Digital remarketing, also known as retargeting, is a marketing strategy aimed at re-engaging users who have previously interacted with a business’s website, app, or other digital assets but have not converted into customers or completed a desired action, such as making a purchase or signing up for a newsletter.
Generally, 4% of visitors convert on the first visit to a website. Retargeting focuses on re-engaging the other 96%. With retargeting you can target users that have visited your site but leave your site without taking the desired action. Retargeting will show them ads as they surf around the Internet, with the intent of getting them to come back to your site to take a desired action (buy).
Here’s how digital remarketing typically works:
- Visitor Tracking: When users visit a website, a piece of code, often called a pixel or a tag, is placed on the website. This code tracks users’ behavior, such as the pages they visit, products they view, or actions they take.
- Cookie Placement: When users interact with the website, a cookie is placed in their browser. This cookie allows the website to recognize the user when they visit other websites or platforms within the ad network.
- Targeted Advertising: Based on the data collected from user interactions, businesses can create targeted advertising campaigns to reach these users across various digital platforms such as social media, search engines, or other websites within the ad network.
- Re-Engagement: Users who are retargeted with relevant ads are more likely to revisit the website and complete the desired action, whether it’s making a purchase, signing up for a service, or engaging with content.
Digital remarketing can help a business in several ways:
- Increased Conversions: By targeting users who have already shown interest in the business or its products/services, remarketing campaigns can increase conversion rates and drive more sales or leads.
- Improved ROI: Since remarketing targets users who are already familiar with the brand, the cost per acquisition (CPA) tends to be lower compared to acquiring new customers, resulting in a better return on investment (ROI).
- Enhanced Brand Awareness: Remarketing keeps the brand in front of potential customers, reinforcing brand awareness and reminding users of products or services they may be interested in.
- Personalized Marketing: By analyzing user behavior and preferences, businesses can deliver personalized and relevant ads, creating a more engaging and tailored experience for the user.
- Reduced Cart Abandonment: For e-commerce businesses, remarketing can help reduce cart abandonment rates by reminding users of products they’ve shown interest in but haven’t purchased yet.
Overall, digital remarketing is a powerful tool for businesses to re-engage with potential customers, increase conversions, and improve overall marketing performance.