Retargeting is a powerful digital marketing technique used by e-commerce businesses to re-engage customers who have shown interest in their products or services. It involves tracking visitors to your website and then serving them targeted ads as they browse other sites on the internet. This glossary article will provide a comprehensive guide to understanding retargeting campaigns for e-commerce.
Retargeting is also known as remarketing. It's a form of online advertising that can help you keep your brand in front of bounced traffic after they leave your website. For most websites, only 2% of web traffic converts on the first visit. Retargeting is a tool designed to help companies reach the 98% of users who don’t convert right away.
Retargeting works by keeping track of people who visit your site and displaying your retargeting ads to them as they visit other sites online. The technology uses a simple Javascript code to follow your audience around the Web. This code, or pixel, is unnoticeable to your site visitors and won't affect your site's performance. Every time a new visitor comes to your site, the code drops an anonymous browser cookie. Later, when your cookied visitors browse the Web, the cookie will let your retargeting provider know when to serve ads, ensuring that your ads are served to only those who have previously visited your site.
Retargeting is so effective because it focuses your advertising spend on people who are already familiar with your brand and have recently demonstrated interest. That’s why most marketers who use it see a higher ROI than from most other digital channels.
There are two main types of retargeting: pixel-based and list-based. Pixel-based retargeting is the most common type and works by using cookies to track when someone visits your site. When they leave, your retargeting provider knows to serve them ads based on the pages they visited on your site. List-based retargeting, on the other hand, works after you already have someone's contact information in your database. You can use list-based retargeting when you want to serve specific ads to a set group of contacts.
Both types of retargeting can be highly effective. However, the success of your retargeting efforts will largely depend on the quality of your original traffic and the effectiveness of your ad creative and copy.
Retargeting has several benefits for e-commerce businesses. First, it can significantly boost ad response rates and increase conversions, as you're reaching people who have already shown an interest in your products. Second, it can help build brand awareness by keeping your brand at the forefront of consumers' minds. Third, it can provide valuable insights into your audience's behavior and preferences, helping you refine your overall marketing strategy.
However, it's important to note that retargeting is not a standalone strategy. It should be used as part of a broader digital marketing approach that includes a mix of different tactics, such as SEO, content marketing, and social media marketing.
Setting up a retargeting campaign involves several steps. First, you need to choose a retargeting platform. Some of the most popular platforms include Google Ads, Facebook Ads, and AdRoll. Once you've chosen a platform, you'll need to place the retargeting pixel on your website. This is a small piece of code that will track visitors to your site.
Next, you'll need to create your retargeting lists. These are lists of people who have visited your site that you want to target with your ads. You can create different lists for different types of visitors. For example, you might have one list for people who visited your homepage, another for people who visited a product page, and another for people who abandoned their shopping cart.
Once you've set up your retargeting lists, you'll need to create your ads. These should be highly targeted and relevant to the people you're trying to reach. For example, if you're retargeting people who abandoned their shopping cart, you might create an ad that reminds them of the products they left behind and offers a special discount to encourage them to complete their purchase.
When creating your ads, it's important to consider the design and copy. The design should be eye-catching and consistent with your brand, while the copy should be compelling and include a clear call to action. It's also a good idea to test different versions of your ads to see which ones perform best.
Once your retargeting campaign is live, it's important to monitor its performance and make adjustments as needed. This might involve tweaking your ad creative, adjusting your bids, or refining your retargeting lists. It's also important to keep an eye on your conversion rates and ROI to ensure that your campaign is delivering the desired results.
Remember, retargeting is not a set-it-and-forget-it strategy. It requires ongoing management and optimization to be successful. But with the right approach, it can be a highly effective tool for boosting your e-commerce sales.
There are several best practices to keep in mind when running a retargeting campaign. First, it's important to segment your audience. This means creating different retargeting lists for different types of visitors. By doing this, you can serve more relevant ads and increase your chances of conversion.
Second, it's important to use frequency capping. This is a feature that allows you to limit the number of times a person sees your ad in a given period. Without frequency capping, you run the risk of annoying your audience with too many ads.
Personalization and relevance are key to a successful retargeting campaign. This means serving ads that are relevant to the individual's browsing history and interests. For example, if someone visited a product page on your site, you might serve them an ad featuring that product. The more relevant your ads, the more likely they are to convert.
It's also important to personalize your ads as much as possible. This might involve using the person's name, referencing a specific product they viewed, or offering a discount on items they've shown interest in. Personalization can significantly increase click-through and conversion rates.
Testing and optimization are crucial for any digital marketing campaign, and retargeting is no exception. This might involve testing different ad creatives, targeting options, and bidding strategies to see what works best. It's also important to continually monitor your campaign's performance and make adjustments as needed.
Remember, the goal of retargeting is not just to get people to click on your ads, but to convert them into customers. So don't just focus on click-through rates, but also on conversion rates and ROI.
While retargeting can be highly effective, it's not without its challenges. One common challenge is ad fatigue. This occurs when people see your ads too often and start to ignore them. To combat ad fatigue, it's important to use frequency capping and to regularly refresh your ad creative.
Another challenge is privacy concerns. Some people may not like the idea of being tracked online and may opt out of your retargeting efforts. To address this, it's important to be transparent about your retargeting practices and to offer people a way to opt out if they choose.
Attribution can be a challenge in retargeting. This is because it can be difficult to determine whether a conversion was the result of a retargeting ad or another marketing effort. To address this, it's important to use an attribution model that takes into account all of your marketing efforts.
For example, you might use a last-click attribution model, which attributes the conversion to the last ad the person clicked on. Or you might use a multi-touch attribution model, which attributes the conversion to multiple ads that the person interacted with along their journey.
Ad blockers can also pose a challenge for retargeting. These are tools that people use to block ads from appearing on their screen. If someone is using an ad blocker, they won't see your retargeting ads.
To address this, it's important to provide value in your ads and to use non-intrusive ad formats. This can help encourage people to whitelist your site and allow your ads to appear. It's also a good idea to diversify your marketing efforts and not rely solely on retargeting.
Retargeting is a powerful tool for e-commerce businesses. It can help you re-engage visitors who have shown interest in your products, boost conversions, and increase your ROI. However, it's not a standalone strategy. It should be used as part of a broader digital marketing approach that includes a mix of different tactics.
By understanding how retargeting works, setting up your campaign correctly, following best practices, and addressing common challenges, you can maximize the effectiveness of your retargeting efforts and achieve your e-commerce goals.