What is Ad Retargeting?

Big Brother is watching you. At least that is what you might be thinking when you're suddenly presented with online popup ads related to a recent web search. Is it safe to say that you were being tracked from one website to another?

Actually yes, but there is nothing sinister about this.

It is a very common practice known as ad retargeting and it's helping many online businesses pull in new customers. Are you currently running an ad retargeting campaign? If not, you should be, because the conversion rates on retargeted banner ads are much higher, in many cases up to 20%. Retargeted ad campaigns target the 98% of the audience that don’t buy after leaving a website.

Regaining the lost lead.

Traditional display advertising has mostly been used as an awareness and branding tool. Whereas, retargeted ad campaigns have been great for driving conversions on your site, be they sales, sign ups, leads or subscribers.

If the goal of your advertising campaign is direct sales or signups and you have a decent amount of traffic then retargeting is ‘right’ for you.

It’s all in the cookie.

Every time you log onto the Internet and start surfing you leave a trail of breadcrumbs wherever you go. Those "breadcrumbs" grow into cookies. This is the tracking technology that allows visitors to any e-commerce site to pick up a cookie with every visit. Now they are tagged for potential retargeting.

You'll be paying a company to set up a retargeting platform that will collate all those cookies and present a bid to run your ads across many other web portals. These ads are banner ads which can bring that customer right back to your website – especially if they are dynamic.

Understand the threshold.

There is a minimum recommended traffic size that you should have coming to your website before starting a retargeting campaign. You should be aware that retargeting only targets your site visitors.

If your site only receives a small amount of traffic per month, then you will only have a small pool of users to target resulting a low sales volume

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It has been found that if your site must receive at least 5,000 unique visitors per month. Even if you have less than 5,000 uniques, you can still add a retargeting tracking pixel to your site but your goals should be towards branding instead of sales.  Run a contest, or a lead generation campaign. 

Does ad retargeting work?

According to a comScore study, companies who use ad retargeting can see a 726% increase in return visits to their websites within four-week period. As for online shoppers, 72% don't finish shopping when they put items in their cart. Of that group, 8% return to make the purchase. Factor in ad retargeting and those returns bounce up to 26%.

These numbers definitely provide a convincing argument that ad retargeting should be a strong force for the smart marketer.  

Lessons Learned From Retargeting Customers

Just because a customer goes searching on a specific website doesn't mean they can't be "approached" again at a later date with the same product. This concept of online marketing is referred to as retargeting or remarketing.

You've probably experienced this as a casual internet surfer without even realizing that you've been retargeted. If you go to a site like Amazon and search for T-shirts a banner ad from Amazon for that product could pop up on another website you visit later in the day.

With the use of tracking cookies, advertisers can follow you around multiple websites and target specific advertisements.

And guess what? It works.

Retargeting customers has been known to drive conversion rates up by 70%. Here are the best ways to create a retargeting campaign.

Pick the right platform.

As you approach retargeting, you'll have two options with regard to the type of programming platform you can utilize. A managed platform will have you partnering up with a retargeting provider that will help you set up your campaign using specific metrics. The self-service platform gives you more control over the targeting of audience segmentation and customer tracking.  The provider can walk you through the process. A few examples of the kinds of online retargeting providers to look at are Google Adwords, ReTargeter, AdRoll and FetchBack.

Pick the right campaign settings.

Once you settled on which provider will be helping you launch your retargeting effort, you'll need to determine your targeting parameters. In other words, how will you find the customers you're looking for?
For instance, will you be selling your product overseas? Many retargeting vendors offer default settings to advertise to international consumers. If that's not a market you're ready for, make sure they "click off" that option. The same goes for setting up the specific time and day when you run your retargeting ads. If you're a site like Amazon then you're a 24/7 business.

However, if you have a sales forces that needs to deal with customers during specific hours than those are the hours when your retargeting should be running. There are other factors like cookie duration and offer rotation which need to be taken into account. Once again, your provider should be able to walk you through these factors.

Pick the right segmented audience profile.

Retargeting lets you get specific with your customer base. For instance, you might sell products to men and women but they aren't necessarily the same products. You want to be able to segment your audience profile so the right ads reach the right customer. It might help you divide your website into those specific areas of interest that will appeal to various demographics.

Pick the right tests.

The strength of a successful retargeting campaign will be based on which ads work. You need to test your campaigns for optimal results. You should test variables such as ad headline, ad copy, background colors, images and calls to action. Using analytic testing will help you find out which is the most effective approach to your retargeting.