HOW REMARKETING WORKS AND WHY IT’S SO SUCCESSFUL
You find remarketing ads terribly annoying? I’m going to explain why they work so well nonetheless and why you should integrate them in your advertising concept.
It’s happened to me quite often: I look at a product in an online shop and even put it in the shopping cart, but then end up not buying it after all. There are various reasons for this. Sometimes, just before the end of the ordering process, I wonder whether I really need the product. Then there are times when I decide to compare the offer with other shops. Often I don’t have my credit card information at hand or I notice that I have to register to make a purchase, but don’t feel like doing so right then. Do you know that feeling?
From the shop owner’s point of view, that’s upsetting, of course: He knows I’m interested in a certain product, but not why I’m pulling out of the purchase at the last moment. If only he could somehow remind me of my interest in the product, then there’d be a good chance that I’d buy from him after all…
And this is where remarketing comes in – a practice that’s also referred to as retargeting. We’ve all experienced examples of this on various occasions: the bicycle that I’ve been looking at on the Internet for a while, the one that I already bought from my local bicycle dealer last week, but that is still being offered to me on various websites. Yes, THAT is remarketing: The attempt to convince me to finally make a purchase. Admittedly, in the case of the bicycle, it’s kind of a pity because the online dealer won’t earn any money from me. But at least he has the opportunity to remind me of my contact with his shop.
This is why remarketing, or rather retargeting, is so successful
The crux of the matter is: People generally prefer things they already know and value. We’re all more likely to rely on something we’ve already seen or experienced than to try out something completely new. If someone has visited your website and shown an interest in a particular service or product (for example, by staying on the page for a long time or by downloading information), then it makes sense to remind this visitor of your offer: After all, this person already knows your website, your company logo and so on. It will all look familiar, creating an atmosphere of trust.
How does remarketing work? And is it really so successful?
There are various providers that offer their advertising space and the technology required to implement remarketing. Two of the best-known providers are Google and Facebook. Their advertising networks are seen by a vast number of people. So it’s generally not a bad idea to gather initial experience with remarketing/retargeting on those networks.
It doesn’t take long to explain the basic workings of remarketing: With the help of a piece of code on your website, the advertising network registers which of its visitors have been to your website before. Those are the visitors to whom the advertising network may – in principle – display your ads. However, you have the option to define rules and have your ads displayed only to certain users. I’ll come back to that later. The advertising network regularly provides you with information on how many visitors have seen your ads and which of them have returned to your website.
Remarketing is successful. Several studies and cases clearly show that the conversion rate is rising, the willingness to buy is increasing and that ads from remarketing campaigns (contrary to the popular opinion that they are somehow “creepy”) are ignored less frequently than the usual banner ads. The longer you carry on with remarketing campaigns, the higher your conversion rates. Here are some facts about remarketing in general and here you can find a few case studies. Another important aspect is that remarketing ads cost less than standard ads because you already know the users who are interested in your product or service and don’t have to go looking for them first.
How do I plan a remarketing campaign?
Planning a campaign like that takes a certain amount of effort. First of all, you have to decide to whom you want to display your ads:All visitors to your website
- Visitors who have already placed a product in your website’s shopping cart
- Visitors who are interested in a particular product or product range
- Visitors who have looked at a particular page
As you can see, these tools are very easy to configure, allowing you to make either very broad or targeted use of them. In principle, you can display adds that are relevant for each identified target group.
Once the target group has been defined, you can specify the content, time period and pages on which you want your ads placed (or not). The rest happens by itself: All you have to do is wait for the results and maybe adjust a parameter here or there.
Isn’t remarketing terribly annoying? Doesn’t it harm my brand?
Early remarketing ads were indeed quite annoying. True to the motto “the more the better”, the adversing networks went all out and just about bombarded their customers. But that has changed in the meantime. You can specify the maximum number of ads to be displayed to a user per day as well as the number of placements after which no more ad should be displayed at all. That means you have full control over the type, number and duration of placements. And you can adjust these values whenever you want.
Do you still think remarketing is stupid now? Or does it sound like an exciting topic for you? If you’re interested, go and talk to our TMC digital unit, and together we’ll see whether a campaign like this could help you better reach your future goals.