So you’re shopping online for new furniture, only to be interrupted by your child screaming from the living room. You run to the rescue to find they have spilled bright red fruit punch all over the couch. Ugh…you may need more furniture than what you thought….After cleaning the mess, fixing dinner and getting the kids to bed, you finally return to your online furniture shopping. You get back online and begin browsing through the 97 tabs you have open. Strangely, in the sidebar, you see a picture of the couch you looked at earlier on an entirely different website? Oh yeah, you remember. You liked that one! You click the image, follow the link and purchase the couch (that fruit punch didn’t really come out anyways…)
You’ve become a victim of retargeting.
Retargeting, also known as remarketing, is a way of tracking your website visitors and displaying your ads to those who have previously been on your website. Retargeting is the fastest growing sector of the display advertising industry, with over $2 Billion invested so far.
How Does It Work?
1. Potential customer visits your website.
2. Potential customer, who previously visited your website, is shown your ad as they browse other sites.
3. Potential customer is reminded of your brand/service/products and revisits your site (hopefully) converting to a paying customer.
Retargeting shows your ads to users who have previously engaged with your brand or interacted with your site, but never converted.
Why Should You Be Retargeting?
Well, to put it simply, increased sales. Retargeted customers are 70% more likely to complete a purchase. Retargeted ads also receive 2X better CTR performance. So, basically, retargeted ads and the process of retargeting, increases ad performance and ROI.