What is remarketing? How does it work? Learn how to implement remarketing tactics to boost conversions.
Remarketing tactics (also known as “retargeting”) are used by digital marketers to re-connect with lapsed users while they browse the web, check their emails, spend time on social media or on their favourite apps.
Generally, these remarketing targets audiences that have visited a website but didn’t convert or complete a desired action. Only 2% of website visitors convert. Remarketing is about getting the remaining 98% back for a second visit. Whilst marketers wish it was that simple, conversion paths can require different steps and touchpoints before a visitor is ready to decide to act.
Before getting down to the purchase stage of the marketing funnel, users need time for exploration and consideration. Whilst a range of digital marketing tactics help marketers attract prospecting customers to visit their organisation’s website, some of these customers will leave and will convert in a different visit or touchpoint. The question is: how do marketers take targeted visitors back to the website? This is where remarketing tactics need to come to the forefront of digital strategy, to reduce the risk of missing potential customers or losing them to competitors.
When users arrive on your organisation’s website, their browsers get tagged with a string of code (a cookie) that follows them around the web and allows you to show them targeted adverts.
With Google Display Remarketing campaigns, your advertisements can appear on any of the 2 million websites and apps that are part of the Google Display Network, but also on YouTube and on Gmail. This is not all, your adverts can also follow users while they spend time on social media. Consider, how many times you’ve been targeted with an ad on Facebook just minutes after visiting the same brand’s website? If you’ve ever wondered how Facebook knows your browsing history – spoiler: remarketing tactics are being used.
All organisations need to do to start re-engaging your audience is to install a remarketing tag on your website. Depending on the channel you want to use, you’ll need Google Analytics tags, Google Ads and/or Facebook pixel. Once the tag is installed it starts tracking users and you can start to segment them into different audience lists based on their online behaviour.
Dropping a cookie onto browsers isn’t the only way advertisers can use remarketing. Another way to target users is to use existing customer lists. If you have your customers’ email addresses, for example, you can retarget them with a dedicated advert providing their email address matches a Google or Facebook profile.
Remarketing tactics can have different objectives depending on the type of business, e-commerce or lead generation.
For e-commerce, the global average cart abandonment rate across different industries is 75%. This makes it very important to create a remarketing strategy that includes basket abandoners. But what about people who visited specific product pages on your website without adding any of them to the cart? How important is it to rekindle their interest towards those products before they buy elsewhere? Not to mention that remarketing tactics allow you to up-sell or cross-sell to past/existing customers. Depending on your customer buying cycle, you can estimate when they’d be ready to make another purchase and retarget them with an advert that shows a more premium product (up-selling) or accessories that match what they’ve just bought (cross-selling).
It’s important to set your remarketing objectives and decide who you want to re-target. Ultimately, this is necessary to be able to create adequate audience lists and use personalisation to make compelling ads.
The average click-through rate for remarketing adverts is 10 times higher than standard display campaigns, but to really see your remarketing adverts attract the attention of users (remember ad blindness is a thing) you need to personalise them and talk directly to your audience. For e-commerce businesses, this is even easier with Dynamic Remarketing that allows you to show the users exactly the products or services they viewed on your website.
Also, why not adding discount codes or free shipping offer to your remarketing adverts? Think tactically, 55% of shoppers abandon carts due to shipping cost, while 23% of them leave because the total order cost was higher than expected. If you really want to win these users, you need to give them a reason to come back.
Remember to set a frequency capping on your ads. An ad campaign that provides a helpful reminder to customers of the purchases their considering and a compelling offer to take a second look at a website is likely to be received positively by consumers.
This helpful nudge can become an annoyance if this is the only display campaign a customer sees. Frequency capping helps marketers prevent remarketing campaigns becoming an annoyance. Ensure that you implement a frequency cap to limit exposure to messaging. You want to get visitors back to your website without bombarding them with repetitive, invasive ads that could have a negative impact on audience perception.
It can take years to finally move house. Customers spend months considering a new car. Purchasing new clothing often takes weeks. We buy a bunch of flowers within a day. Ordering a takeaway takes a matter of minutes. This is a key consideration when planning a remarketing campaign.
Successful remarketing activity considers the length of time that a prospect will be in the market for a product. Shrewd marketers have a strict time cap in their remarketing campaigns that prevents wasting money targeting customers when, in all likelihood, they’ll have already made a purchase elsewhere.
We can help. Kagool is a Sitecore specialist digital agency and we have extensive experience in helping leading enterprises with their digital strategy. Our team can help your organisation set up a digital roadmap that is right for your business and delivers meaningful results. Contact us today to get a free digital marketing audit and to learn more about remarketing for your business.