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The Benefits of Retargeting

10 Benefits Of Retargeting Over Normal Display Ads

July 19, 2021
Posted In: Advertising, Digital Marketing

Did you know that the average person can be exposed to around 5000 ads per day? This makes getting people to remember your brand an extremely difficult task. But do you know the secret all marketing companies are using to get around this?

The secret is a method in which people who visit your site get personalized ads to lure them back, known as retargeting. Read on as we discuss the benefits of retargeting ads.

The Benefits of Retargeting1. It Builds Brand Recognition

There are a lot of brands in the world, each with its own logo, designs, colors, and mission statements. Online, these are placed in front of internet users thick and fast. This makes the task of getting someone to remember you all that bit harder.

With retargeting ads, your brand is shown repeatedly to a potential customer. By targeting people who have left your website, you are imprinting your brand on their memory. It is a friendly reminder about what you can offer and why they should come back.

Before long, you will find that when they think of your service or industry, your company will be one of the names that pop into their mind. This is the outcome of a brand awareness campaign. With retargeting you can set your parameters and the work is done for you.

2. You Control Who Sees Them

Think about a traditional, print marketing campaign. You place a billboard with your advertisement up in the city. Most people will have no interest in your product, and your aim is to catch the eye of a few that do.

That is not a great return on investment. With display ads, this is essentially what you are doing online. You are placing your ad in front of people, hoping it will catch the right person’s eye.

In print media, you could narrow down the search by advertising in a magazine or newspaper. Here, you have a more defined demographic, though the tactic is still not perfect. In digital advertising, this is essentially targeted ads, though digitally the audience is much more defined.

However, retargeting has no traditional media comparison. This is especially true when you compare its return on investment. It is the equivalent of being in the person’s house every day, giving them a friendly reminder about the product they were considering buying.

3. It Is a Great CRO Tool

Conversion rate optimization (CRO) has changed a lot in the last few years. Previously, conversion rates were mainly concerned with a sales funnel method, that followed a quite strict pattern. Visitors came to your website, you optimized a landing page and this funneled into leads and conversions.

At various stages, you would lose people in the funnel. People might leave when they saw the landing page or back out when it came to converting. However, remarketing has turned all of this on its head.

It allows you to pull potential leads back into the funnel after they have left. They may even enter higher up than when they started.

For example, let’s say someone visits your website and leaves when they hit the landing page. Perhaps it was for no reason other than they got called to another task or went to make a coffee. Your website then gets forgotten about, and no conversion is made.

Retargeting will prompt them to return later down the line. They may suddenly remember why they were checking the service, click on your ad and return at the point of sale. Thus, they have returned higher up the sales funnel.

4. The Biggest Providers Have Remarketing Tools

Remarketing tools are so successful that the biggest search engine and social media site both have them. They also offer the greatest reach, meaning if you are wondering how to retarget ads, these are your best place to start.

Facebook requires the use of the Facebook Pixel to begin your ad campaign. This is a communication gateway between Facebook and your website. It tells the platform who used your site and what they were looking at, so they can retarget the right people with the right content.

In Google, if you already have a Google Ads account set up, retargeting is surprisingly simple. You start a campaign as normal, but change the setting under the targeting section. If you set targeting to automated, most of Google’s complex algorithms will do the work for you.

5. Retargeted Ads Are More Likely to Get Noticed

If we are honest, online ads can be annoying. We have all been on websites that are more ad than content. Everyone has faced the slow mobile site, that loads an ad as you scroll and spoils your enjoyment.

All of this can tarnish your brand. Would you buy something from a last-minute website pop-up you clicked on accidentally? The chances are you wouldn’t, and neither would most people.

That means that most people block out online advertisements. If they don’t have software to do it for them, then they do this mentally. However, retargeting statistics show a different story.

Three out of five people who see a retargeted ad actually notice it and consider it. This is for a number of reasons, that you do not have with other ads.

The first is that they have already shown an interest in the product or service. Secondly, they have already started building a rapport with your brand by visiting the website. Combined, these factors create the perfect recipe for converting people who left the website.

6. It Gives You a Second Chance

When it comes to digital marketing, second chances are extremely rare. Once someone has left your website, unless they gave their email address or signed up for notifications, then they are gone. That is not the case with retargeting ads.

A good retargeting ad campaign will try a different approach to the one on your landing page. It might have a different hook or tag. You can even offer incentives such as discount codes to lure people back into the sales area.

7. They Have Better Conversion Rates

If you need more proof, then it is statistically proven that retargeting ads have better conversion rates. In one study, 1000 marketers were surveyed and asked about their campaigns. In various categories, at least 90% of marketers said it outperformed other channels.

For example, they found it 92% better than search ads and other display advertising. For email, it came in at 91%. This shows it has a much higher return on investment and the fact that it was marketers who have surveyed, shows they were asking people who knew what they were doing.

8. It Works Across Different Sectors and Industries

A large study by one marketing agency, done across 39 advertisers in 103 campaigns, also had outstanding results. In fact, it beat their methods by a long way. However, the most interesting fact was that it was done across seven varied sectors and industries.

In this study, it beat audience targeting by a huge 514%. This was followed by premium pricing ads at 300%. Contextual advertising, run of network, and efficiency pricing ads were all at 100% or over.

However, the most outstanding result was how it generated a high lift in business name searches. This was raised by around 1046%. This shows that as a brand awareness-building tactic, it is supremely effective.

9. You Can Use It for Cross-Selling

One of the many retargeting benefits is that it is not just for bringing back people who did not convert. You can also use it to lure in previous customers. This increases your customer retention rate, which is just as important as bringing in new leads.

Most companies sell more than one product on their website. By cross-selling and offering other similar products, you can bring back people who have already converted. The added benefit is that you know they are an engaged buyer that is willing to spend, making this a highly prized source of website traffic.

10. They Are Cost-Effective

To know the exact cost of retargeting ads would require knowing your individual industry. Comparing their effectiveness would also require knowing how much you have spent on other advertising methods. However, all the evidence points to it being the best return on investment you are likely to make.

Your audience has been narrowed down to people who already have an interest. Any money you spend advertising to them is much more likely to convert. This makes the overall ROI much higher and increases cost efficiency.

Benefits of Retargeting

Now you know the benefits of retargeting, you need to find a company to assist. While you can do retargeting yourself, the expertise of a marketing company will help you bypass a lot of the A/B testing you will need to do. Their experience can place you right into a position where your investment will convert immediately.

Your first stop should be David Taylor Digital. From website design to marketing, we can help you thrive in the digital economy. Contact us here to discuss your needs and see how we can help your business boom!

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