You’ve heard the saying “you never get a second chance to make a first impression.” Well, for marketers this isn’t necessarily true. In fact, you can even get a third and a fourth by utilizing retargeting. This marketing method allows businesses to refocus their approaches and nail the interactions that follow the initial visit. But more often than not, it’s a way for brands to bug the hell out of consumers with relentless ads out of context and devoid of consumer intent.
Retargeting exists as a specialized form of targeted advertising. Marketers can pinpoint consumers who have visited their websites or entered their databases and then leverage pre-existing information to create a better catered marketing strategy.
The bottom line: Retargeting gives your team multiple shots at landing that coveted conversion. By intelligently targeting visitors who have abandoned the sales funnel more directly, you are capable of engaging their needs with a more effective approach.
“Retargeting gives your team multiple shots at landing that coveted conversion.”
Retargeting increases the effectiveness of marketing materials for conversions. In fact, according to TrueShip, website visitors who are retargeted with display ads are 70 percent more likely to convert on your website. From improving brand awareness to driving customers down the funnel, this marketing method is nothing short of magic – and marketers are taking notice.
According to a survey conducted by AdRoll, over 70 percent of marketers are spending anywhere between 10-50 percent of their digital marketing spend on retargeting content.
Yet while many marketers understand the potential value, they are falling short in the actual application of their efforts. Despite a total of $6 billion spent on retargeting in the U.S. last year, click-through rates remain dismal at just .06 percent. Sure, this is better than the average CTR for all digital ads, but that feels like a pyrrhic victory. What’s getting in the way of better results? Well, there are a few key pain points that help explain this phenomenon.
Understanding and Attributing across Channels: A recent study revealed that 43 percent of marketers cite attribution and understanding of performance across different channels as a top challenge when it comes to retargeting. This can largely be credited to the fact that without users clicking on your ads it is impossible to measure the real significance of your efforts.
Ineffective Data Capture: Many businesses struggle to effectively capture information across channels which leads to an inadequate view of customer behavior. Put simply, it is hard to retarget when there is not enough data to use in the first place.
Immature Use of Data: Even when they have the data available, many marketers aren’t using that information in smart and effective ways. Marketers are responsible for providing ad tech partners with detailed and insightful information about individuals who make up their most critical target segments. However, more often than not, ad tech partners are left with lackluster insights into the types of customers they should be targeting – or fail themselves to match up audiences with messages.
Okay, enough of the problems – we want some answers! While there are a few roadblocks standing between marketers and their wildest retargeting dreams, the good news is that there are some pretty simple practices any business can follow to produce a better retargeting campaign.
1. Collect Data for Insights: Develop a cross-functional effort to better define your audience and its preferred messaging/content by gathering better understanding of exactly what customers should be targeted.
2. Gather Behavioral Data: Want a richer view of your individual customer? Start collecting both behavioral data and larger-scale demographic data for optimal understanding of your audience.
3. Focus on Relevance: Hone in on what is most contextually applicable for an individual user – information that is bound to change depending on his or her journey. Marketers have the potential to be most effective when they reach their audiences in a cross-channel strategy. According to a recent survey of marketers by eConsultancy, 73 percent of participants reported that cross-channel interactions were critical to increasing conversion rates.
4. Treat Each Segment Uniquely: Take a close look at your segments. Focus on the ones that are most likely to have a high lifetime value or promising likelihood of conversion, then look at infrequent visitors or cart abandoners – craft messaging specific to all of the mentioned parties. Specify based on motives or interests to be most effective.
5. Measure Better and More Often: Modern measurements need to happen often and on deeper levels in order to match the consumer’s pace. Measurements must include data relevant to specific groups of consumers and their lifetime value as well as typical KPIs in order to secure a more complete and effective approach for long-term success.
Implementing these best practices in your next retargeting campaign has the potential to more accurately retarget individuals across their life cycles, helping you better understand and identify important segments and better engage your consumer base. It all culminates in a potential 400 percent increase in ad responses with higher conversions and improved efficiency – sounds like a stellar deal to us.
“Customer data platforms are a marketer’s best friend when it comes to retargeting.”
So, what’s the path of least resistance to this kind of retargeting success? Customer data platforms are a marketer’s best friend when it comes to perfecting this marketing magic. They can help eliminate data collection, usage and overall application. By effectively capturing first-party data and building out more rich segmented profiles, marketers are better equipped to decipher individual needs and intent.
Want to learn more about how our customer data platform can help you do just that? Chat with one of our BlueConic reps today.