What is Retargeting?
ELI5 — The Simple Version
Imagine you own a small bakery in town. A customer comes in, looks at your tasty pastries, but leaves without buying. The next day, you see them at the park and give them a flyer with a special discount on the pastry they admired. This reminder brings them back to your shop, and they finally buy it. That's retargeting! Now, think of your website as this bakery. People visit, look around, but sometimes leave without buying. Retargeting helps you follow these visitors online with ads reminding them of what they liked but didn’t buy. It's like saying, 'Hey, remember us?' Why is this important? Retargeting turns window shoppers into buyers by keeping your business fresh in their minds, boosting sales without always needing new customers.
Technical Deep Dive
Definition
Retargeting is a digital marketing strategy that involves displaying ads to users who have previously visited a website but didn't complete an action, like a purchase. It uses browser cookies or pixel tracking to track user behavior and show relevant ads on other websites or platforms they visit.
How It Works
- 1.A user visits a landing page but leaves without converting.
- 2.A tracking pixel or cookie is placed on the user’s browser.
- 3.The user browses other websites or platforms.
- 4.The retargeting platform detects the cookie and displays tailored ads to the user.
- 5.The user clicks the ad and returns to the original site to complete the desired action.
Key Characteristics
- Behavior-Based: Uses past website behavior to tailor ads.
- Cross-Platform: Works across different websites and social media platforms.
- Personalized Messaging: Ads customized based on user behavior.
Comparison
| Concept | Definition | Key Difference |
|---|---|---|
| Retargeting | Ads for past visitors of a site | Focuses on re-engagement |
| Remarketing | Often used interchangeably, but typically via email | Email-based, broader term sometimes |
| Display Ads | General online ads shown to broad audiences | Not based on past behavior |
Real-World Example
A study by Criteo showed that retargeting can lead to a 70% increase in conversion rates. For example, an e-commerce brand using Google Ads for retargeting saw a 30% boost in their ROI within three months by targeting ads on both the Google Display Network and YouTube.
Best Practices
- Use tools like Google Optimize or Optimizely to test different ad messages.
- Segment your audience based on behavior to tailor ad content effectively.
- Set frequency caps to avoid overwhelming users with too many ads.
Common Misconceptions
- Myth 1: Retargeting is annoying; users dislike it. Debunked: When done correctly, with relevant and spaced-out ads, users often find them helpful.
- Myth 2: Retargeting is only for large businesses. Debunked: Small businesses can also benefit significantly using affordable platforms like Facebook Ads.
Related Terms
- Conversion Rate Optimization (CRO)
- A/B Testing
- Pixel Tracking
- Display Advertising