take some time to decide. Comparatively, people try to book flight or hotel should be retargeted right away with intensive frequency since these decisions usually are made within a short period of time.