Retargeting can be a powerful digital marketing tactic, allowing you to track your past website visitors wherever they go across the internet.
While you may be using other effective forms of online marketing such as content marketing, paid search, or social media ads, retargeting is an important complementary strategy to these.
When all other strategies fail to make a customer out of your website visitors, it is retargeting that gives you a second, third, fourth chance to re-engage that prospective customer.
AdRoll said that in general, only 2% of shoppers convert on the first visit to an online store. The goal of retargeting is to bring back the other 98%.
If you’re involved with online advertising and still not convinced to implement retargeting, here are ten statistics that will make you reconsider.
Retargeting Statistics Worth Thinking About
25% of online viewers enjoy seeing retargeted ads. [Source: CMO]
Online viewers are open to being served retargeted ads. While the majority of them (60%) remain neutral about seeing retargeted ads, 25% enjoy them because they are reminded of products and services they were looking at previously.
Website visitors who are retargeted with display ads are more likely to convert by 70%. [Source: Software Advice]
Prospects or potential customers usually browse numerous websites as part of their research. They consume various content to help them make a decision. Retargeting gives them a little push towards your brand. When a prospect sees a retargeting ad, there’s a 70% chance that they’ll purchase your product over your competitor’s.
3 out of 5 online viewers notice and consider ads showing products they viewed from another page. [Source: eMarketer]
As customers are becoming savvier, they’ve found ways to block out these ads, whether through ad blockers or sheer effort. However, retargeting display ads are a different story, as they remind visitors of products and services they’ve shown an interest to in the past.
The click-through rate (CTR) of a retargeted ad is 10x higher than the CTR of a typical display ad. [Source: Wishpond]
The engagement advertisers can get from retargeting is significantly larger. While the average CTR for display ads is 0.07%, the average for retargeting ads is 0.7%. This means that retargeting campaigns perform 10 times better than regular display banners, and offers better opportunities to convert website visitors, compared to other digital advertising strategies.
Retargeted search ads have higher conversion rates than display ads, but they're also more expensive. [Source: Wordstream]
The higher overall conversion rates are due to the fact that search ads are much better at indicating buyer intent than display ads. This is because they're actually based on the keywords used in the search query. These remarketed ads convert so well because browsing history is a really good indicator for future commercial activities.
These higher conversion rates naturally make search ads more expensive than their display counterparts. In highly-competitive industries, search ad clicks can cost several dollars or more each. Display and social remarketing ads on the contrary, might cost anywhere from 2-100x less.
91% of marketers who have used retargeting have found it to perform the same as or better than search, email, or other display ads. [Source: IAB]
Out of 1000 marketers surveyed by the Interactive Advertising Bureau (IAB), 92% found retargeting to perform the same as or better than search, 91% for email, and 92% for other display advertising.
Marketers vouch for the effectiveness of retargeting ads, and numerous case experiences have shown the high probability of conversion.
Compared to other placement strategies, retargeting generated the highest lift in business name searches by 1,046%. [Source: PR Newswire]
The stat is part of the results of a comScore study analyzing 103 campaigns from 39 different advertisers covering 7 industries. Retargeting was the most effective ad placement strategy compared to audience targeting (514%), contextual targeting (130%), efficiency pricing (100%), premium pricing (300%), or Run-of-Network (RON) (126%).
This empirical evidence validates the effectiveness and efficiency of retargeting ads towards increasing conversion rates and overall profit. However, for marketers to continue benefiting from this powerful strategy, it must be implemented responsibly and consider the privacy and security of consumers.
68% of marketing agencies and 49% of brands have a dedicated budget for retargeting. [Source: Chango]
When almost seven in ten agencies and close to one in two brands are allocating budgets for a particular marketing strategy, you just know that it is effective. This is a sign of growth in spending for retargeting as well, considering that in 2013, only 20% marketers had a dedicated retargeting budget.
But, as mobile devices and digital technologies have already become a critical part of people’s day-to-day lives, marketers can no longer ignore the effectivity of retargeting. As such, more businesses and brands are turning to the strategy to increase sales and profit.
70% of marketers turn to search retargeting primarily to increase brand awareness. [Source: IAB]
According to a survey of 1000 marketing professionals, social engagement (62%) and driving sales (58%) are important goals, but increasing brand awareness at 70% is the number one retargeting objective for both B2B and B2C brands.
47% of consumers say that they would sacrifice privacy to get a better deal. [Source: Pew Research Center]
A study by Pew Research Center found that nearly half (47%) of their respondents, who were American consumers, say that the basic bargain offered by retail loyalty cards - tracking purchases in exchange for occasional discounts - is acceptable to them, while a third (32%) say it's unacceptable.
This is a clear indicator that the whole "creep factor" involved with being tracked online is highly over-exaggerated. As long as there's a clear benefit to the consumer, most won't have any issues with having their relevant online behavior tracked.
30% of consumers have a positive or very positive reaction to retargeted ads, while only 11% feel negatively about them. [Source: eMarketer]
Be at ease, marketers. More consumers feel positively than negatively towards retargeting ads. 30% are positive about retargeting ads, while only 11% feel negatively about them. The rest (59%) had a neutral reaction. Whatever their reaction may be, the chance of them converting into an actual customer is still high.
Furthermore, as consumers become used to this form of personalized marketing, they’ll understand that it will benefit them in the long run. It can help them while shopping around the internet, as it provides suggestions for products or services they may have overlooked in the process.
While retail remains at the top of the verticals that use retargeting at 27%, other industries are increasing the incorporation of this strategy. [Source: IAB]
Retargeting essentially began in retail, which explains why the majority of the verticals that use the tactic still comes from e-commerce websites and retail brands.
However, a study by the IAB has shown that retargeting is no longer just a tool for online shopping sites, as organizations in various industries like media (17%), tech (10%), healthcare (10%), finance (9%), education/government (8%), travel (5%), and agencies (4%) are now using this marketing strategy.
Go Forth and Retarget!
With these statistics on how effective retargeting can be, it’s clear that this marketing tactic is an excellent way to nurture customer interest, increase brand awareness, drive traffic back to your website, and ultimately, improve conversions.
If you're not part of the 49% that are actively dedicating part of their marketing budgets to retargeting, you could be missing out on a ton more conversions!