Maximizing Your ROI with Retargeting

When going to a website to learn more about a product or service, do you buy on the spot or do you need more time before purchasing?  If you need more time, you are among the estimated 98% of Internet users who “bounce” or leave a website after the first visit. Making a sale is a process! Which is why retargeting works so well.

Retargeting is a tool designed to help companies reach that 98% of users. By following them around the web, delivering ads as they visit other websites, retargeting is extremely effective in converting visitors who otherwise may not have come back to your website.

Think Amazon. If you’ve ever shopped online and later saw ads for products like the ones you viewed, you’ve experienced retargeting firsthand. (Who knows you might even be one of the many who converted too!)

Despite the effectiveness of retargeting, many marketers are hesitant to use this tactic because it seems complicated. So, what is retargeting and how does it work? Questions we often hear include:

  • How is retargeting used as a branding tool?
  • How does retargeting maximize ROI?
  • How does retargeting really work?
  • Why is it so effective?
  • Can I only do retargeting and nothing else digitally?
  • How do I start?

Retargeting as a Brand Building Tool

People don’t always think of retargeting as a brand-building tool, but they couldn’t be further from the truth. One of the biggest benefits is that it keeps companies and their products/services top-of-mind to a very targeted audience. By delivering an ad several times over the course of a chosen time-frame, it builds brand awareness and increases the likelihood of a future indirect action like a Google search or an organic site visit. These “indirect” actions are significant. Media research company comScore found retargeting campaigns led to a 1,046% increase in branded search and 726% lift in site visitation after just four weeks of retargeted ad exposure.

Retargeting to Maximize ROI

Retargeting offers the most direct and effective means to reconnect with an audience that already showed interest in a product or service (and who is likely to make a purchase). These strategically designed ads recapture the visitor’s attention with effective, compelling messages that moves them further down the sales funnel.

How Retargeting Works

Retargeting is a cookie-based technology that uses Javascript code to “follow” your first-time visitors around the web. Cookies are files that are stored in a visitor’s browser and helps the site to “remember” the details of their visitors. Think of it this way. If you go to a site and must log in on the first visit and you’re automatically logged in the next time, the site “remembered” your information using cookies. To use retargeting,  programmers include code in the site that allows the site to drop cookies into a visitors’ browsers. Those cookies then signal when someone who visited the site lands on another site with available advertising space. The ad displays and serves as a great reminder for customers to circle back to where they originally saw the product.

How Retargeting is So Effective

This marketing tool works well because it targets advertising dollars on people who are already familiar with a brand and have an immediate need or interest in a product or service. Companies are beginning to understand the power of this marketing tool as almost 90% of marketers plan to increase or maintain their retargeting spend in the next year.

Retargeting Works Best When Part of a Larger Digital Strategy

Retargeting is no doubt a powerful branding and conversion optimization tool, but it works best when it’s part of a larger digital strategy. Content marketing, AdWords, and paid social media ads are great tactics for driving traffic to a site, while retargeting increases conversions of those who initially came to the site. The two tactics work hand-in-hand with each other.

Things to Avoid with Retargeting

Many marketers are afraid this approach will be too intrusive or aggressive. By keeping in mind the following information, retargeting can be used to build a company or brand’s bottom line.

  • Don’t use too many ads. (15-20 ads per month is recommended.)
  • Don’t show ads after a customer makes a purchase. (Just as a line of code is added to a product page to show ads, a line of code can be added to a post-conversion page that will stop the ads from displaying.)

Ready to Start Retargeting?

Ready to start retargeting? There are many platforms that walk you through the process. Just remember, it’s important to research which platform is best for your business and to remember to segment your audience based on where they are in the sales funnel. Visitors who landed on your homepage may respond well to a general ad that promotes your brand, while visitors to a specific product page will most likely come back if you show similar items or those products with deals attached.

If you like the idea of retargeting but just don’t have the time or desire to do it yourself or if you have a lot of products and the thought of creating unique ads for each sound impossible, GRIT Marketing Group can help!  Give us a shout and we’ll get you all set up!