If you’ve heard of retargeting and think it’s a strategy you want to invest more in, you’re in good company. In the old days of marketing, only the biggest brands could afford to get their messages out to big audiences via mass media vehicles like TV and radio. These days, increased media fragmentation and new tools like retargeting have evened the playing field, allowing mom-and-pop-shops to drive awareness among their target audience even faster than many large brands.
Retargeting provides a huge opportunity to small- and medium-sized businesses, but many marketers aren’t aware of how it works. How do you get started? How do you ensure you’re getting the biggest possible return on your investment? Outdated information about retargeting online can confuse good marketers and keep them unnecessarily sidelined.
What Is Retargeting & Why Is It Beneficial?
If you were to look at your conversion funnel, how often would you find that a first-time visitor visited your website, viewed a product, and then made a purchase all on that first visit? Chances are you’d be lucky if you saw that behavior once.
Making a sale is a process. Studies have shown that up to 98% of your visitors leave your website without converting. Another study on the conversion funnel by Google found that most of the times, it takes several steps for a user to go from visit to conversion, and it’s actually not uncommon for a visitor to take more than 30 steps before making a purchase!
Retargeting helps you tackle this problem head on. It allows you to target and serve ads only to people who’ve previously visited your website, used your mobile app, or in some cases, visited and bought something from a physical retail location. This means you can be very strategic and efficient about who you’re reaching and where you’re spending your marketing budget. Retargeting provides two primary benefits: It maximizes ROI and keeps you in front of prospects.
Marketers don’t often think of retargeting as a brand-building tool, but this represents a huge missed opportunity. One of the greatest benefits retargeting offers is that it keeps your brand front and center with a targeted audience.
Sometimes you might do this to try to drive a direct response, as we outlined in the section above. Other times, though, it also gives you an opportunity to build up your brand’s familiarity with your target audience and increase the likelihood of a future indirect action like a Google search or an organic site visit.
These indirect effects can be significant. In fact, comScore found that retargeting campaigns led to a 1046% increase in branded search and a 726% lift in site visitation after four weeks of retargeted ad exposure.
It’s a powerful direct response tactic that maximizes ROI. In the environment of conversion funnel chaos mentioned above, no other advertising tactic offers the return that retargeting does. Retargeting offers the most direct and effective means to:
– Reconnect with your highest value targets — people who’ve previously expressed interest in your offerings
– Recapture their attention with an effective, compelling message
– Move them further down the sales funnel