Retargeting display advertising, also known as display retargeting or remarketing, is a type of digital advertising that enables businesses to target users who have already interacted with their brand or website. It works by showing relevant ads to these users as they browse the internet to encourage them to return to the site and complete a desired action, such as purchasing, filling out a form, or subscribing to a service.
Retargeting display advertising can have a significant impact on a company’s return on investment (ROI). Retargeting allows advertisers to target users who have previously interacted with their website or shown an interest in their product or service, which can increase the likelihood of conversion.
Moreover, retargeting display ads can also help reduce a customer’s cost per acquisition (CPA), as it can be less expensive to retarget users who have already shown an interest in a product or service than to acquire new customers.
What is Pixel-Based Retargeting?
Pixel-based retargeting uses a pixel, or a small piece of code, to drop a cookie onto the user’s browser, allowing the advertiser to follow the user as they browse the internet and display targeted ads. This method is popular because it enables advertisers to track users across multiple devices and platforms and create highly targeted ads based on their browsing behavior.
For example, users visit an e-commerce site and add a product to their cart but don’t complete the checkout process. In that case, retargeting display can be used to show them ads featuring the same product or similar items to encourage them to return to the site and complete the purchase. It is often combined with other retargeting methods to develop a more comprehensive strategy.
How Do You Begin Pulling Back Conversions to Your Site?
Retargeting display can be executed in several ways, including through ad networks, social media platforms, and search engines. Ad networks such as Google Display Network and Facebook Ads enable online retailers to show retargeted ads to users across a network of websites. And social media platforms like Facebook and Instagram allow businesses to target users who have engaged with their pages or ads in the past. Search engines like Google also offer retargeting options, allowing companies to show ads to users who have previously searched for specific keywords or visited certain pages.
Why Retargeting Display is Important
Retargeting display is a valuable tool for businesses for several reasons. Firstly, it enables them to reach users who have already shown an interest in their brand or products, increasing the likelihood of conversions and sales. Retargeting display can also help businesses to build brand awareness and loyalty, as users are reminded of the brand as they browse the internet.
Retargeting display can also be more cost-effective than other forms of advertising, as businesses only target users who have already interacted with their brand rather than casting a wide net and hoping to reach new users. It can be a more efficient way to allocate advertising budgets and provide a higher return on investment.
Best Practices for Retargeting Display
While retargeting display can be a powerful tool, several best practices should be followed to ensure it is used effectively. These include:
- Segmenting audiences: It’s essential to segment audiences based on their previous interactions with a brand or website, such as whether they have abandoned a cart, browsed specific products, or visited certain pages to show that targeted ads are relevant to the user’s interests and previous actions.
- Setting frequency caps: Retargeting display can quickly become annoying to users if repeatedly bombarded with the same ads. Setting frequency caps limits the number of times a user sees a retargeted ad, ensuring they don’t become overwhelmed or irritated by the messaging.
- Using compelling ad creative: Retargeted ads should be visually appealing and feature messaging encouraging users to return to the site and complete a desired action. A/B testing can be used to determine which ad creatives are most effective for different audiences.
- Monitoring performance: It’s important to regularly monitor the performance of retargeting display campaigns to determine what is working and what can be improved. Metrics such as click-through rates, conversion rates, and cost per acquisition can be used to evaluate performance and make data-driven decisions about campaign optimization.