Retargeting is a type of digital advertising that helps a brand connect with and engage an audience that has interacted with the brand in the past or has visited the brand’s website but did not make a purchase. The main aim of this type of advertising is to remind customers of your brand, which in the long run, helps improve conversion.
With many successful examples of retargeting ads spread across the digital landscape, it is a proven fact that these types of ads can help improve ROI.
Retargeting ads are not that different from ‘targeting ads’ but are sent to users who have already interacted with your brand in the past. They serve as reminders for people who are aware of your brand but are yet to make a purchase from you.
Retargeting ads use the viewing history of users to target users that have checked out products on your site but did not make a purchase and use this information to show ads of similar products or your brand on other sites. Using an ad builder platform can help make the entire process of retargeting easier for advertisers.
Retargeting ads, in most cases, provide further information to users about the products they were researching which, in turn, helps with increased conversions even when compared to simple display advertising.
Retargeting works best when combined with inbound and outbound marketing as well as demand creation. Content marketing, AdWords, and targeted display strategies are well-suited for increasing visitors but don't always help with conversion optimization. Retargeting, on the other hand, can assist with increased conversions but cannot bring new visitors to your site. Using one or more techniques to drive traffic and retargeting to get the most out of that traffic gives you the best chances of success.
At present, a retargeting ad works using cookies which are an important part of retargeting. When a prospective customer visits your site, an anonymous browser cookie is placed on their device. When the user leaves the site without purchasing anything, the cookie intimates your servers about the same, after which you can target ads to that customer until they come back to your site to complete their purchase.
Retargeting in advertising can significantly influence marketing campaigns as there are numerous benefits of retargeting ads that marketers can avail.
When customers come across retargeting ads frequently, they show more interest in a brand’s products or services. These ads prompt them to re-interact with your brand, which in turn leads to better engagement.
Retargeting ads basically work on user behavior across the digital space, and based on the retargeting ads they are shown, marketers can also trace the user’s online journey, gaining deeper insight into their buying behavior.
People tend to buy only from brands that they know and trust and won’t buy from a new brand till they know them better. That is why brand awareness is of prime importance and retargeting ads help with the same.
Re-engaging with a brand that a user has interacted with in the past shows more affinity towards making a purchase, which helps improve conversion rates as well.
Regularly seen retargeting ads make customers more likely to trust your brand and be interested in your products or services. After purchasing your product, if they love it, they will be back for more, which results in an improved customer lifetime value.
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