Did you know that only two per cent of your website visitors convert the first time they come across your website? Remarketing, often also referred to as retargeting, helps you stay on the minds of the 98% of people who didn’t convert on that first visit.
Through a remarketing campaign, you can serve tailored ads to your website visitors that remind them of products they’ve shown interest in or offer them a discount or more information on your offering to make them likelier to convert. Retargeting campaigns are highly effective and good value for money because you’re serving ads to people who’ve already shown an interest in you, so they’re likelier to convert.
In today’s blog post, we’ll go over how remarketing works and the top five benefits of running retargeting campaigns.
What is remarketing?
Here’s how remarketing works: when someone visits your website, a cookie gets dropped onto their browser. This cookie tracks them as they continue to browse the internet. Through a remarketing campaign, the cookie will then place targeted ads onto websites they visit. This way, your website visitors will continue to build awareness of your brand and get likelier to convert over time as they see more of your ads.
If you’re worried about people getting annoyed by repeatedly seeing your ads, don’t be: seeing your ad several times actually increases your conversion rate. You should create some variations of your ads to fight ad fatigue but rest assured that you won’t seem annoying or pushy by running remarketing campaigns. In fact, on the fifth time someone sees your ad they’re twice as likely to convert as the first time they had it served to them.
Remarketing vs retargeting
Just a quick note here: the words “remarketing” and “retargeting” are used pretty interchangeably, so there’s no need to get stuck on the semantics here. We often use the word “remarketing” often because its meaning is clearer to PPC novices, but we don’t have a strong preference.
5 benefits of remarketing
1. Increased brand awareness
People often come to our remarketing clients saying how impressive it is that their ads seem to be everywhere. People who don’t understand retargeting often think you’re quite the bigwig based on your remarketing ads because they think everyone else sees them too when in reality, they’re being targeted with pinpoint accuracy.
Apart from making you seem like a big shot and an industry leader, remarketing also helps create brand awareness in your target audience. People have busy lives, so making a lasting impression on the first try is incredibly tough. If however your audience keeps coming across your brand across the internet, they’ll build a stronger awareness of your company over time.
Google Display and Facebook remarketing allow you to strengthen your message through visual elements like graphics, pictures and video, making them a great fit for building a strong brand identity in the minds of your audience.
2. You can offer highly targeted offers to your audience
You can get pretty surgical with your targeting when it comes to remarketing. Because you know what people in your retargeting audience have shown interest in, you can take a tailored approach that makes them likelier to convert. We recommend that you divide your remarketing audience into a few different sections and create separate campaigns for each.
You can target who didn’t convert, people who did convert but who could benefit from some of your other products or services and those who showed interest in a specific product. You can exclude visitors who bounced from these campaigns: these are people who visited your website but exited without clicking to any other pages from your landing page. As these people are less likely to convert, you can set a lower budget for them in their own campaign or exclude them from your retargeting efforts completely.
3. Higher conversion rate
Remarketing statistics make it clear that this campaign type is highly effective. The first one to look at is conversion rate. After all, if remarketing ads didn’t convert, there wouldn't be much point to serving them. As we already mentioned above, the more times people come across your ads, the likelier they are to convert.
In fact, some research shows that people retargeted with display ads are 70% more likely to convert and another study revealed that 91% of marketers had found remarketing ads to perform as well or better as other ad types, such as search or email.
As you serve ads to people who have already entered your sales funnel, you get to approach them from other angles, making them even likelier to convert. You could use ads to answer any objections that are common among your prospects, offer discounts or free add-ons to products they’ve already bought.
4. More affordable conversions
It makes sense, doesn’t it? Remarketing targets a limited pool of people who’ve previously shown interest in your company or the products or services it offers, so these people are likelier to convert. And because you have a more limited pool of people to target, it’s cheaper to build brand awareness by serving ads to the same person multiple times. One study found that you could shave off an impressive 44% of your cost per acquisition.
5. High ROI
The cost per click (CPC) for remarketing ads is lower across the board, with clicks on Display retargeting ads often costing half of what they do in Search. Coupled with affordable conversions, as we went through above, retargeting ads offer great ROI.
In our opinion, remarketing ads offer the best value for money out of all the marketing activities you could implement. It’s also one of the fastest to show results. In fact, our agency has run campaigns that have beaten our client’s quarterly sales targets within just days of the campaign launch.
How to get started in remarketing
For effective remarketing, you’ll need a strong campaign. You can choose to serve remarketing ads based on specific actions your website visitors take. These actions can be divided into two categories: on-site and off-site events.
Targeting based on off-site actions is targeting people who haven’t necessarily interacted with your site before but have a lot of similarities with people who have. You could target people who look up specific terms on search engines or visit sites similar to yours. Meanwhile, targeting based on on-site events means serving ads to people who have already interacted with your company’s online presence.
You could serve targeted ads to people based on product pages they’ve visited, what channel they found your site through, whether they’ve signed up to your email list and products they’ve added to their shopping cart but haven’t checked out.