Have you ever been on a particular website researching a product or service and then left that site and gone to, say, Dictionary.com and then seen an ad for the web site you just came from? ?That’s called retargeting and it’s been around for a few years now. Larger brands have been using retargeting as an online advertising strategy, but I’ll bet you didn’t realize that you can use it too.
I recently received this article from?Maria Shinkevich, CMO for global native advertising company MGID. In it, she shares?seven effective techniques to improve conversion rates, sales and income from behavioral retargeting.[Tweet “Yes! #SMBs YOU can afford retargeting! Here’s how to use it”]
Behavioral retargeting (or behavioral remarketing) has proven to be one of the most-effective tools to improve conversion rates while buying traffic. Retargeting is a marketing strategy that utilizes repeated communication with a visitor that has already been on the website and viewed the product advertised, but has not performed the desirable action. Some advertisers may shy away from retargeting as a core strategy because they are not willing to pay for a consumer who already has contact with the brand or because their understanding of retargeting is too narrow, because they assume it can only “follow” a consumer with ads of the products he or she has already clicked on. However, retargeting has demonstrated increased conversion rates, sales and income.
The marketplace yields good results on retargeting strategies. Following are the tried and true methods advertisers take advantage of the tactic:
1. Use Behavioral Retargeting to Optimize Advertising Cost
Optimizing costs is an increasingly popular scenario that works well for advertisers.
A person who has bought a durable goods product is less likely to buy the same again in the nearest future. In cases such as this, the system can show the ads for, as an example, a tablet computer to all consumers except those who have recently bought a tablet on the advertiser’s e-commerce website.
On the MGID platform, we’ve seen the cost optimization tactic typically result in a 20% cost per conversion reduction.
2. Use Retargeting to Reduce the Number of Abandoned? Carts
A visitor that browses several sections of an e-commerce site and perhaps adds a couple of products to the cart, but then leaves the site without completing the purchase is a good target for re-contacting.
Cookies can record this type of behavior and those visitors that browsed products in a category or went as far as adding a product to the cart, but have not finalized purchase of anything can be added to the list. Websites can then display ads of the very products they added to the cart, but never bought.?[Tweet “Do you use retargeting? How’s it working for you?”]
3. Use Retargeting to Encourage Visitors to Complete their Order
Publishers in highly competitive and budget-sensitive areas, like travel, often get hundreds, even thousands of visitors that review several offers without contacting a manager in live chat or making an online reservation.
A retargeting campaign can target visitors who browsed at least one offer, but left the site without performing a desirable action. The campaign can advertise free personal assistance. In this case, custom tour creation, thus encouraging visitors to contact a manager.
There are also some unconventional methods to solve marketing problems that can’t be solved with other ad technologies:
4. Use Retargeting to Acquire New Audiences
Some retargeting systems have a reverse mode. They memorize? visitors that have or haven’t performed certain actions on your website, so the system already has collected a database of qualified visitors. Now it’s the advertiser’s choice as to the focus of a group with a specific offer or exclude them from the target audience and go for ‘brand new’ visitor who know nothing yet about the brand. This strategy works well for new product launches when the reach of the message is vital, because it offers the opportunity to expand the audience for a particular product or visibility for your brand.
5. Use Retargeting to Promote Products in Adjacent Categories
Consumers that have recently purchased a product in a particular e-store are prime candidates for sales in adjacent product categories. Consumers that have just purchased a tablet, for example, will respond at a higher than average rate to ads on tablet cases and other accessories, such as chargers, headsets, etc. Typical results for this tactic yield a 25% increase in sales in related products and up to 12% lower cost per lead. The setup usually involves inserting tags in some controls on the website in order to be able to track the actions in specific categories.?
6. Use Retargeting to Create and Retain A Pool of Customers
Retargeting can be used to generate and manage consumer loyalty with those that make purchases. An effective tool for this is an email newsletter, however it has limitations. For instance, consumers can immediately unsubscribe from newsletters or not check their email often enough (or not at all). Retargeting can easily solve this problem by working delicately on an intuitive level. For example, a chain of beauty salons could issue a?’virtual club card’ or a discount on hair treatment and use retargeting to advertise it to its current customers discretely when they are browsing the web. The desired consumer behavior is formed even if a person does not visit your site or check their email. The one-time-buyer becomes a loyal ?serial? customer.[Tweet “What do you think about retargeting as an online ad strategy for #SMBs?”]
The audiences are? split based upon the fact that they have or not have the ‘virtual club card’ and run two new campaigns to generate further loyalty:
- For those who ordered at least one service and registered a ‘virtual club card.’ display special offers for club card owners. (Several different offers can be made over six months)
- For those who ordered at least one service but not registered for a club card, display ads featuring the benefits of being a club member.
7. Use Retargeting to Reduce Bounce Rate
Some visitors browse videos but don’t hit the ‘play’ button to run them. This type of behavior results in high bounce rates for the pages and respectively low income from pre-rolls. A retargeting campaign can be set up to catch and eliminate traffic that never hits the “play” button.
By targeting users that showed definite initial interest, advertisers can reduce their bounce rate by as much as?25% and benefit from a more engaged audience.
Retargeting is a powerful tool that can be used to solve quite a number of sophisticated tasks in a company’s visitor acquisition activity. The practical implementation of this technology is not complicated in MGIDs Native Acquisition platform. An advertiser copies and pastes the retargeting tags into all pages of their website. For more detailed campaign tweaks, additional tags may be needed.
Customers can use retargeting for recurrent communication, or on the contrary, pay only for new unique visitors without showing ads to visitors who already know your product or are your existing customers. And remember to track and measure everything properly in order to know the real effectiveness of your campaigns.
Once you know the tricks, behavioral retargeting may become your favorite tool for segmenting the audience and promoting targeted offers to each group of web-surfers.