Retargeting

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Retargeting is a term from online marketing that describes a tracking method used to mark (track) visitors to a website (usually a web shop). Subsequently, they are approached again on other websites with targeted advertising.

Definition

Retargeting, also known as re-targeting or remarketing, refers to a type of online targeting in which advertisers tag users of an online service to show them ads for the web service they are visiting as they browse the Internet. With this, online retailers want to generate a conversion. They often rely on cookies to do this.

When cookies are used, a so-called pixel is built into the source code of the target page. This is a small line of code that sets a cookie on the user’s computer as soon as the client (browser) has loaded the corresponding page. Through this cookie, the website recognizes information such as product clicks or visits to other websites and forwards it to an ad server that coordinates the delivery of advertisements. If the user now visits another website that participates in the same advertising program as the ad server, he will be shown suitable advertising offers. This allows conversions that were not completed on the first visit to be made up later if, for example:

  • there is still an item in the shopping cart, but it was not purchased
  • a certain category has been viewed in the webshop
  • a certain service was searched for

In addition, the click-through rates ofa website, the identification value of a provider as well as its advertising pressure can also increase. However, time factors carry a certain risk because potential customers may have lost interest in a product or service after only a short period of time.

How do you recognize retargeting?

For the consumer, retargeting often appears very opaque, because the consumer does not know which companies create data profiles with the data collected via the cookies, nor in what form the data sets are instrumentalized. According to the current cookie guidelines, websites must now draw attention to the use of cookies and ask users to consent. Nevertheless, an opt-out from the user side is not possible in most cases.

How and why should you use retargeting?

Because only about four percent of all website visitors ultimately decide to make a purchase, retargeting is an important strategy for driving shoppers back to your online store to complete their purchase. Retargeting not only helps you reach the 96 percent who didn’t take action, but it’s an effective strategy for other reasons:

  • Retargeting is a smart way to convert potential buyers who have already shown interest in your offer. The effort required to do this is considerably less than for people who have never visited your website before. An intelligent retargeting solution helps you target these buyers at exactly the right time and with the right product to maximize sales and profits.
  • Retargeting reinforces the first impression and keeps your products in the minds of potential customers. Buyers have to see and, more importantly, perceive an advertisement several times before they actually buy something.

Because some retargeting providers allow buyer matching across desktops, mobile devices, and apps, this gives you the ability to target prospects with consistent messages no matter where they are. Other providers may even use offline data that, for example, detects when a shopper has bought the product in a store and then stop showing them ads.

Retargeting is cost-effective and offers a measurable ROI (return on investment). If you follow the recommended approach, retargeting can be an extremely lucrative and overall profitable strategy for you. If you use personalized ads at the right time, they provide ideal interaction. And with a CPC-based pricing model, you only pay when someone clicks on your ad.

What does retargeting cost?

How much a retargeting campaign really costs depends roughly on the price of each ad placement as well as the budget you have planned. The consideration you receive is related to the pricing model offered and your target goals.

Conclusion

With retargeting – for example via cookies – you can remind buyers of their original interests and guide them back to your online shop to complete a purchase. The strategy is cost-effective and can be implemented with little effort.[uncode_list][/uncode_list]

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