What is Retargeting?
You may have heard about retargeting but aren't exactly sure what it is. Well, read on — here's an easy-to-understand explanation.
Unlike typical banner ads, retargeting ads are a form of online targeting advertising and are served to people who have already visited your website or are a contact in your database (like a lead or customer).
How Retargeting Campaigns Work
There are two main types of retargeting: pixel-based and list-based. The way each works is slightly different, and each has different advantages based on your campaign goals.
Pixel-based retargeting is a way to re-display your material to any anonymous site visitor.
List-based retargeting works after you already have someone's contact information in your database.
You can also use lists of your existing contacts for certain types of retargeting ads. To do this, upload a list of the email addresses to a retargeting campaign (usually on a social network like Facebook or Twitter), and the platform will identify users on that network who have those addresses and serve retargeting ads just to them.
Though it's a little less common than pixel-based retargeting, list-based retargeting allows you to have highly customizable criteria for your ads because it's based on more than behavior — you're choosing who goes in which list.
On the flip side, it's possible that a person in your list gave you one email address and the social network another — and in that case, they won't see your ads. Also keep in mind that because you are in charge of uploading and maintaining the list, list-based retargeting also is less automatic and timely than pixel-based retargeting.
If you've ever heard of the term "retargeting," it's likely it was in comparison to remarketing. And while the two are often mistaken for each other, they do have differences. Let's talk about when you would use either.
Retargeting vs Remarketing
While retargeting focuses on pulling in new audiences or customers through ads on social media, email, or other platforms, remarketing often focuses on sales or marketing emails sent to re-engage customers.
Remarketing and retargeting are often confused with each other. Though they share similarities, retargeting allows you to reach new prospects with your ads, while remarketing focuses on re-sparking interest of your company to current or inactive old customers.
A retargeted ad helps those who’ve never heard of your company understand how your product or service fits into their lifestyle or solves a potential problem. It helps you make the message more personal.
When you analyze sales, you can determine what's popular among the audiences you're aiming to reach. For instance, if you find that a certain line of products perform really well among millennials, pull images of them into a carousel ad and use it to retarget customers. The personalization of a separate ad promoting a collection, aimed at a segment of your target market, is one example of how retargeting can be successful.
Take this ad our Creative Director saw today. Despite never having made a purchase from Techxide, this ad showed up on his News Feed:
It's likely he saw this ad because he fits into Techxide's target audience set on Facebook, and because his previous behavior on the social channel involved looking at various creative advertising posts. (At KJB Digital, we regularly enjoy reviewing all sorts of new creative advertising applications.)
On the other hand, to re-engage a lost or inactive customer, you might decide to use remarketing. This tactic aims to improve customer relationships by utilizing marketing tactics that remind and inspire.
Essentially, if you want to give customers an incentive to purchase again from your company, turn to remarketing.
For customers that are already acquainted with your brand and have shown a need for your product, create a personalized message to reignite their interest. For example, if your company offers a membership, remarket to those whose memberships are expiring and are up for renewal.
This email received by our CEO is an example:
This marketing email not only serves as a reminder that it may be time to look at getting some new golf apparel for the spring season, but also the brand's way of reminding our CEO about the benefits of being a Callaway Apparel Rewards Member.
Because he is already familiar with the brand, Callaway was able to use the email to add personal touches and provide a snapshot of what he can enjoy (again) as a member.
Like retargeting, this tactic is successful when messages inspire action. The email's CTAs, like "Browse new styles here!" indicates that options can be perused in one click — an enticing draw. Use remarketing efforts to remind customers of the perks that come with shopping with your brand, like easy shopping access.
Retargeting Ad Goals
Now that we have the background for how retargeting works and the different types of audiences you can segment by, we can focus on goals. The main types of retargeting campaigns you should consider running are those for awareness and those for conversion.
To generate awareness.
Awareness campaigns are useful when you want to re-engage website visitors and tell them about relevant products, features, or announcements. These ads are usually served to pixel-based lists.
The obvious drawback to awareness campaigns is that you're serving less targeted content to people who haven't engaged heavily with your brand. They're not in your contacts database, and often, there are lower expected click-through rates than other types of campaigns.
However, since the goal is to make prospects aware of your business, impressions and engagement are acceptable metrics to track. Often awareness campaigns are precursors to a much more effective campaign goal: conversions.
To drive conversions.
Conversion goals are just that — you want to get people to click on your ad and take a next step, such as filling out a landing page form. Conversion campaigns are best used to align a specific list with a clear next step in the flywheel, and can be measured with typical conversion metrics like website clicks, form submission, and cost-per-lead (CPL).
The best thing about a conversion campaign is that you can use it for multiple parts of the flywheel. Pixel-based ads, for instance, generate leads and will direct people to landing pages where they can give over their information.
List-based ads better qualify those leads. Ads will appear to contacts who gave you limited information and lead them to longer forms with additional fields.
To complete the buyer's journey.
Additionally, retargeting can be used to move qualified leads to complete the buyer's journey cycle. For example, you might use retargeting to send a list of contacts that have downloaded an ebook an invite to sign up for a free trial of your product. When they see how your tool can help them meet their goals, they may be inspired to become a paying customer.
To increase customer lifetime value (CLTV).
Customer lifetime value is the amount of money you can expect from a single customer throughout their entire relationship with your business. When using retargeting, customers are reminded of your brand and encouraged to continue making purchases. The more purchases they make, the higher their CLTV.
To reduce cart abandonment.
Cart abandonment is when a customer places something in their shopping cart in your online store, but leaves your website instead of checking out and making a payment. Retargeting can help you recover these customers that have abandoned their carts and serve as a reminder that the item they were interested in is still available and ready for purchase.
To introduce new products.
When you know that customers have visited your website, made a purchase, or shown general interest in your business, retargeting helps you share new products with them that align with their interests. When they see your ads, you can lead them directly back to your site to discover your new product and entice them to follow through with a purchase.
Regardless of your goal, it is important to align the positioning, creative, and next step in the conversion process — whether that's an offer landing page, site page, or request for more information — with your audience list.
List-based retargeting can have low match rates (users synced with accounts on each platform, usually by email address), so make sure you're fueling your retargeting activities with inbound content.
Retargeting Platform and Tools
There's quite a few options for actually implementing your retargeting. Specific platforms like Facebook, Twitter, and LinkedIn offer native tools, and there are also tons of third-party platforms to do web and social retargeting, and we’ll recommend some below.
SharpSpring Ads, formerly Perfect Audience, is a retargeting tool that allows you to create dynamic retargeting ads and display them in newsfeeds, websites, and social media platforms for your audience members to see. You can measure the impact of your campaigns to ensure you’re on the right track, and use their powerful analytics to get up-to-date information on click through rate (CTR), revenue, and conversions.
AdRoll uses 10+ years of consumer data and behavior to help you create retargeting ads that are effective, relevant, and shown to your audience on the platforms they frequently use. If you’re a HubSpot user, AdRoll can integrate with Marketing Hub, helping you easily sync your existing contacts and create a list of targetable audience members.
ReTargeter helps you create campaigns that are customized to your individual business needs and will help you stand out from your competitors. With this high-quality tool, you’ll be able to keep your business top of mind with your audience, wherever they spend time online.
Criterio helps you retarget your audience through contextual retargeting, where they use commerce data from your existing customers to understand which channels have been successful in inspiring purchases in the past. Your ads are then placed in these same channels for users to see, as they have shown to be high-impact and effective.
Interested in learning more about how retargeting can help your business reach and convert more customers? Reach out and talk to us!