What is Retargeting?
Retargeting is a form of digital marketing in which you target users who have previously visited your website with banner ads on display networks across the web. In this process, you target users who have visited your site, had an experience with your brand but left without placing an order.
It allows you to convert window shoppers into buyers. Only 2% of users convert on their first visit to an ecommerce store. Retargeting helps you to bring back the rest 98%. It works by keeping track of users who visit your website and displaying customized banner/retargeting ads as they visit other websites.
Let’s assume, Sophie checks out a smartphone on an ecommerce site and leaves without placing the order because her newly adopted puppy was found chewing shoes again. The sale remains shelved off for the meantime and the effort and cost attached with the entire marketing campaign behind the product goes down the drain.
Retargeting is what saves the sale here. So, when Sophie gets back, logs into her system and opens a different website, she is shown banner ads of that smartphone on it. If there’s a timely offer present at the time, then it might act as an icing on the cake and in all probability, Sophie will be inspired to complete the purchase immediately.
How does Retargeting work?
Here’s how it works: you place a small, unobtrusive piece of code, sometimes referred to as a ‘pixel’ on your website. The code, or pixel, is unnoticeable to your site visitors and won’t affect your site’s performance. Every time a new visitor comes to your site, the code drops an anonymous browser cookie. Later, when your cookied visitors browse the Web, the cookie will let your retargeting provider know when to serve ads, ensuring that your ads are served only to people who have previously visited your site.
Retargeting is so effective because it focuses your ad spend on people who are already familiar with your brand and have recently demonstrated interest. It generates greater online sales by keeping your brand front and center and bringing ‘window shoppers’ back when they’re ready to buy. When a potential customer for your site sees the retargeted ad, or retargeted email, it reminds him of his former desire to purchase and possibly steers him back.
Every time your customer sees your retargeting ad, your brand gains traction and more recognition. The high click-through rates and increased conversions that are typical with retargeting campaigns underscore the value of good branding and repeated exposure.
How many types of Retargeting are there?
In general, there are three types of retargeting although site retargeting is the most widely known among marketers. Here’s a brief overview.
- Search Retargeting: This is a form of ‘behavioural retargeting’ where a user of a search engine will be targeted with display ads based on their search queries. The searcher didn’t necessarily visit the advertiser’s site previously.
- Email Retargeting: This should be pretty obvious from the name. Perhaps if a basket has been abandoned by a registered user of a site, an email can be sent to the user to say: “Hey, why don’t you come back and buy that stuff you wanted?” David Moth includes some slightly more professionally written examples in his nine case studies on cart abandonment and email retargeting.
- Contextual Retargeting: Slightly more complicated than site retargeting, but all it really means is that when websites share similar customers, they can partner up to share their cookies. So if a visitor leaves one site and later visits a partnered site, adverts for the previous site will be displayed on the current one. Brands don’t have to pay for highly targeted ads, as chances are the people visiting these similar sites generally have the same interests.
What are the best practices in Retargeting?
Through years of research, Vizury has put together some of the best practices in Retargeting. This is what we found and using this we helped our ecommerce marketer grow conversions:
- Provide a clear call-to-action button in the ad that upon clicking takes the user to a relevant landing page or product page, not just the homepage.
- Combine offers, promotions like free trials and targeted entice the site visitor into a successful conversion.
- Always keep your audience size in mind and adjust your retargeting strategy accordingly.
- To minimize spam and wasting budget, constantly reorganize and update your lists- constantly supplemented with fresh data. Combining the process of lead generation with retargeting is especially effective.
- Tracking the performance of retargeting campaigns is essential. Make sure to place the relevant pixels in all manner of event/cases you may desire to pursue.
- Automate your remarketing campaign to effectively organize and precisely target the audience in the most relevant manner. By linking your CRM and user lists from multiple sources, you can deploy advanced segmentation to maximize the value per spend in an instant of the time it takes by regular methods.
- All of your ads should be well-branded and recognizable. Optimize the display aspects but keep the design elements simple but effective. Use bold colors, concise content and clear call-to-actions’ with big, clickable buttons.
Here are some tips that we constantly provide our marketers with and have found very fruitful:
1. Use of historical data to show relevant products and create segments based on user-behaviour
Any user who has seen products on the website and spent time on researching about the products is more likely to buy during the sale period. Retargeting acts as a trigger to this action and gives the final push to the decision making process by showcasing customized banners(based on past browsing history)
Vizury creates customer segments based on multiple user-behaviour attributes and focuses on users with the highest probability to buy, thus maximizing the ROI for the client. For instance: One of the important attributes could be the Average order value (AOV).It can be clearly seen from the below graph that AOV increases during the sale period. Vizury prioritizes users who have abandoned the cart and have a high basket value.
2. Push Products
By definition, these are the list of products which clients want to promote aggressively (usually products with high discounts and products which are introduced during the event).
Performance of push products during sale period:
Around 200 client-recommended products contributed to more than 45% of the website sales during the holiday season for a major e-commerce website. Any marketer would want to spend the maximum ad spends on the marketing activities of these products.
Vizury’s push product algorithm ensures that such products (based on their category) are prioritized over other products and are shown more often on banners. We also chase users visiting these products aggressively.
3. Category Analysis
Distribution of sales by category:
Customers associate a certain website to products of a particular category. For e.g. Website A has the highest discount on products of category B. The top selling categories on the website generally has the highest sale during any event. Vizury prioritises high selling products over others in combination with focusing on categories.
4. Target wider population
The intent to purchase on the website varies inversely with the time since the user drops off. However, during sale period it makes sense to target and bring back the customers who have not visited the website recently. The effectiveness of targeting these customers increases by showing the push products in our banners.
5. Use of Social Channel
Social media has been the new nitro-boost that re-targeters were waiting for.
– Social media channels like Facebook helps in engaging customers for a longer period than other marketing channels.
– Social media has a great influence on buying behaviour of potential customers. The CVR on social media is significantly higher than many of our conventional marketing channels.
– Social media has shot up the overall unique reach by 20-30% in most campaigns.
6. Communication about the website offers through customized banners
– Vizury helps in showing customized offer messages in banners which in turn increases the CTR.
– Banner theme matches the overall website theme during the sale period; to ensure higher brand recall.