What Is Retargeting?
Retargeting is a powerful marketing strategy aimed at re-engaging customers who have previously interacted with your brand. It involves serving tailored ads to users who have visited your website, engaged with your content, or are part of your customer list. This method ensures that your brand stays top-of-mind for potential customers, guiding them down the sales funnel toward conversion.
Why are retargeting ads effective?
Retargeting ads are effective because they target individuals who have already shown an interest in your product or service, or are at least aware of your brand. By focusing your marketing efforts on these warmer audiences, you increase the likelihood of conversion, thereby maximising your advertising budget. Retargeting helps build brand trust and loyalty by consistently reminding potential customers of your brand’s value. Retargeting is a cost-effective strategy, particularly in industries with longer sales funnels.
Remember, you’re trying to convince someone, not just introduce them to your product. This opens new avenues for messaging, like emotional benefits or testimonials.
Is there a difference between retargeting and remarketing?
Yes, although the terms are often used interchangeably, retargeting and remarketing have distinct differences. Retargeting primarily uses digital ads to engage users who have interacted with your online content but have yet to convert. It moves them closer to completing a purchase. Remarketing, on the other hand, involves re-engaging past customers via email marketing or other direct channels to promote new offers or products. Both aim to re-engage audiences, but the strategies and tools used can differ.
How Retargeting Campaigns Work
Setting up a retargeting campaign involves several key steps. First, you need a source audience, which can be a customer list or individuals who have interacted with your digital assets. Tools like website pixels or engagement data on social media platforms help in building this audience e.g. on Meta you can retarget people who have visited your website for up to 180 days, or engaged with your brand on Facebook or Instagram in the last year. Once the audience is defined, create ads specifically designed to address this group. For example, if you are retargeting people who have visited your product page but not made a purchase, the ads could focus on the benefits of your product, testimonials, and emotional triggers. Finally, monitor the campaign performance to ensure it’s driving the desired results.
You also want to exclude users further down the funnel e.g- Targeting people who have engaged on FB/IG, but not been on your site
- Targeting people who have been on your site, but not made a purchase
What Goals Should be Considered for Retargeting?
Generate awareness
Retargeting can improve brand awareness by keeping your brand in front of potential customers. For example, if a user visits your site, browses a product, but leaves without purchasing, a targeted ad featuring that specific product can remind them to complete their purchase.
Drive conversions
Driving conversions is a primary objective of retargeting. By focusing on individuals who have already shown interest, you increase the likelihood of them completing a desired action, such as making a purchase or filling out a form.
Complete the buyer’s journey
Retargeting can effectively guide potential customers through the buyer’s journey. For example, if a user has visited a product page but didn’t buy, a well-timed retargeting ad can nudge them towards completing the purchase.
Introduce new products
Retargeting is an excellent way to inform your existing customers about new products or services. It leverages the trust and familiarity they already have with your brand, making them more likely to be receptive to new offerings.
The Benefits of Retargeting for Marketers
Retargeting offers several benefits for marketers, including:- It’s often cheaper to retarget existing prospects than to find new ones.
- Higher conversion rates lead to better return on investment.
- Keeps your brand in the forefront of consumers’ minds.
- Allows for more tailored and relevant advertising messages.
How to Create a Retargeting Strategy
To create a successful retargeting strategy, begin by segmenting your target audience based on their interactions with your brand. Develop tailored ads for each segment and closely monitor the campaign to optimise performance.
Best Practices for Retargeting
- Segment Your Audience: Tailor your ads to different segments & exclude users who have already taken the action you want them to take.
- Use Dynamic Ads: Utilise product feeds to retarget users based on the products they have viewed or added to cart.
- Test and Optimise: Continuously monitor and adjust your ads for better performance.
- Monitor Frequency: Avoid ad fatigue by capping the number of times an ad is shown.
Challenges and Limitations of Retargeting
Privacy concerns and regulations
With increasing privacy regulations, such as GDPR and CCPA, it’s critical to ensure your retargeting campaigns comply with legal standards. Be transparent about data collection and offer opt-out options to users.
Ad fatigue
Frequent exposure to the same ads can lead to ad fatigue, causing users to become desensitised to your messages. Rotate your ads and refresh creative content every 2-3 weeks to maintain viewer interest and engagement.
Over-targeting
Over-targeting occurs when the same individuals are bombarded with your ads across multiple platforms. This can lead to annoyance and even damage your brand’s reputation. To avoid this, carefully manage your ad frequencies and use platform-specific strategies.
By understanding and implementing these retargeting strategies, your agency can efficiently convert interested leads into loyal customers, ultimately achieving your business goals with higher efficiency and precision.
Pixel-based audiences not performing/populating
Pixel-based audiences do not perform as well as they did in previous years. You may find that only a small percentage of users actually end up in these retargeting audiences due to people opting out of cookie tracking.
