Retargeting is a form of digital marketing in which you target users who have previously visited your website with banner ads on display networks across the web. In this process, you target users who have visited your site, had an experience with your brand but left without placing an order.
It allows you to convert window shoppers into buyers. Only 2% of users convert on their first visit to an ecommerce store. Retargeting helps you to bring back the rest 98%. It works by keeping track of users who visit your website and displaying customized banner/retargeting ads as they visit other websites.
Let’s assume, Jeff checks out a guitar on an eCommerce site and leaves without placing an order. The sale remains shelved off for the meantime and the effort and cost attached with the entire marketing campaign behind the product goes down the drain.
Retargeting is what saves the sale here. So, when Jeff logs into his system and opens a different website, he is shown banner ads of that same guitar. If there’s a timely offer present at the time, then it might act as an icing on the cake and in all probability, Jeff will be inspired to complete the purchase immediately.
Have you ever wondered how an item you looked at yesterday on GuitarCenter.com keeps popping up in your Facebook timeline? Well, now you know exactly why, and how.
Here’s how it works: you place a small, unobtrusive piece of code, sometimes referred to as a ‘pixel’ on your website. The 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 only to people who have previously visited your site.
Retargeting is so effective because it focuses your ad spend on people who are already familiar with your brand and have recently demonstrated interest. It generates greater online sales by keeping your brand front and center and bringing ‘window shoppers’ back when they’re ready to buy. When a potential customer for your site sees the retargeted ad, or retargeted email, it reminds him of his former desire to purchase and possibly steers him back.
Every time your customer sees your retargeting ad, your brand gains traction and more recognition. The high click-through rates and increased conversions that are typical with retargeting campaigns underscore the value of good branding and repeated exposure.
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