Customer conversion is the ultimate goal for businesses. Although actual conversion goals may vary for each one (i.e. sales, leads, sign ups), we all strive to capture that customer upon visiting our website or app. However, this is not always the case. According to AdRoll, only 2% of first time visitors of online stores actually convert. So what do we do then with the staggering 98%? This is where remarketing comes in.
Simply put, retargeting is a technology that usescookies that enable you to tag and follow your target audience upon visiting your website. This allows you to serve highly-targeted ads when your visitor browses the web other than yours.
But just how effective is retargeting? Well, let’s take a look at the numbers.
- Website visitors retargeted with display ads are 70% more likely to convert.
- Average click through rate (CTR) for display ads is 0.07% while retargeted ads bring in 0.7% CTR (10x more!)
- 72% of online shoppers are likely to abandon their carts with only 8% of them returning without retargeting. But with retargeting, the percentage of returnees to complete their purchase goes up to 26%.
Those numbers can be exciting and I’m pretty sure you can’t wait to go ahead and implement it. But before you do, here are 3 tips to help guide you into doing it effectively.
Segment Your Audience
One key driver to effective retargeting is audience segmentation. This is hinging on the fact that each of your visitor has a different intent in mind when they go to your site. Some may visit to see what’s in store, while others are really looking for something more specific.
Segmenting your audience allows you to craft personalized communication based on the customer journey or interest. For example, visitors who browsed the catalogue can be grouped under “Evaluation”, those who abandoned their carts can be under “Purchase”, and you can even segment those who completed the purchase so as not to subject them to retargeting.
From here you can formulate personalized collaterals that can capture their interest and encourage conversion. You can choose to give a limited time discount offer for the “Evaluation” group or a free shipping offer for the “Purchase” group.
Ad Timing
It is also important to keep in mind how long we would want to deliver retargeted ads to our audience so as to avoid ad fatigue. Although our ads are relevant, its effectivity may vary based on frequency and duration. Some experts would suggest 7-12 ads per month, others go as much as 17-20 ads per month.
As for the duration, you can also use the average time it takes for your audience to convert as the benchmark. So if it takes 2 -3 months for a customer to go full circle, you may opt to run your retargeting ads well within that time period.
Optimize Your Creatives
Your ad material plays a big role in running a successful retargeting campaign. Design should be cohesive with your brand with a clear call to action. You can even use the actual items your audience was looking at in your website to further fuel their interest.
Producing several ad designs and doing A/B testing are also recommended. This makes sure that you only run ads that are highly engaging, allowing you to optimize campaign performance and gives you insight on which design and message resonates with your target audience.
Learn more about retargeting and find out how we can start doing it for your own brand now. Drop us a line at newsletter@adspark.ph and we can start the ball rolling.
Sources:
AdRoll: What is Retargeting? Retrieved from https://www.adroll.com/getting-started/retargeting
Muruganandam, C. (2016, February) 17 Retargeting Ad Statistics that will make you Retarget Right Now. Retrieved from
https://yourescapefrom9to5.com/retargeting-ad-statistics-infographic
Ilana, 8 BEST PRACTICES FOR RUNNING A RETARGETING CAMPAIGN Retrieved from
http://blog.retargeter.com/retargeting/8-best-practices-for-running-a-retargeting-campaign
Wheeler, A. (2013, October) 5 Tips for Running a Successful Retargeting Campaign
https://moz.com/blog/5-tips-for-running-a-successful-retargeting-campaign-whiteboard-friday
Arsenault, M. (2015) Remarketing vs. Retargeting: What’s the difference? Retreived from http://rejoiner.com/resources/remarketing-vs-retargeting-whats-the-difference/
