Maximize your ROI with retargeting

When advertising online, there is a strategy that can significantly increase your return on investment ( ROI ), but that many people forget about or spend too little time on, namely retargeting . It involves targeting ads to people who have already interacted with your brand – but haven’t made a purchase or completed the action you want. But how does it work, and why is it so powerful?

What is retargeting?

Retargeting means showing ads to users who have previously visited your website, app or interacted with your brand in some way. To do this, you need to install a so-called “pixel” ( Read more about pixel here ) on your website. When the user visits your page, a cookie is stored in their browser, which makes it possible to show ads to them on other websites or social media platforms later. This way, you can get to know your audience and target your marketing more effectively. Few people make purchases on the first exposure, but often need to come into contact with the product or company more than once to gain enough trust before making a purchase.

Why is it effective?

It’s simple, people aren’t always ready to buy right away, especially if you’re selling more exclusive products. Maybe they were just curious, or they needed more time to make a decision. Retargeting gives your brand a second chance to grab their attention and remind them of your product or service, often with customized content based on what they’ve previously viewed.

Research has shown that retargeting significantly increases conversion rates. For example, according to a study by Criteo , people are 70% more likely to purchase a product after seeing it in a retargeting ad. This is because consumers have already shown interest, making them more receptive to a reminder.

How to do it right

• Segment your audience : Not all visitors are the same. If someone has added items to their cart but hasn’t completed the purchase, their intent is much higher than someone who just visited your homepage. Use segmentation to create customized ads for different user groups. Make sure to always keep track of what your audience has done on your website so that your ads are targeted to the right people, otherwise you’ll be throwing money down the drain, completely unnecessarily!
• Create engaging ads : To capture a user who has already seen your product, you need something more than just a regular ad that gets lost in the crowd. Use reminders about the benefits of the product, show reviews, or offer a really good deal (note: having a deal doesn't mean you should have a discount. Don't sell yourself out!) to drive conversion. The customer should recognize your product or company when they see the retargeting ad, but it shouldn't be the same. New information that convinces is important!
• Optimize frequency: A balance is crucial. Showing ads too often can lead to irritation, which can have the opposite effect. Adjust the frequency (i.e. how many times the same person sees your ad) so that the ads don't become overwhelming.
  
  

In conclusion

Retargeting is a powerful and cost-effective method that allows you to reach people when they are most likely to buy. By using the right segmentation, creating relevant ads, and adjusting your strategy according to user interactions, you can increase both conversions and customer lifetime value (read more about LTV here ). It is a strategy that every business, regardless of size, can benefit from to improve their results in the digital world. Good luck!