Did you go on a site and see that company/product following you wherever you went? You jumped from news sites, to Facebook, to your favorite celebrity gossip site, to YouTube and everywhere you looked, did you find that company’s banner?
Sounds pretty awesome, right? Maybe you’re thinking: This Company must have a huge budget to advertise and show up on all those great sites! If you do not know what remarketing is, you’ll definitely find it impressive.
But what if we pull the curtain and reveal who the Wizard of Oz is? Knowing what remarketing is and how it works can make it less impressive than you might think, but that does not change its effectiveness. Even if you know the magic behind remarketing, it’s a highly effective advertising tactic for marketers. And if you are one, you should start using immediately!
You may be familiar with the term ‘ remarketing ‘ and you may have read numerous articles on the topic. If so, this is not an article for you. However, if you need a crash course, you are in the right place! This guide is designed for beginner level audience and to be an efficient guide on the subject.
What is remarketing?
Remarketing, also known as segmentation redefinition, is targeted banner ads that appear after visiting a particular company’s website.
So after visiting an X site – and moving to a Y site, you can see a banner ad from site X on site Y. How this works is a little more complicated. Let’s delve into exactly how remarketing works and how your company can get started using it.
How does remarketing work?
Every time you receive a new web visitor, your site will drop an “anonymous browser cookie”. Now, when your visitors “access” another site, your remarketing ad service provider will know when to deliver an ad from your website.
What is different from common banner ads?
The main difference between remarketing and traditional banners is customization based on the previous web history. Typical banner ads display ads based on your profile (age, gender, interests). You’re paired with ads that fit your specific user profile – what marketers call “interest graphs.”
So if I visit a news site X, I might see broadcast ads for sneakers. I’m not really interested in sneakers at the moment, but I fit into the ad’s profile. Remarketing only shows ads after I’ve visited a particular site, thereby showing some kind of interest in the business.
Why should you use remarketing?
Like any other marketing or advertising investment, the main reason is to make a sale – or many sales. Remarketing is an effective form of advertising – will a small proportion of users find these ads scary, but others? They will respond positively (and buy) to them.
Why does remarketing work?
Remarketing is effective because it offers several benefits:
- Increases brand awareness with constant exposure to branded ads.
- They increase and much traffic to your site (from a visitor interested in what you offer). Sales are not normally made during the first visit.
- Of the visitors who do not make a purchase on the initial visit, 67 percent of visitors who visit the store again, end up making a purchase.
- Improves ROI based on user touch points.
Persistence pays off. In an age when our attention is diverted almost every second to something new, it is important to remain at the forefront of an individual’s thinking. Remarketing is an effective tactic to do this properly!
What are the different types of remarketing?
Local Remarketing – This is probably one of the most popular forms of remarketing because it is simple. Site remarketing displays an ad after an individual leaves your site.
Search Remarketing – Search remarketing is aimed at users who are asking specific questions about certain keywords. These individuals are exhibiting an interest in your industry and are probably looking for more information or a solution.
Social Media Remarketing – Unlike remarketing you can do this through a Google Ad Network, social media remarketing is focused on displaying remarketing ads on your social networks. Visit, for example, Walmart or even Free Market and go to Facebook. You will instantly see ads from them.
Email Remarketing – If you use an email client such as Gmail, you’ll see contextual ads, usually based on your email content. But you can also reschedule the ads in an individual’s email client.
What are some remarketing targets?
Above we discussed different types of remarketing. But within these types, there are different targeting options that an advertiser can use to increase their personalization and conversion rates.
General Visitor – Anyone visiting your site.
Specific Product Visitor – These visitors have taken a deeper look at your site and visited a specific product.
A visitor who abandoned shopping cart – We do this a lot, for some reason or another. We found a product that we liked, we put it in our shopping cart, but finally, we did not buy it. This is a very strong indicator of intent and targeting that this audience can lead to finalizing the sale on a later visit.
Previous Customers – If someone pulls the trigger and makes a purchase on your site, refer this customer again for other purchases. It is much easier to get someone to buy from you again than to get a new customer. The first one is harder than the second!
How do you measure your success in campaigns?
Like any digital advertising spends, it is important to measure your results. Remarketing has several different key metrics that are crucial so that every digital entrepreneur can keep an eye out.
CTR: The number of times an ad was clicked divided by the number of impressions served.
CPC: This is a fairly normal metric. “Cost per click” is calculated by taking the total budget you spend and dividing it by the total number of clicks.
CPM: “Actual cost per thousand impressions” is determined based on total earnings and divided by the total number of impressions served. That number is multiplied by a thousand.
CPA: The “cost-per-acquisition” cost is based on the spent campaign divided by impressions served, multiplied by the CTR and then the conversion rate. This tells you what you may have paid for ads by cost-per-action.
ROI: This is the most important metric you can finally calculate. The formula for your return on investment (ROI) is your investment gain, minus your investment cost, divided by the cost of the investment. ROI tells us how much money we’re generating from our advertising spend.
Where can I set up a campaign?
There are many different companies created to help you easily create and manage a remarketing campaign.
Here are some options to get you started in the right direction.
Google – Google has a huge network of display ads as well as products like Gmail. By signing in to your Google Adwords account, you can easily create your first remarketing campaign.
AdRoll – AdRoll is a popular option for digital entrepreneuseers because they have multiple advertising partners. With AdRoll, you can set up ads using Facebook Exchange, Google, Yahoo, and Microsoft online ad platforms. This allows you to reach virtually every site on the Internet.
Remarketing is a really effective strategy that most web marketers must integrate into their marketing mix. Remarketing will help you with potential customers at various points in the buying cycle.
If you are a new visitor or an existing customer, remarketing can add and bring your business a little more attention and it may be necessary to make steady and growing sales.
What if my store goes offline?
Online marketers are obsessed with online marketing. What is important to remember, however, is that: Many transactions are still going on offline. Remarketing, as a tactic, can be applied to more than just online stores. You can think creatively about ways to move users through the funnel of your website to your offline store.
Let the power of your phone and tablet help guide your reviews. One way to track performance data is to set up an Ipad in an area of a kiosk in the event that your business is participating by doing a customer survey.
Remarketing is a great way to repeatedly present your brand in front of “interested eyeballs”. It will help drive sales by driving people to your site.
You can analyze various metrics, such as CPC or CPM, to ensure that you’re taking the best approach to remarketing. Because not every type of remarketing will work for your brand, you need to test different approaches to finding what works and continually looking for ways to improve your campaigns.
Now that you’ve been introduced to the concept of remarketing, what questions do you have? Let me know in the comments! Haaa and do not forget to share on social networks!