The Value of Remarketing in Increasing Revenue
Many people don’t buy a product the first time they see it. Maybe they don’t need it yet, or they can’t afford it at that time. But by clicking on your ad or visiting your website, it indicates that they are interested in your brand. Give your previous users another chance to complete shopping for your items through remarketing.
What is Remarketing?
Remarketing is a technique that allows you to position an ad to those who have previously visited your site or clicked on your banner ads. Marketing brings visitors to your ads and if they don’t purchase, use remarketing to bring them back to your website and convince them to buy your item.
Since you’re targeting an audience who already knows your brand, there’s a higher chance of converting them into customers. The key to remarketing is to show your ads when the users have the time (and hopefully, the budget) to move further into the sales funnel.
Remarketing vs. Retargeting
Is Remarketing and Retargeting the same?
We noticed several remarketing vs. retargeting debates circulating online. Many people use these terms interchangeably because of their common practice.
In terms of goals, both techniques aim to convert previous website visitors into paying customers. Their main difference is in the strategy.
Remarketing and retargeting are both effective methods, so pitting one against another doesn’t make sense. When done right, the combination of these two can boost the conversion rate dramatically.
Note: For the sake of uniformity on this post, we will only use the word “remarketing” to mean both remarketing and retargeting.
How Does Remarketing Work
Think of the cookie as a blueprint that tags the online behavior of the user. Digital marketing relies on the data provided by these cookies to get a clue on the user’s interests. These cookies give marketers a way to determine what the prospective customer is searching for.
When the target shows similar patterns of visited websites and clicked ads, there is a higher possibility that this user will engage into your display ad. Hence, showing the right ad at the right time is crucial to the success of the campaign.
To better understand how remarketing works, let’s cite a fictional example.
John visits “TennisPlanet” and looks at some tennis shoes, but doesn’t buy them. The next day, he visits another website, say a news portal. TennisPlanet is running a marketing campaign that works on this news website. John sees an ad by TennisPlanet showing the same or similar shoes he was looking at the previous day.
In this scenario, the ad aims to convince John to buy those shoes. If John has the time, money, and in a good mood, who knows, he might actually make that purchase.
Benefits of Remarketing
Just like other marketing campaigns, you can achieve many goals with remarketing. Aside from increasing conversions, it can also help you build awareness on a specific product or service or improve the effectiveness of lead generation campaigns.
In eCommerce, remarketing can effectively convince shoppers to complete their abandoned carts by showing the product the user added to the cart but left the site without finalizing the sale. Other benefits include:
Guide Users When Making the Purchase
For first time users, the idea of online shopping can be intimidating. With many horror stories of scams, many are afraid to try it. If they need help in securely buying your product, they must have a way to reach your support team any time.
Regain Lost Web Traffic
Use marketing reports to analyze the possible causes of a high abandon rate. Act on these issues then set-up a strategy to convince previous users to revisit your site.1
Typically, remarketing costs lower than the standard ad types. While the average cost per click (CPC) on the Search and Display Network is between $1 to $2, the remarketing ad is between $0.25-$0.60. Just like a PPC ad campaign, with remarketing, you will only pay for every successful click. If they don’t click, you don’t have to pay, but you still leave a visual reminder of your product to the user.
Remarketing is all about getting more than what you paid for. This goal is highly achievable since many users are more likely to respond to personalized ads. Aside from converting to sales, it also increases the time a visitor stays in your site resulting in deeper user engagement.
How to Create a Remarketing Campaign
The process of doing remarketing depends on what channel you’re using. Remember that there are many marketing platforms available for you- Google Ads, Facebook Ads, Instagram, LinkedIn, and other social media and search engines. Each channel has its way of creating a campaign.
To set-up remarketing for display ads on Google, follow these simple steps:
1. Make sure that you have a remarketing tag (or pixel) for your website. Click this link to learn how to tag your site for remarketing.
2. Sign in to your Google ad account.
3. On the Page menu, click Campaigns.
4. Click the plus (+) sign to create a new campaign.
5. Under the “Goals” section, pick the result you want to achieve.
6. From the “Campaign Type” option, select Display Network.
7. Fill-out the information needed for the required parameters.
8. Click “Additional Settings” for more options. Select the options that you need.
9. Look for “Audiences” in the “People” section.
10. Click Remarketing.
11. Click the checkbox next to the audiences that you like to target.
12. Click Save, and you’re done!
Remarketing on Facebook is a breeze with these simple steps:
1. Log in to Facebook Ads Manager.
2. Click on Business Manager at the top left-hand portion of the screen, and select Audiences.
3. Click on Create Audiences and select Custom Audiences.
4. Select your target audience from the dropdown menu.
5. Get your pixel code and place it on your website. If you don’t know how to install the pixel on your website, follow the instructions here.
It’s hard to figure out why your website visitors did not convert. It’s discouraging to see a high percentage of bounce rate and abandoned carts.
While there is no exact science that can pinpoint the reasons why users didn’t push through with the sale, remarketing gives you another opportunity to win them back. An effecient campaign can boost your conversion rate by 28%.
There are different remarketing strategies to use, depending on campaign type, budget, and goal. Weighing in these factors to develop a plan that delivers results is very challenging even for pros.
The good news is, you don’t have to do everything by yourself. All you have to do is find the best digital marketing agency with a proven track record and exceptional feedback from previous clients.
SMRT Digital has been consistently delivering impressive results to our clients in the past few years. We cater to different companies of various industries in providing a tried-and-tested formula for remarketing campaigns. Reach out to us, and let’s talk about how we can turbocharge your sales using this technique.