30 Nov Your Guide to Retargeting
Behavioural retargeting, or just retargeting or remarketing is the practice of advertising to people based on their past online behaviour. In layman’s terms, adverts for products that you’ve browsed mysteriously follow you around the internet, showing everyone what you’ve been looking at.
We’ve all heard the story, a boyfriend is shopping for engagement rings online. Only for the surprise to be spoiled as the girlfriend sees nothing but engagement ring banner ads next time she uses the internet. Surprise spoiled.
This situation was one of the reasons why ‘Incognito Mode’ was introduced into internet browsers (we all know the other reason).
How does retargeting work? I’m glad you asked.
What kind of sorcery is this?
Retargeting isn’t magic. It’s a type of digital advertising that targets users that have performed a certain action. Typically this action is to access a particular page on a site.
This page will have a tracking code (if you want to sound like you know what you’re talking about, call it a pixel) installed that adds one of those dreaded browser ‘cookies’ to the user. This cookie follows the visitor after they leave your site and carry on on their subsequent internet journey.
The cookie records that his person has been on your website and completed the action that indicates you would like to retarget them. They have been added to your retargeting providers’ lead list. This means that if there is available ad space on the site that the ex-visitor is now viewing, and your retargeting bid has won the space, your advert will appear on the page.
The amount that it costs to win the bid depends on the type of page that you want to appear on, and the audience demographics that you are targeting.
Retargeting normally has 3 pricing structures. Choosing the right one for you depends on the objectives you want to achieve:
CPM: Cost per mill — this means you will be charged per thousand impressions of your ads. Typically this approach is useful when you’re trying to raise awareness, or are trying to shovel a load of people into your sales funnel.
CPC: Cost per click — means that you will be charged per user that clicks onto your ad is taken to your landing page.
CPA: Cost per action — does pretty much exactly what it sounds like. You are only charged after a visitor has completed a certain action on your site. Typically this could be a conversion like signing up to a meeting or completing a purchase.
Retargeting is available on social media networks natively and on other sites via Google.
Why is this a thing?
So, that’s what retargeting is. But what is the point?
Well, a typical conversion rate for a website’s homepage is 2.7%. This means that 92.3% of visitors to a website don’t do the desired action the first time. This could be because they are browsing and comparing offerings, or they need to ask permission, or just aren’t ready to commit.
Retargeting gives them a second opportunity to be converted. You already know that they are familiar with your brand, so can market to them as a warm lead. According to Criteo, retargeted visitors are 70% more likely to complete a purchase than ‘cold’ visitors on your site.
It also gives you the opportunity to try a different message to attract these people. They’ve been on your website already so they are already at least slightly interested in your brand, retargeting gives you the opportunity to hit them with another benefit of your business.
Combined with skilful use of A/B testing and landing pages, you can create an enticing and new value proposition for your retargeted targets, mopping up ‘the ones that got away.’
If you’ve got any questions about remarketing or how it can be used effectively in conjunction with your digital marketing strategy. There’s a great agency that could help…