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Why Do Advertisers Invest in Retargeting Campaigns?

Why Do Advertisers Invest in Retargeting Campaigns?

Written by enCOMPASS Agency

A visitor makes his or her way to your site, does a bit of exploring, and leaves without taking any action, no forms filled out, no purchase made. How do you get them to come back, so you can connect with them and at some point make the sale? This is the point that retargeting campaigns come into play. And even if you don’t know these campaigns by name, if you have spent anytime searching or researching products on the web, you have experienced retargeting campaigns.

Think for a moment how many times you have searched for a product or service, done your research, and navigated away without making your purchase. What happens next? Suddenly, ads for the very product you were viewing show up on your Facebook feed and other websites that you are perusing. Those ads are called “retargeting ads”, and many of the biggest players in the marketing and retail world utilize retargeting campaigns. The goal of retargeting is simple, retarget users who have already made a visit to your website or have searched for your product, as well as existing customers, to increase brand awareness and increase conversion rates, aka make the sale.

The Benefits of Retargeting

The truth is only about two percent of first time visitors to a website take any action. Wow! That means 98 percent leave, some never to return. These individuals are often comparison shopping between sites, which means in order to get them back, you’ll need to set your brand and your product apart from the competition. Site retargeting is a great way to do so, as is search retargeting, with statistics showing that 65 percent of people pay attention to ads for products they’ve viewed on other sites, making purchases after the fact. Showing ads to users who’ve been to your site (site retargeting), as well as those who have searched your products or services via their favorite search engine (search retargeting) has proven valuable time and time again, with statistics showing a conversion rate with an increase of nearly 150 percent with both types of retargeting campaigns.

If that’s not enough to convince you retargeting works, how about this? Nearly 30 percent of retargeted prospects will return to your site and make a purchase. That’s more than one in four customers and well worth the time, effort, and costs of retargeting. Even a bit of ‘back of the napkin’ math can verify that fact, but if you’re still not convinced of the benefits of retargeting, do the math for the last month or last quarter if you converted that many more customers. Even for a day, if 100 customers visit your site, and through retargeting 30 return and make a purchase of $50, that’s $1,500 more daily, $45,000 monthly. Convinced of the benefits of retargeting campaigns now?

Retargeting is effective, the numbers don’t lie. And as technology continues to rapidly evolve and grow smarter, retargeting will only become more effective at converting shoppers to customers.

Why Invest in Retargeting Campaigns?

Getting more sales may seem like the most obvious reason to invest, but there are many others. With retargeting, you will certainly get more clicks, conversions, and boost your return on investment, but there is more! Let’s explore how retargeting can help you grow your business successfully, including the less obvious.

  • Retargeting moves you one step closer to the opportunity to convert another customer. These leads have already sought you out, expressing interest in your product or service, or visiting your site. They are, at least, somewhat familiar with your brand. Retargeting them invites them back to your site, or for an initial site visit, where you can encourage them to complete their transactions.
  • Retargeting helps develop brand awareness by providing targeted exposure to your brand. If a potential consumer already knows about your brand, they are more likely to trust you and ‘see’ your ads. Retargeting allows you to build on existing brand awareness, increasing the odds that your leads will choose your brand when they are ready to make a purchase.
  • Retargeting allows you to make a second impression, another touchpoint which can in turn generate more sales. Remember nearly three out of four consumers are more likely to do business with a company whose name they recognize.

Are You Ready to Develop Your Retargeting Campaign?

Reach out to enCOMPASS to start the conversation. We have the expertise to help you develop an overall retargeting strategy that increases your brand awareness, builds trust, enhances conversions, and increases your bottom line.