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Why Retargeting Works

Why Retargeting Works

Written by enCOMPASS Agency

Whether you realize it or not, you’ve probably found yourself on the receiving end of a retargeting campaign. Consider this example: You do some research before purchasing a new mountain bike by browsing the website of one of your favorite bicycle manufacturers. You make note of a few promising models, but don’t commit to making a purchase just yet.

An hour later, you’re sitting on your couch, scrolling through Instagram on your smartphone. You’re only mildly surprised when you notice that your feed includes an ad from the very bike manufacturer you were thinking about earlier, perhaps even highlighting the very same models you had your eye on.

This is a simple example of what retargeting looks like from the consumer’s perspective. As you might imagine, considering it from the advertiser’s perspective brings a few additional layers of complexity. Regardless, retargeting is a crucial addition to any marketing toolbox, allowing you to nurture leads and cultivate your sales funnel based on actual user behavior, intention, and Internet search history.

What is Retargeting?

Let’s back up and offer a quick definition: When we refer to retargeting, what exactly are we talking about?

Retargeting, also known as remarketing, generally uses cookies, which are small pieces of data that are stored by a Web browser, to remember who visits a particular webpage or advertisement. Marketers can use this information to serve ads to customers based on their previous online activity. The benefit should be clear: Through retargeting, you can target your ads to users who have already visited your website, developed some familiarity with your products or services, and shown that they have at least some level of interest in making a purchase.

In other words, retargeting is a way for advertisers to serve highly relevant ad content, increasing brand awareness as well as total conversions.

Different Types of Retargeting

Advertisers should be aware of a couple of types of retargeting, which include search retargeting and site retargeting.

What is Search Retargeting?

Search retargeting means serving ads to a user as they browse the Internet, based on their keyword search history. Advertisers can establish campaigns centered on certain keywords that are relevant to their products or service offerings, then target users who are searching for these terms. So, our hypothetical bike store may target users searching for “mountain bikes” or “bike shop near me.”

What is Site Retargeting?

Site retargeting, on the other hand, essentially means serving ads to clients who have already visited your website. Our original bike store example fits into this category. Site retargeting is different from search retargeting in a couple of important ways. One, it’s not based on keywords. And two, it targets users who have already developed familiarity with your brand.

Does Retargeting Work?

At enCOMPASS Agency, we consider retargeting to be an incredibly effective strategy, assuming it’s done correctly. And we have plenty of data to back us up. For example, consider some Facebook retargeting stats, shared by Connectio.

  • About 75% of customers are aware of retargeting ads.
  • On Facebook alone, retargeted ads are more than 75% more likely to get clicked than non-retargeted ads.
  • When combined with other marketing channels, retargeting can potentially increase your conversions by more than 50%.

We’ll also note, based on internal data, that customers are more than 70% more likely to use your brand when exposed to your message after initial exposure; in other words, creating multiple touchpoints with your customer is a very effective way to win their trust and gain their business.

Taking a Strategic Approach to Retargeting

While retargeting is undoubtedly full of potential, we want to return to something we mentioned earlier: Retargeting is effective only when wielded strategically.

If someone visits your website but doesn’t make a purchase, you can use retargeting to follow them around the Internet with banner ads, and in some cases that may prove fruitful. But in other instances, it may actually be a turn-off, especially if they feel they are being served your ads too much.

Another case use of ineffective retargeting ads is when advertisers do not have exclusions built into their campaigns. Let’s go back to our bike shopping example. Having ads served to you, as the shopper, while you are still considering your purchase is helpful. However, continuing to see those ads long after you have made the purchase can be an annoyance. It’s also a huge waste of the advertiser’s money. A better way to approach this scenario as the advertiser is that once the bike has been purchased either remove the customer from the retargeting campaign or show them more relevant ads like bike accessories and special offers towards an accessory purchase.

Let’s shift to a more positive and strategic example. Say a customer is researching for the right online advertising agency. Later, they see a retargeting ad offering them access to a free e-book, chock full of digital advertising stats, tips, or guidelines. By combining a targeted approach with a valuable offer, this ad agency might earn the customer’s trust and ultimately win their business.

Retargeting the enCOMPASS Way

At enCOMPASS Agency, we provide our clients with the insights needed to develop finely-honed, well-thought-out retargeting strategies, designed not just to hit people over the head with brand mentions, but to actually guide people through the sales funnel as quickly as possible.

We believe that retargeting belongs in almost any marketing portfolio, and we’d love to tell you more about our unique approach. To chat with us about retargeting, reach out to the team at enCOMPASS Agency whenever you’re ready.