You’re checking out an outfit on the website of company ‘A’ and you leave the site without making any purchase. When you’re simply surfing the web later you see an ad for the same outfit that you were checking out on company ‘A’ website!
This is the world of ad retargeting. To put it simply, ad re-targeting is where brands try to re-engage with potential customers by showing them ads based on their earlier browsing patterns.
Ad retargeting is relatively new in the digital advertising world but has picked up pace lately. What led to this surge in ad retargeting? Here’s some food for thought: 72% e-commerce shoppers desert their shopping cart before purchasing something (estimated by Forrester Research at $31 billion in lost sales) and only 2% of shoppers convert on their first visit. There now is a relatively easy way to overcome the extremely frustrating scenario of abandoned shopping carts.
Google launched dynamic retargeting in AdWords in June this year. When Google considers a concept important enough to roll out a feature on it, you know you need to pay attention to it. Another social media biggie, Facebook, also launched Facebook Exchange (FBX) early this year to cater to marketers who want to use ad retargeting on Facebook.
Ad retargeting is now hot property in digital marketing. Imagine being able to remind potential customers of what they planned on buying from you even after they have left your website. According to recent research featured in Marketing Land, retargeted ad campaigns are showing 2.5 to 3 times higher engagement rates compared to untargeted ad campaigns among the same customer base.
Marketers are realizing the importance of ad retargeting and are beginning to push more retargeted ads out into the open (in front of potential customers). In a recent study by Andriot Digital and Toluna, 58% US online buyers said that they noticed retargeted ads on other sites (ads for products they had looked for). In the same study, 30% consumers said they had a positive or very positive reaction to retargeted ads. Hopefully in time, with experience and research guiding them, marketers will be able to push both these percentages even higher especially the latter.
Both the digital world and consumers are waking up to retargeted ads positively. If you have also woken up to this exciting marketing opportunity, it’s great. If not, isn’t it about time that you did?
Future of Ad Retargeting
What’s in the pipeline for ad retargeting?
Integration of real-time data into marketing automation tools which will enable digital lead nurturing is the future of ad retargeting. Digital nurturing is where you change the colors of an ad, the calls-to-action or offers depending on how site visitors have engaged with such ads in the past. For example, if you know that a customer reacts best to a particular offer or call-to-action that will reflect in your ad to that customer.
However, the challenge facing marketers here is how best they can integrate real-time behavioral data into their automated marketing campaigns. According to the statistics above, ad retargeting has already evoked positive reactions with consumers and marketers are also deriving a lot out of it. Just consider the possibilities where the power of real-time data is integrated with the efficiency of automated marketing…
Advantages of Ad Retargeting
Helps Improve Conversion Rates
Being able to follow potential customers will help in improving conversion rates. This is because these are people who’ve already evinced an interest in your products during their earlier online interactions.
Boosts Brand Building Activities
Multiple exposures of your ads to potential customers who are looking at buying your products can give your branding exercises extra pep.
Also consider that it makes more business sense to target your ads at people who you know have shown concrete interest in your products than to a set of prospects who may still be a long way off from buying your products.
Increases Brand Visibility, Reach and Awareness
Posting ads on different sites increases visibility, reach and awareness for your brand. One never knows which site a potential customer will visit after yours and ad retargeting gives your ads the kind of ubiquity that would otherwise be too expensive to be worth it.
Power of Persuasion
With ad retargeting, potential customers are exposed to your ads repetitively. The persuasive effect of persistent communication can make potential customers overcome their initial hesitation and take the plunge to purchase.
Got any other thoughts or personal experiences on ad retargeting? Use the comments box below and tell us!