If you are new to the business of advertising and are hearing all the new buzzwords and are confused about Remarketing and Retargeting. Don’t fret, you aren’t alone.
In a nutshell
Retargeting is targeting a set of customers who have visited your website left without transacting. Generally, Google Adwords is used to “follow” the user across websites.
Remarketing is slightly more complicated. It is targeting a set of people who have abandoned the cart on your website and sending them a reminder email and so on. Upselling and cross-selling are also considered remarketing.
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In the example below, Amazon has reached out to me with a list of business books that I have added in the cart and have not gone further with. This is a perfect example of Remarketing
Retargeting is when you visit a website and drop off and in the example below, I have visited a few product pages on Alibaba. They have made a compilation of all the product pages I have visited and are displaying ads.
Retargeting cost on Google
Retargeting on Google is really dependent on your traffic numbers. Once a visitor visits your website and does not engage, then an ad is sent out, set to convert them.
Generally, retargeting campaigns are some of the most cost-effective because the customer has already visited the website. On average, a remarketing campaign is 50% lesser than that of your normal PPC.
So if your PPC costs $2, then a retargeting campaign will be around $1.
Types of Remarketing
There are various ways to remarket. Here are the most popular ones
Simple remarketing is your standard affair where a Google display ad is used to follow the user when they browse on other websites.
Dynamic Remarketing is one of the most interesting remarketing strategies with the most ROI because of its specificity. Say a user visits a specific product page drops off, or they add to cart and drop off or they go to the shipping page and drop off. Dynamic remarketing tries to understand the problem at hand and advertises accordingly.
So a dynamic remarketing campaign can be an ad with a discounted pricing for the particular product or an ad that announces free shipping. This works on the psychology of the consumer.
Video remarketing is pretty self-explanatory when users have visited your website and have not converted, they see video ads on sites like Youtube.com. Video ads are pretty effective because of their visual nature and are one of the popular remarketing strategies.
Email remarketing works seamlessly for e-commerce companies that keep a track of user’s carts and their wishlists. An example of an email remarketing strategy is when an email is sent to the user regarding their abandoned cart.
Frequently asked questions about Remarketing and Retargeting
What is AdWords remarketing?
Using Google Adwords to serve ads to customers who have abandoned their carts for some reason or the other to improve the conversion rate is called Adwords remarketing.
Does retargeting really work?
Retargeting works because it addresses the reasons a customer left and gives the business a second opportunity to take corrective action.
What are the possible reasons a customer might have left?
- The products were too expensive.
- Shipping costs were high
- They found an alternative
- The time to deliver the product was too long
- They just decided not to purchase
How much should I spend on retargeting?
Spending on retargeting is a tricky topic because it is dependent on the customer’s behaviour. Generally, a 30 day period is what it takes to convince a customer. Spending 20% of your ad budgets on retargeting will be a good figure.
What does retargeting mean in marketing?
Retargeting is all about making an almost customer a customer by serving them relevant ads and providing them incentives to convert.
Retargeting works based on cookies that get logged on to a user’s browser when they visit a website. These cookies track the user and follow them on all the websites they visit with very specific ads. Now, this may seem too intrusive, but here are the benefits.
- The users see ads that are relevant to them and ones that they have shown interest in
- More often than not, the seller gives a discount to attract the user back, which is money saved for the user
- The seller is also able to improve his conversion rate on ad spends
So why is Remarketing powerful?
Remarketing is powerful because you as an advertiser can target the customer based on the reason they left the site without transacting.
When the reasons for not buying are clear, you as a marketer can create very specific ads that cater to the reason. If the products are expensive, you can give them a small discount. If shipping is too much, you can give them free shipping. If they want the product faster you could give them a faster delivery service for a higher price.
Remarketing kind of works like Déjà vu, where a product keeps coming in front of your eyes and entices you.
Goals based Remarketing
If you are a hardcore marketer then you know the metrics that are important to your business. If you have been tracking for a while then you know the metrics are different for a user who purchases and the user who doesn’t.
For example, more often than not a user who stays for longer than a few minutes and who visits more than a few pages are likely to make a purchase. This is subjective and changes based on the business. If you are able to identify the users who have reached the favourable metric scale, then you can push that decision faster by pushing out a remarketing ad.
Here are some Ideas. Find out what X is for your business.
- Target users who have spent more than ‘X’ minutes on your site
- Target users who have visited more than ‘X’ pages on your site
- Target visitors who have gone to the Checkout page and haven’t transacted
- Target visitors who have interacted with your content on your site but haven’t made a transaction
- Target users who have come multiple times to your website but haven’t transacted
Sometimes people from a certain demographic are more likely to purchase and people searching for a particular product are more likely to purchase as well. From your analytics understanding your best selling demographic and best-selling products to make a sale.
You can also remarket effectively during the holiday season because people are more likely to buy a product at that time.
Another use case is, collecting your users' date of birth of anniversaries where they are more likely to purchase as well.
That is the power of Remarketing and hopefully, this article has given you ideas to execute. If crafter carefully, Remarketing can give you unprecedented returns that is unheard of in the e-commerce space.