What is Retargeting?
Retargeting has grown a lot in the last couple of years. Formerly regarded as a very difficult and costly tactic, only available to huge businesses, retargeting has lately shifted to a must-have promotion tactic for every business. Also importantly, now even the new entrepreneurs can use it, it is affordable and not that hard to learn.
So what exactly is retargeting? It is the realization of advertising to users based on their prior actions or activities. Did you ever visited a website to check out a particular brand or product, and quickly you see pictures of that brand or product chasing you all over the internet? Yes, that is retargeting and it is demonstrated to be very effective!
How Does it Work?
There are multiple models of retargeting, which we will review in detail following. The most common one is: “basic site visitor retargeting” which works like this:
You grab a retargeting “pixel”, this is a bit of code that you get from your retargeting provider, you simply paste this code on your site. Now, every visitor on your site becomes “cookied”, simply as a “website visitor”.
The retargeting provider makes sure your ad is shown to those “cookied” visitors around the internet, for this, they rely on big internet advertisement networks.
Basically, instead of concentrating on “cold traffic”, which does not convert very great, you are now concentrating on returning “warm traffic” or returning visitors that saw your brand and product already and these people are more expected to convert into customers.
It is a fact and proven that retargeting is a very effective form of paid advertising. Retargeted website visitors via display advertisements have a better chance to convert at your site, over 71 percent. Here are some more facts about display ads:
– With retargeting the CTR is approx 10X higher.
– The numbers regarding “remedying cart abandonment” are awesome.
A bulk of first-time visitors usually abandon chart and approx 7-10 percent will come back later. If you use retargeting, you can improve this percentage to 10-25 percent!
So obviously, all big brands are using retargeting (approx 55 percent) and they usually have huge budgets to do this. There are many variations with retargeting (like shapes and sizes) and you will read about this in the next article.
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