If you’ve ever cruised a retail site, without buying anything, then seen the items you were looking at everywhere over the following days, you’ve been on the customer side of a retargeting advertising strategy.

Retargeting ads do exactly what they sound like: they target prospects a second time. It can feel like you’re having your mind read, but there’s actually a clear technological process to retargeting.

How Does Retargeting Work?

Using website cookies, companies are able to (anonymously) track visitors to their website, and then follow their movement around the internet, which enables them to target very specific ads to prospective customers, wherever they go.

And if you’ve ever bought something based on what you now know was a retargeting ad — so many of us have — you’ll understand how effective this kind of advertising strategy is!

Retargeting vs. Remarketing

Retargeting and remarketing are often confused, no doubt because they sound similar and mean similar things — but they don’t exactly mean the same thing.

Retargeting is an advertising strategy that refers to showing ads to previous website visitors while remarketing is the act of collecting contact information from prospective customers in order to send them outbound marketing campaigns.

When You Should Retarget Your Ads

Retargeting is considered a long-term strategy, meaning it’s most valuable for established brands whose websites get at least 100 unique visitors a month. If that’s you, here are some situations that are ripe for retargeting:

• Increasing brand awareness. The more a prospect sees your brand, and especially the items or services they were initially interested in, the stronger your presence will be in their mind.
• Boosting already-high sales. Popularity and bestsellers are part of a virtuous cycle, and retargeting can help remind prospective customers to jump on something before it’s gone.
• Spotlighting slowly-selling products. If you have inventory that’s not moving quickly on its own, retargeting can be a great way to bolster those sales.
• Introducing new products or collaborations. Like brand awareness, this is about getting your new inventory out there and improving word-of-mouth sales.

Retargeting vs. Prospecting

When it comes to digital marketing, there are two key strategies that businesses use to reach their target audiences: retargeting and prospecting. These terms mean different things entirely and shouldn’t be confused as one.

Retargeting allows businesses to show ads to users who have already visited their website or interacted with their brand in some way. This is done by placing a piece of code, called a pixel, on your website that tracks users’ behavior. Once you have this data, you can then create ad campaigns designed to get them to return to your site and convert.

Prospecting, on the other hand, allows businesses to target new potential customers who have never interacted with their brand. This targets people based on demographics, interests, and behaviors. Prospecting can be an incredibly effective way to reach new customers and grow your business.

How Does Retargeting Fit into Your Marketing Strategy?

Picture this scenario. You see an item you want, whether it’s a new pair of shoes or a piece of furniture, and you talk yourself out of it. “I don’t need that. I have enough shoes/furniture already.”

Then, a few days later, you start seeing ads for that same item everywhere you go online. It follows you around like a lost puppy, and before you know it, you’ve clicked on the ad and made the purchase.

That, my friends, is the power of retargeting ads. This scenario isn’t far-fetched because about 70% of your audience who view your retargeted ads convert.

Here’s how retargeting can fit into your marketing strategy:

• Use retargeting to reach people who have already shown an interest in your product or service. The more times someone sees your ad, the more likely they will remember your brand when they’re ready to purchase.
• Use other marketing channels to generate interest in your product or service, and use retargeting to drive conversions from that interested audience.
• Use retargeting to keep your brand top-of-mind with people who may not be ready to convert immediately.
• Use retargeting to create custom audiences for more targeted campaigns.
• Use retargeting to test different messages and call-to-actions to see what works best with your audience.

How Much of a Budget Should You Allocate to Retargeting?

When retargeting ads, there is no one-size-fits-all answer for how much of your budget you should allocate. The amount you spend will depend on several factors, including the size of your target audience, the platforms you are using to reach them, and the objectives of your campaign.

That said, a good rule of thumb, is to allocate around 20% of your overall ad budget to retargeting and 80% to prospecting. This will give you enough resources to test different strategies and tactics and see what works best for your business.

You can then adjust your marketing budget accordingly when you have more resources at your disposal. Ultimately, the key is experimenting and finding what works best for you. There is no magic number when it comes to retargeting ads, so don’t be afraid to experiment until you find the right mix for your business.

Retargeting Best Practices

Here are some best practices to keep in mind when creating your retargeting campaigns:

1. Keep Your Messages Relevant

Ensure the ads you serve to your retargeting audience are relevant to their interests and previous interactions with your brand. Irrelevant ads are more likely to be ignored and can even damage your brand reputation.

2. Use Dynamic Creative

Dynamic creative is a tool that allows you to serve different versions of an ad to different people based on factors like their past behavior or demographics. This helps ensure that your ads are as targeted and relevant as possible, increasing the chances that they’ll be noticed and acted upon.

3. Consider Frequency

You don’t want to bombard your audience with too many ads, but you also don’t want them to forget about your brand altogether. Strike a balance by keeping your ad frequency at a level that’s neither too high nor too low.

4. Create Eye-Catching Ad Designs

Make sure your ads are well-designed and eye-catching. You want them to stand out from the rest of the online noise. Use strong visuals to grab people’s attention and make them want to learn more about what you’re offering.

5. Test

As with any marketing campaign, it’s important to test different aspects of your retargeting approach to see what works best for your business. Try different messaging, creatives, targeting criteria, and frequency levels to find what performs best with your audience.

Using retargeting ads is a highly effective way to increase conversions and sales. By targeting the people who have already visited your site or shown interest in your product, you can dramatically improve your chances of getting them to take the next step and make the decision to buy something from you. For assistance with retargeting or any of your marketing queries, visit our services or training programs page to see how we can help. Alternatively, you can book in for a Free 30 Minute Discovery Call today!