What is Retargeting?
First the problem it helps to solve: Websites that sell products or generate leads typically have a conversion rate of 1 - 5%. That means that 95% of the people who demonstrate interest in your business by taking the time to visit your website leave the site without buying anything or taking any action. Retargeting (sometimes called Remarekting) will start working for you the moment someone leaves your website. The best way to explain may be to use an example.
Let's assume that you recently checked lease rates on a new car at Toyota.com. Since you are only researching, and not ready to buy, once you have found the info you came for you leave the site. Toyota thinks you have left with out taking action like requesting more info, or locating a dealer, which you may want to later on, you're just not ready now. In the days and weeks to follow, you start seeing ads for Toyota, perhaps even the exact model you were considering as you visit other sites like YAHOO, AOL, CNN, ESPN, NY Times, and many others. That's a standard Retargeting campaign at work.
Note the image below, an example of a webpage you might see on the left, and on the right, the ads that would appear later on another website as a result.
This is not a coincidence, this is a Retargeting ad campaign at work. Retargeting enables you to advertise to, and thus stay top-of-mind, among the subset of people who have already visited your website during the past few weeks or months while they are considering your product along with other competing products.
Retargeting is used by hundreds of thousands of companies from Fortune 500 all the way to local businesses. It offers brand reinforcement, it is intuitive, and it focuses purely on your best prospects, during the exact period of time that they are considering your service and your competitors.
Retargeting tends works best for small companies, who make great products (or offer great services), in a very competitive industries.
Why is Retargeting Important?
Retargeting is a crucial tool and should be a cornerstone in every digital marketing initiative. It represents a small portion of your overall ad spend budget and provides way to stay in front of the website visitors that you have already invested in brining to your website.
Further Retargeting is very cost-effective due to the performance it yields in terms of generating sales, leads, and the brand lift associated with it.