What Is Remarketing and How to Leverage It for Your Business?
While you can invest hundreds or even thousands of dollars in paid and organic marketing channels to bring users to your website, you can convert only about 2% of those users on average, and the other 98% leave your site to never come back again.
But with remarketing, you can have a second chance to reconnect with your audience, remind them of your products, and encourage them to buy whatever it is you’re selling.
So, if you don’t want to miss out on converting your existing users into paying customers, you need to invest in remarketing.
What is Remarketing?
According to Google, Remarketing (or retargeting) is a way to connect with people who previously interacted with your website or mobile app.
It allows you to strategically position your ads in front of these audiences as they browse Google or its partner websites, thus helping you increase your brand awareness or remind those audiences to make a purchase.
The above definition can be a little confusing, so let’s understand this in a simpler way…
Imagine this; you searched for say, a time management tool on Google. You then visited a few websites of time management tools, but you left the sites without signing up for any tool.
After that, there were ads of those tools on every site you visit — Facebook, Instagram, Quora, and more.
I’m sure this has happened with you, and no, it’s not magic. It’s Remarketing.
When you visit a website but don’t make a purchase, they know what you are looking for, so to grab your attention, sites start throwing multiple ads everywhere you go so that ultimately you buy their tools (or other products).
I’ll give you an example.
Yesterday, I was looking for guitar lessons, so I searched it on Google and visited the tone base website. As I didn’t sign up on the site, these ads started following me on Facebook and other sites I visited after that.
So, remarketing enables businesses to reach those potential customers that know about their product and only need a slight nudge to make the purchase. This makes remarketing the most powerful form of PPC advertising on the internet.
With remarketing, you can easily have conversion rates of up to 3x higher compared to your regular marketing channels.
Difference between Remarketing and Retargeting
Some of you are maybe familiar with both retargeting or remarketing, but here I’m only referring to remarketing as these terms are often used interchangeably, and I don’t intend to over complicate things.
Though, the difference between these two terms is…
- Remarketing involves reaching out to site visitors via email,
- While retargeting happens when you use tracking pixels and follow your site visitors to advertise them with online display ads.
Marketers often use remarketing only as Google groups. The email remarketing and retargeted display ads under a single term, “remarketing.”
Why Remarketing is Important and Useful for your business?
Remarketing gives tremendous opportunities for businesses to grow since the audience you’re targeting already have some interest in your website — it’s easier to convert them compared to going after a fresh audience.
It is a second chance to advertise and nurture your audience to convince them to buy from you.
According to InvespCRO, the average CTR for retargeted ads is 0.7% compared to 0.07% for display ads. That means you will have 10x better conversions with remarketing compared to putting all your money in-display ads only.
With remarketing, you can leverage ads to sell over 50% more of your products as you get more in front of your customers.
In recent years, remarketing has become really sophisticated, and businesses can now filter and configure the audiences according to various use cases.
Other than remarketing to those who abandoned the cart, you can also remarket to your past purchasers, blog readers, and your newsletter subscribers.
Benefits of remarketing:
- Significantly higher ROI.
- Very effective method for creating brand awareness.
- You have a chance to convert even dormant users into your customers.
- Remarketing conversion rates increase over time.
- You can target your competitor’s customers too.
Even with all these benefits, over 45% of marketers believe that remarketing is the most underused online marketing tactic. So there’s a lot of opportunities available for businesses to set up remarketing campaigns and increase their conversion rates.
Tip: Remarketing is not only for eCommerce and online stores, but it also works great for multiple other industries and verticals too.
Types of Remarketing Campaigns
Remarketing campaigns are not limited to any particular ad type and offer the unique opportunity to reach out to visitors who have left the website without making a purchase.
The different types of remarketing campaigns are…
- Video remarketing (Google Ads): This shows ads to people who have engaged with your videos on YouTube.
- Display remarketing (Google Ads): With display remarketing, you can show ads on all the websites within the Google display ad network.
- Dynamic remarketing (Google Ads): Explicitly used for products or services, dynamic remarketing helps build leads, sales, and can scale to cover the entire inventory.
- Customer list remarketing (Google Ads): With Customer Match, you can upload lists of your customers, and when those users are signed into Google, you can show them ads across different ad channels.
- Social Media remarketing: Major social media platforms — Facebook, LinkedIn, Pinterest, Twitter, all offer remarketing ads to target people who have visited your website while browsing on these social media platforms and their partner sites.
- Email remarketing: Allows you to reach those users who have left your website without a purchase with targeted follow-up emails.
Regardless of the type of remarketing you use, the important thing is to select the proper platform.
How to start with Remarketing?
Remarketing is an excellent technique to get more conversions without reaching a new audience.
Now to set up remarketing campaigns, you can begin with Google Ads, Facebook Ads, and Twitter Ads.
Before that, understand how remarketing works…
- Users visit your website (through paid or organic channels)
- Cookies installed on your website track those users who don’t make a purchase and leave your site
- Remarketing ads then target those users on other websites
- Users click on your ads as they’re already familiar with your product/service
- Finally, users make the purchase (or perform any other action desired on your site)
Now let’s see how you can set up remarketing with Google, Facebook, Twitter, and Amazon Ads.
Remarketing with Google Ads
Google has made it a lot simple now to set up remarketing campaigns in Google Ads or AdWords (the older version).
You can then deliver the ads based on your audience data such as in mobile apps, specific devices, language, or particular geographical areas.
Remarketing with Facebook Ads
On Facebook, retargeted ads are 76% more likely to get clicks compared to regular display ads.
To get started with remarketing on Facebook, you first have to create and install a Facebook pixel on your website. Then set up your custom audience based on your website visitors. After that, give 12 to 24 hours for Facebook to populate the audience list with the new data.
Now segment your audience list based on the geographic location, language, age, gender, interests, and create your ad. Use an attractive graphic with compelling ad copy and try different combinations to find out what works best with your audience.
With Facebook Ads, you can set up remarketing campaigns for Facebook, Messenger, and Instagram to reach its user base of over 1 billion.
Remarketing with Twitter Ads
Twitter lets you create tailored audiences to target users who have visited your website, downloaded your app, subscribed to your newsletter, or interacted with your business in other ways.
To set up the remarketing campaigns on Twitter, you first have to install the online conversion tracking which creates a list of Twitter users who visit any of your website pages, and then you can upload a list of your contacts to run the ads.
Advanced Twitter conversion tracking shows additional information, such as how much Twitter customers are spending on your website and what they’re buying.
Remarketing with Amazon Ads
Amazon is the perfect example of remarketing.
As soon as you search for something on Amazon and leave without buying any product, Amazon sends emails with the product link to nudge the user to quickly complete the checkout process.
With Amazon retargeted ads, you can target those users who have visited your listings or purchased from you in the past.
Amazon also offers sponsored product ads that have a conversion rate of almost 10%. To set up remarketing campaigns in Amazon, you have to create sponsored product ads and enable the Ad Retargeting.
As of now, Amazon offers a basic level of retargeting only, so the process is simple, but you won’t be able to customize your campaigns as you can do in Google ads or Facebook ads.
Tips to make the best ROI on remarketing campaigns
According to a study by Criteo, over 40% of users are likely to make a purchase when retargeted. So follow these tips to get the best out of remarketing efforts…
- Don’t waste your marketing dollars on those who have already purchased from you.
- Set a specific limit to stop the ads if you’re not getting any click-through after 5 days or 10 or 15 days.
- Don’t use the same page which users visited but didn’t make any purchase.
- Target specific users and personalize your remarketing ads as much as possible.
- Schedule your ads to align with your targeted audience timezones.
- Constantly test different ad platforms, formats, and sizes to make sure you’re reaching the highest number of customers.
- Setup ads with different messages and rotate them so that you have higher chances of converting a user.
- If direct products ads aren’t working, try a different approach such as newsletter signups or offer free content to get the users into your product ecosystem.
- Create a persuasive ad copy to make sure your audience is interested in your ads.
- Limit the number of ads to each potential customer to about 10 to 20 ads per month.
- Use segmentation to create a more personalized experience based on the audience’s interests, buying habits, and more…
With this, don’t focus entirely on remarketing as this only works when you get visitors to your website. So spend enough on your primary marketing channels to continuously reach a new audience for remarketing campaigns.
Tip: You can also use remarketing data to exclude audience targeting to reach new people only.
How to Measure Success in Remarketing
To track your ad performance and make further optimization — you have to measure your ads for which you can use Google Analytics.
Remarketing with Google Analytics lets you follow people who have already visited your website and deliver ads specifically targeted to the interests they expressed during those previous visits, and turn those unconverted visitors into your customers.
All you have to do is add the relevant tracking code in your Analytics account, and the data will appear in a few days. If you find some ads are performing particularly well, you can invest more in those and optimize other ads to improve the conversions.
One other method to find out if remarketing is working for you or not is to use A/B testing. For this, you can set up two ad variations — one with the retargeting pixel, and the other with no retargeting, and compare the results.
A few key metrics essential for measuring the remarketing success are…
- Lead Conversions (CPL) are the number of leads that can be directly attributed to your retargeted ads. The higher is the CPL, the better is your conversions.
- View Through Conversions occurs when a user views your retargeted ad on the web, doesn’t click on that, but return to your site and converts. You can put the tracking pixel on your post-click landing page to measure this metric.
- Site Visits are the number of visitors that arrive at your site from your remarketing campaign.
- Marketing Qualified Leads (MQL) are the leads qualified by the marketing team as likely to become customers compared to other generic leads. The MQL values are measured from lead scoring, audience behaviours, and it is considered as an accurate representation of value generated from remarketing campaigns spend.
All of these are important metrics, and you should use a combination of these to determine what is working for you.
And to reiterate, if you’re not getting the desired results out of your remarketing campaigns, immediately stop and work on your ad strategy. Yes, remarketing works, but only if you are deploying the right ads at the right time in front of your potential customers.
Remarketing is a very powerful approach and works best when used with broader digital marketing strategies. You can use display ads to regularly reach to new users and then remarketing to convert those users into your paying customers.
Now that you know the basics of remarketing (and retargeting), it’s time for you to set up your first remarketing campaign — build your brand awareness, generate more leads, and revenue.