What is Retargeting And How It Helps In Increasing Conversion?


It must be tiring for you to see people leaving your website without taking any form of desired action such as buying your stuff, or simply signing up for your website. The fact of the matter is, you’re losing about 98 out of every 100 people who visit your website. This calls for a targeted approach to bring those potential buyers back to your site and get them to take some form of desired action. That’s where retargeting enters the scene.

What is Retargeting?

Retargeting, as described by AdRoll, converts window-shoppers into buyers. It helps in tracking those 98 out of every 100 potential buyers who visited but left your site without a check out. This is done through retargeting advertisements that keep your business on top of your visitor’s mind, whether they are checking email, shopping online, interacting on social websites, or even simply surfing the web.

The main three options for retargeting are: Google AdWords retargeting, social media retargeting, and third party retargeting by AdRoll, Chango, or reTargeter. They are basically different channels that provide for different ways and approach to retargeting.

Don’t get confused by the term retargeting or remarketing, as both are the same. It’s just that remarketing is more specific to the Google AdWords display network and is a form of retargeting itself.

Some Stats on Retargeting to Understand Its Value

These statistics compiled in the CMO report by Adobe will better help you understand the value and importance of retargeting in increasing conversion:

  • 20% (one in every five) of the marketers now have a dedicated budget for retargeting advertisements.
  • Retargeting has shown its value by boosting ad responses to 400% in many cases.
  • Retargeting with display ads are more likely to help convert 70% of your website visitors who abandon your website to turn into buyers.

  • 46% of search engine marketing professionals believe retargeting is the most underused online marketing technology.

These empirical facts must be enough for you to understand why actually digital marketers need to work on retargeting for ensuring better conversion rates.

How Actually Retargeting Works?

Retargeting works by giving a gentle reminder, showing to the visitors the retailers they looked for earlier. Suppose, Sheila wants to buy a pair of shoes. She visits abcshoes.com and looked for a pair of shoes from your brand, the ABC brand. But she didn’t check out as she got to remember that she had to go to her child’s school for picking them up. Though Sheila forgot that website, but the website abcshoes.com ensured that it doesn’t forget Sheila by sharing a small piece of code, called cookies, with Sheila’s web browser, targeting that Sheila is now an ‘audience’.

Later on, when this ‘audience’ would visit any other website in the display network you are running your retargeting ads on, she will be shown your brand’s ad there. This will ensure that this audience does not forget about your brand when again searching for her pair of shoes on the web.

The retargeting funnel goes like this:

➦ Potential customers visit your site
➦ Leave without checking out
➦ Later they surf the web
➦ Your retargeting ad captures their interest
➦ It brings them back on your site
➦ They make purchase and become your buyers

The formula is simple. You just have to track the right people, with the right ads, and on right places. And that’s it! Your retargeting efforts will surely start to yield the desired results.

How It Helps In Increasing Conversion?

The biggest value of retargeting is its ability to target the customers individually. This makes it easier for the marketers to focus their advertisement spend on people who are already familiar with your brand and have recently demonstrated interest. Let’s see how it actually increases conversion:

  • It Targets Your Lost Visitors: Researches say that about 70% of online shoppers abandon their shopping carts and only 8% of them return to complete the purchase. With retargeting, you can track and bring back 26% of those. This can be more effective if you offer them a discount or a free shipping to entice the visitors to come back and make purchase.

  • Cross-Selling to the Existing Customer: You can also target your existing customer who has already bought some product from your website for cross-selling the related products. For example, if your customer has already bought a pair of a footballer’s shoes, then you can retarget them to buy a footballer’s jersey or the football itself. Take good care in offering the cross-selling products. They should be related to the prime product and also complementary to it.

  • Reaching Out to the Trial Members: If you offer some kind of free trial offer for your product on your website, you can remind your customers through retargeting the ad campaign about the date of expiration. This will prompt the customers to buy the full time membership just when it starts getting close to the end of the trial.

Strategies that involve content marketing, AdWords, and targeted display ads certainly drive traffic towards your website, but they won’t necessarily help with conversion optimization. For that, you will need retargeting. When done right, retargeting can result in better conversion rates, increased brand recognition, and improved advertising ROI.

Sangeeta has over 8 years experience in IT and 5 years experience as a digital marketer. She has hands-on experience in most digital channels including SEO, Social, PPC and Email marketing. Her job profile as an internet marketer required her to handle and train teams for deliverables. She has trained and pushed team members to learn digital marketing concepts which are novel yet beneficiary for businesses.

One thought on “What is Retargeting And How It Helps In Increasing Conversion?

  1. Hi Sangeeta,

    Great Post On Retargeting!! A very vital information is shared by you, i always wandered how the ads of shoes which I searched for in the ecommerce site is shown in the educational site hours after I searched for my shoes. Now I understood the proper working of remarketing. But I have one question, if I disable the cookies in my web browser whiile searching the ecommerce site, then how it will show me ads later when i’ll be visiting any other site?

    Please clear my doubt?

    Thanks In Advance!!

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