Ever been wandering around the Internet and had the feeling that certain ads have been following you everywhere? Well, they are. This is a strategy called “retargeting.” And it’s incredibly effective.
Retargeting is a relatively new and extremely useful tool for shops to bring back visitors who exited the site before completing a purchase. On average, an ecommerce site is lucky to see a conversion rate (the percentage of potential customers that make a purchase) of 1%. So what happens to the other 99% of potential customers who left the site before making a purchase? Before retargeting, there was no cost effective way to reach these people.
In a retargeting campaign, a cookie lets us know who exited the site without purchasing. We then contract a Retargeting Service Provider to place an ad that will be seen only by these people.
So, that ad for the thing you’ve been shopping for that seems to be following you from Facebook to YouTube to Mashable? That’s a retargeted ad. And you know you want to click it.
SHOW ME THE MONEY
Retargeting can dramatically reduce your cost to bring in new customers and/or exponentially increase these customers’ Return On Ad Spend (ROAS). Retargeting lowers your ROAS by only showing ads to previous visitors to your site. The results of the last three retargeting campaigns we’ve run are pretty telling.
Return on Ad Spend
Compare that against PPC campaigns. It’s hard. Retargeting upends the ROAS by selectively displaying your ads to prior visitors. In other words, you get to advertise to people who you know are interested in your products. It almost feels like we’re cheating, but nobody seems to complain about five digit revenue increases.
The reality is that, as obvious as this may seem, few online retailers are taking advantage of the strategy. Which is too bad because the years of ‘build it and they will come’ are gone. There are so many things we can do to build meaningful traffic and transactions, they just require a little effort on an ongoing basis. Trust us, it’s worth the effort.