Last Updated: Jul 26, 2016
Retargeting is a way to remind prospects about your products after they leave your site. Here’s how and why it works for small businesses.
Statistics show that only about 2 percent of the people who check out your website convert on the first visit. The other 98 percent could return and become loyal customers for your small business if you set up a strong remarketing campaign.
Also known as retargeting, remarketing means reaching out to people who have previously visited your site and showing them displays ads for your brand while they browse other sites. (The remarketing ads only show on sites that allow and get paid for remarketing ads to be displayed.) The way it works is that you put a snippet of code on your site. That code inserts a cookie into visitors’ browsers. The cookie gathers information about which pages they view while they’re on your site, delivers that information to the remarketing platform you’re using, and they, in turn, deployrelevant ads based on the specifics of your campaign.
Benefits of Targeted Ads
Unlike traditional advertising or SEO, retargeting gives you a way to target very specific segments of your audience. Ads are displayed based on what pages or products people looked at while on your site, effectively creating a campaign based on individual shopping behaviors. This results in a click-through rate that’s as much as 10 times higher than that of regular display ads.
Placing ads on other sites that your customers frequently visit keeps your brand visible at all times. Consistent exposure to a brand image is what builds trust and loyalty, so this visibility is of vital importance to the success of your business. Targeted ads display across platforms to a much wider, more interested audience than you could ever hope to reach through other marketing methods.
Creating a Budget
Remarketing ads can be more cost effective than other paid advertising because the audience you’re trying to reach has already expressed interest in your products and services. Rather than trying to snag a few potential customers from among a broad pool of general Web users, you’re reminding previous visitors of something that they might still be thinking about buying.
Services that handle targeted ads set rates for them in one of three ways:
Generally, you set your target budget for the month and the service delivers a certain number of ads depending on that cap. Some services claim that you can make as much as $10 for every $1 spent on this type of advertising, but it’s better to start small and work your way up based on the actual returns you get from your campaign.
Begin with a “test budget” based on your average number of monthly visitors, the bounce rate for your site and any special circumstances that might influence incoming traffic, such as current promotions or the time of year. Decide how much you want to spend versus how much you could make by bringing back a percentage of lost traffic. Keep a careful eye on ad performance to determine whether you need to increase your budget or drop it down.
Building a Successful Campaign
Follow these best practices to make remarketing work for you:
Top Remarketing Tools for Small Businesses
When you’re ready to launch your new marketing campaign, team up with a reputable service. Choose a company staffed by skilled experts with the knowledge to build a campaign that meets the specific needs of your business. Look for a user-friendly platform with solid customer service, and research the success rate of the company to estimate how much they can increase your ROI. These four tools are commonly used by remarketers to reach a wider audience:
Retargeting can be an effective tool for bringing bounced traffic back to your site and increasing conversions. Work with a reputable company to design a comprehensive campaign that caters to specific segments of your target audience, and you’ll boost your ROI without blowing through your small business budget.
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