How exactly does "retargeting" work?
Have you ever browsed a product online, only to see ads for that exact item following you around the internet?
That’s ad retargeting in action.
It’s a powerful digital marketing strategy that helps brands reconnect with potential customers who have shown interest but have yet to convert. But how does retargeting work, and how can you leverage it effectively?
Let’s dive in.
What is retargeting in digital marketing?
Retargeting is a technique for displaying ads to users who have previously interacted with your brand but left your site before making a purchase.
Two main types of retargeting ads exist:
- Pixel-based: Uses JavaScript (tracking pixel) to follow and target users on other websites anonymously.
- List-based: Uses contact information to create custom audiences for targeting on Google and social media platforms.
How does a retargeting campaign work?
Retargeting works by placing tracking pixels in a user’s browser when they visit your site. These pixels allow your ads to be shown to users as they browse other websites, reminding them of your brand or product.
Here’s a step-by-step process:
- A user visits your website and browses products
- They leave without making a purchase
- As they visit other sites, they see an ad promoting your product
- This retargeting ad encourages the user to return to your site and complete their purchase
This process effectively increases brand awareness, boosts conversion rates, and improves overall marketing ROI. It’s like a friendly reminder saying, “Hey, remember us? That product you liked is still waiting for you!”
Which platforms can you use for retargeting?
Several powerful platforms can help you run retargeting ads:
- Google Ads (formerly Google AdWords): Reach potential customers across the Google Display Network and Google Search. Google retargeting works using the remarketing tag to identify past site visitors and display targeted ads as they browse websites within Google’s network.
- Facebook Ads: Offers precise targeting based on user demographics and interests. You can retarget users on Facebook, Instagram, and the Facebook Audience Network. Facebook’s retargeting pixel tracks website visitors and serves relevant ads within the Facebook ecosystem.
- LinkedIn Ads: Ideal for B2B companies, target existing customers based on their professional profile and interactions with your content.
- Twitter Ads: Allows you to reconnect with users who have interacted with your tweets or visited your site.
Each platform offers unique retargeting strategies to help you connect with your target audience based on where they spend most of their time online.
What are the pros and cons of retargeting ads?
Retargeting campaigns have their benefits and drawbacks:
Pros:
- Higher click-through rates
- Increased brand visibility
- More relevant ads
Cons:
- Privacy Concerns
- Potential for ad fatigue
Retargeting is particularly effective for targeting “warm” leads – people who’ve already shown interest. It’s like picking up a conversation where you left off, rather than starting from scratch.
However, serious marketers must be careful to avoid overwhelming viewers with irrelevant ads, which can harm their perception of your brand.
How much does retargeting cost?
Retargeting costs vary based on two main pricing models:
- Cost per click (CPC): You pay when a user clicks on your ad.
- Cost per mille (CPM): You pay for every thousand impressions.
Retargeting offers a lower cost per acquisition than other forms of digital advertising.
To maximise your advertising budget, set clear advertising campaign goals, use frequency capping to avoid overexposure, and regularly test and refine your ad creative.
Who should use retargeting?
A wide range of businesses can use retargeting to stand out from competitors, increase engagement and boost conversion rates, including:
- eCommerce stores: Reduce cart abandonment and remind shoppers of viewed items.
- B2B companies: Stay top-of-mind with potential clients throughout their decision-making process.
- Service-based businesses: Increase brand awareness and stay connected with potential customers.
Retargeting is also helpful in engaging existing users, promoting new products, and increasing brand loyalty.
Are there legal limitations on retargeting?
Yes, there are legal limitations. You must be transparent about your data collection practices and comply with data privacy laws like GDPR and CCPA. Obtain explicit consent for retargeting when required.
The goal is to be helpful and relevant, not intrusive.
As privacy concerns grow, brands are exploring contextual targeting as an alternative to behaviour-based retargeting to maintain compliance while reaching their audience effectively.
Good metrics to keep in mind
A successful retargeting campaign will deliver your message to the right audience at the right time.
Remarketing is a powerful tool that, when used correctly, can significantly boost your marketing efforts. When reporting on results, consider these key metrics:
- Click-through rate (CTR)
- Conversion rate
- Return on ad spend (ROAS)
- Cost per acquisition (CPA)
These metrics will help you gauge the success of your campaigns and optimise your efforts over time. Integrate each campaign with another marketing channel like email or social media to create a cohesive brand experience across all touchpoints for best results.
How does frequency capping improve retargeting?
Effective retargeting is about reaching your audience both thoughtfully and strategically.
You want to stay on your audience’s radar without overwhelming them. This is where frequency capping comes into play. Limiting how often a user sees your ads allows you to maintain effectiveness without risking ad fatigue.
Additionally, regularly rotating your ad creatives ensures your content stays fresh and engaging. Don’t forget to use burn pixels to stop showing ads to users who have already converted; there’s no need to target customers who’ve already made a purchase!
Ready to supercharge your retargeting efforts?
Need help setting up your advertising campaign? Check out our other articles for more paid search marketing tips.
Reach out to us at Search Republic, your trusted Google Premier Partner. We’re here to help you leverage retargeting to reach your target audience and drive real, effective results for your business.
We look forward to hearing from you!
