Is Retargeting Effective?

Retargeting is a formidable weapon in the marketer’s arsenal that has emerged victorious in this digital skirmish. It is a strategy focused on reapproaching users who failed to make a purchase or abandoned their basket. But is it truly effective? We aim to answer that in this article – read on to find out the truth.

What’s Retargeting

Retargeting is not merely an advertising technique; it’s a finely tuned strategy that allows brands to engage with potential customers based on their past online behavior, purchase intentions, and specific needs. In essence, it is a tactic in which you send personalized ads through the open web to those internet users who visited your store yet refrained from making a purchase.

How does it work? Consider this: a user visits your online store. You collect every click, hover, and selection to fully understand your customer’s intent. Did they abandon a cart filled with potential purchases? Perhaps they need stronger encouragement as their intent wasn’t fully commercial yet. In that case, you can forge the data you have into personalized adverts that will build up the commercial intent and lead to a successful conversion.

Retargeting: Importance and Effectiveness in Numbers

To understand the effectiveness of retargeting, let’s turn to the statistics that prove its powerful impact. According to BigCommerce, a staggering 69.82% of customers abandon their carts when shopping online. This is a significant portion of potential revenue left hanging in the balance. Enter retargeting.

Invesp reports that 3 out of 4 online viewers not only notice but actively consider retargeted ads. This statistic underscores the increasing relevance of retargeting in capturing and retaining audience attention. The effectiveness of this strategy is further underlined by the remarkable 400% increase in engagement rates for retargeted ads when compared to standard ones, as highlighted by Vibe.co.

Let’s look at the direct impact of retargeting in more detail.

Precision in Action: Click-Through Rates (CTR)

One of the most compelling indicators of retargeting’s effectiveness lies in its click-through rates (CTR). AdRoll reveals that the CTR of a retargeted ad can be up to 10 times higher than that of a typical display ad. This is not a marginal improvement; it’s a seismic shift in the level of customer engagement and audience interaction.

Entering Your Customers’ Psychology

To add to the previous numbers, let’s take a look at retargeting from your customer’s perspective. According to Vibe.co, approximately 37% of consumers simply like retargeted ads. Why? Because they are interested in purchasing the advertised products to some extent. These ads mirror customers’ demands and desires and provide them with a kind of digital portal leading to the product in the store, which lets them get what they want quickly and effortlessly.

The Takeaway

In conclusion, retargeting is effective. It is so because the ads sent as a part of this strategy are in line with customers’ desires. The statistics don’t lie – retargeting is the perfect approach if you wish to increase your sales and, thus, your revenue.