How Do Retargeting Ads Work and Are They Effective?

Advertising | |By: Morgan Kappler

When visitors come to your website, how many do you think will actually convert to customers after their first visit? The numbers may shock you. Only two percent of visitors convert right away. That leaves 98 percent of shoppers leaving your website without making a purchase.

But that doesn’t mean all hope is lost and you’ve lost them altogether.

In fact, this is a huge opportunity to build brand awareness and reach your customers directly. Retargeting ads can be a valuable tactic for boosting your business. Ad retargeting works to convert visitors into customers by displaying ads that promote your business when they visit other websites.

Retargeting ads work, and they work well. Here’s what you need to know and how to make them work for you.

How do retargeting ads work?

Retargeting ads use website cookies—tiny bits of data that use code to follow users anonymously all over the internet. When someone visits your website, the code deposits a browser cookie, which in turn tells you where to display your retargeting ads. This means that these ads are only displayed to individuals who have already demonstrated an interest in your company or product by visiting your website.

What makes retargeting ads effective?

Retargeting ads work by reinforcing and reminding customers about the website they visited. The more the individual sees the ad, the more traction it gains. Retargeting helps familiarize a brand and will lead potential customers back to your website to complete a purchase.

Isn’t that just annoying for the customer?

Not exactly. Retargeting ads aren’t like the old-school banner ads that intrusively flashed across screens about products people weren’t interested in. Because a person has already shown an interest in your business, products, or services, the ads are incredibly relevant. And that’s what modern consumers are looking for. They want personalized and relevant content that speaks directly to them and their needs.

Also, you can use your ads to offer special discounts or deals to incentivize a return visit that results in a purchase on your website.

Retargeting Best Practices

To get the most out of retargeting, remember the following:

  • Have a clear call-to-action within the ad
  • Ads are most effective when they offer a promotion.
  • Get your timing right. Those shopping for a service, for example, should be retargeted immediately. Shoppers for high-value goods can be retargeted later.
  • Tailor the ads according to the products viewed. If potential customers were looking at hats on a clothing site, for example, they should be retargeted with ads for hats specifically.

Retargeting ads work. Traditional display ads have a click-through rate of 0.07 percent, while retargeting ads have a click-through rate that is ten times higher. On top of that, retargeted visitors are 70 percent more likely to make a purchase. More and more businesses realize the value of retargeting marketing and making it an integral part of advertising campaigns.

To learn more about how to implement a retargeting ad campaign that talks to the right customers, or for anything advertising related, feel free to give us a shout!

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