Retargeting (also called Remarketing and Audience Targeting) is a form of online marketing/advertising. It allows the advertiser to track all users that visit his webpage (or any online destination), and find those users across almost any site on the web. These users will see your ads as they navigate to their favorite blog, news site, or sports page. By building a retargeting list or “audience” of users who have visited a certain website, the advertiser can create powerful customized campaigns, tailored to those specific users, and which will only be seen by those users.
Here are three benefits to remarketing:
- Brand Recognition — Users who recognize the advertiser’s brand will now see his advertisements displayed across thousands of websites, creating the impression of a large-scale advertising campaign, but for a fraction of the budget.
- Cost Effectiveness — The highly targeted nature of retargeting requires the advertiser to pay higher-than-normal CPM prices compared to broadly targeted campaigns. However, due to the relatively limited size of audiences, overall costs are generally lower, while campaign performance is typically higher.
- Behavioral Targeting — Depending on the remarketing ad network, it is possible to create campaigns that only target users who fall into certain behavioral groups (e.g. known to make online purchases with a credit card).
Remarketing shows tremendous promise in helping advertisers increase sales and conversion rates. Studies have shown that 96% of people, on average, do not turn into a sale; and 70% of people on average abandon their shopping cart. Remarketing has reported to recapture 80% of these people.
How Retargeting Works
The key behind retargeting tracking and reaching a visitor even after he leaves the advertiser’s website. Technically speaking, an advertiser places a pixel, or small snippet of code, on their website to begin. This pixel identifies how potential customers interact with their website and allows for segmentation of those customers for later advertising targeting. When the visitor goes to another site that also belongs the advertiser’s ad network (e.g. Google Adwords), the ad network will detect the cookie and deliver the advertiser’s ad.Business frameworks like Retargeting (Remarketing) are invaluable to evaluating and analyzing various business problems. You can download business frameworks developed by management consultants and other business professionals at Flevy here.