What is retargeting?
I came across an article talking about statistics of
retargeting. I believe I am not the only person ignoring what this marketing
strategy is so I decided to share my findings.
Although Professor Kagan has already spoke a little bit about it in
class I wanted to dig further.
Have you ever noticed that after looking for certain product in
the Internet, multiple banners advertising this same product/service appear all
over the websites you visit? This is basically the result of a retargeting
campaign.
It is an effective form of advertising, considering that 95%
of users leave an online store without buying anything and that users visit at
least 5 times an online store before buying something.
Here is how it works:
- When users enter a virtual store they are identified and tracked through an anonymous unique cookie. A cookie is an unnoticeable piece of code also called pixel.
- The cookied visitor leaves the store and navigates through other sites.
- When navigating websites affiliated to the retargeting provider, users are recognized. The cookie will let the system know when to serve ads, ensuring that the ads are served to only to people who have previously visited the site.
- Finally the advertising banner is displayed. These banners can be customized to show the latest products viewed by the customer in the online store.
- Users click on the banner ad, which goes directly to the product page in your shop.
Advantages
- Retargeting has a greater impact than a traditional advertising campaign, because the message is directed only to users who have already visited your page, so you are most likely to buy.
- The number of clicks is very significant: about 5%, whereas in a traditional campaign it is around 0.5 - 2.5%.
- The conversion rate (number of visitors who become buyers) is also greater, by customizing the banner where the products of greatest interest to the user are displayed.
Disadvantages
- The retargeting does not get new customers since it is directed only to users who have already visited your online store.
- Some users can have a negative reaction given privacy concerns.
I am also referring to the statistics I found in wishpond
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