Understanding How Retargeting Works

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Have you ever searched for a product online only to see ads for that product or company follow you around the internet? That’s retargeting! Retargeting is a digital marketing strategy that targets users who have already shown an interest in a brand or product. It’s a powerful tool that helps businesses increase their conversion rates by serving ads to users who are more likely to engage with their product or service.

The Basics of Retargeting

Retargeting, also known as remarketing, is a form of online advertising where ads are shown to users who have previously interacted with a brand or visited a certain website.

What is Retargeting?

Retargeting is a way to stay top of mind with users who have already interacted with your brand. It works by placing a pixel on your website, which tracks users’ behavior and actions. Once a user leaves your website, they’ll see targeted ads on other sites that encourage them to come back and convert.

For example, imagine you’re shopping for a new pair of shoes online. You visit Adidas, browse their selection, but ultimately decide not to make a purchase. Later that day, while scrolling through Facebook, you see an ad for the same shoes you were looking at earlier. This is retargeting in action.

The Importance of Retargeting

Retargeting is important in digital marketing because it allows businesses to reach users who have already shown an interest in their brand. These users are more likely to engage with your ads, leading to higher conversion rates and return on ad spend (ROAS).

Also, retargeting can help increase brand awareness and recall. By consistently showing up in front of users who have already interacted with your brand, you’re keeping your business top of mind and increasing the likelihood that they’ll remember you in the future.

Different Types of Retargeting Campaigns

There are several types of retargeting campaigns, each with their own unique benefits and use cases.

Site Retargeting

Site retargeting is the most common form of retargeting and targets users who have previously visited a website. This type of retargeting is effective because it allows you to show ads to users who have already expressed an interest in your brand or product.

For example, if someone visits your website and adds a product to their cart but doesn’t complete the purchase, you can retarget them with ads that remind them of the product they were interested in and encourage them to come back and complete the purchase.

Search Retargeting

Search retargeting targets users based on the keywords they’ve searched for on search engines like Google or Bing. This type of retargeting is effective because it allows you to target users who have expressed a specific interest or intent.

For example, if someone searches for “best running shoes,” you can retarget them with ads for running shoes or related products.

Email Retargeting

Email retargeting targets users who have interacted with your brand via email. This could include users who have subscribed to your newsletter, opened an email, or clicked a link in an email.

For example, if someone has subscribed to your newsletter but hasn’t made a purchase, you can retarget them with ads that encourage them to make a purchase.

And remember, Email Marketing is the HIGHEST ROI channel out there. So make sure it’s a part of your omni-channel marketing strategy.

Social Media Retargeting

Social media retargeting targets users who have interacted with your brand on social media platforms like Facebook, Instagram, or Twitter. This could include users who have liked a post, commented on a post, or followed your account.

For example, if someone has liked one of your posts but hasn’t visited your website, you can retarget them with ads that encourage them to visit your website and learn more about your brand.

How Retargeting Works

Retargeting works by tracking and collecting user data, creating lists, and then displaying ads to these users. Let’s take a closer look at this…

Tracking and Collecting User Data

Retargeting relies on cookies and pixels to track users’ behavior and actions on your website. A cookie is a small piece of data that’s saved on a user’s device when they visit your website. This data includes information about the user’s behavior on your website, such as pages visited, products viewed, and items added to cart.

Creating Retargeting Lists

Once you have the data, you can create retargeting lists based on the user’s behavior. For example, you can create a retargeting list for users who added items to their cart but didn’t complete the purchase. This allows you to display ads to these users that encourage them to complete their purchase.

Retargeting lists can be highly specific and targeted. Meaning, you can create a list of users who visited a particular product page or spent a certain amount of time on your website.

Setting Up Retargeting Ads

Once you’ve created your retargeting list, you can start displaying ads to these users. You can create ads that showcase the products they viewed or offer them a discount to encourage them to make a purchase. It’s important to create ads that are relevant and engaging to your audience.

Retargeting ads can be displayed on a variety of platforms, including social media, search engines, and other websites. By reaching out to users across multiple channels, you can increase the chances of converting them into customers.

Retargeting Platforms and Tools

There are several retargeting platforms and tools available, including Google Ads, Facebook, and other popular retargeting platforms. Let’s take a look at each of them in detail.

Google Ads Retargeting

Google Ads retargeting allows you to target users who have previously visited your website or interacted with your brand. You can create ads that appear on Google’s search results page, YouTube, and other websites that show ads through the Google Display Network.

Facebook Retargeting

Facebook retargeting allows you to target users who have previously interacted with your brand on Facebook or visited your website. You can create ads that appear in users’ Facebook feeds or on other websites that show ads through the Facebook Audience Network.

Other Popular Retargeting Platforms

Other popular retargeting platforms include AdRoll, Criteo, and Perfect Audience. These platforms allow you to reach users across multiple networks and websites, increasing your reach and conversion rates.

Best Practices for Retargeting Campaigns

Now that you understand how retargeting works and the different platforms available, let’s take a look at some best practices for creating retargeting campaigns.

Segmenting Your Audience

Segmenting your audience allows you to create more targeted and personalized ads. You can segment your audience based on their behavior on your website, such as pages visited, products viewed, and items added to cart.

Frequency Capping and Ad Fatigue

It’s important to set a frequency cap on your ads to avoid ad fatigue. Ad fatigue occurs when users see the same ad too many times, leading to a decrease in engagement and conversion rates.

A/B Testing and Optimization

A/B testing allows you to test different variations of your ads to see which performs best. It’s important to continually optimize your ads based on the data to increase your conversion rates and ROAS.

If you need help with setting up your own retargeting campaigns, contact us today and one of our dedicated Marketing Experts will set you up with a free strategy session.

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