Why businesses should be using retargeting ads this holiday season

Why businesses should be using retargeting ads this holiday season

December 5 2016 - Advertising, Lead Generation, Marketing, Retargeting, Website

Black Friday and Cyber Monday are behind us, but it’s likely that some shoppers didn’t cross everything off their lists.

Maybe it was the turkey and tryptophan that held them back.

Or perhaps they wanted to avoid the rowdy crowds.

On the Monday after Thanksgiving it’s even possible that many consumers told themselves they would conduct all their shopping that week, before glancing at the calendar and realizing it was still November. They had a solid month to plan, they thought. Reassured, they went on with their daily routines without making any purchases.

Then they began to notice something they found fishy – the items they’ve searched for across different websites began to appear on their Facebook feeds and other websites they frequent.

They run to Amazon.com thinking they can get away from it, but they’re wrong. The ads appear even more prominently than before. They begin to wonder if they’ve been hacked. They even suspect their loved ones are on to them.

If you’re seeing recurring ads, don’t worry. There’s no need to launch an investigation or think your family is behind them. These reminders are not a malicious breach of your online security, but instead, they are the work of some clever online advertising called retargeting ads.

There’s a reason why companies engage in these successful tactics. Businesses understand that the shopping process is rarely linear. How often does a consumer go to a website, find what they want, and hit “Buy” immediately? It’s rare. In fact, some reports state that only 2 percent of shoppers will buy something from a website during their first visit.

Businesses understand that consumers are doing their research and checking for better deals at a competitor’s website. With so many options online, including other ads, companies began to realize that consumers don’t always remember the first sites they visited. This fact of e-commerce is even more difficult for companies to stomach after they have paid advertising dollars for their initial ads.

So they turn to retargeting ads to re-engage interest and give consumers a friendly reminder of what to buy. Call it a little nudge.

How They Work

As a consumer visits a website, the browser is able to recall his or her behavior through the use of cookies. Companies can use this information to target them elsewhere on the internet via a code referred to as a “pixel.” In a sense, the ad follows them wherever they go for a period of time specified by the ad buyer.

Research shows it works. Retargeting can increase ad response by as much as 400 percent and those who visit websites and see retargeting display ads have a 70 percent higher conversion rate, according to cmo.com.

Along with reminding consumers of products they’ve showed interest in before, these ads also reinforce brands and help consumers recall them. They create better engagement and, ultimately, increase a company’s conversion rate. And if a competitor isn’t using this method, there’s another leg up for those that do.

For many businesses, there is no more important time than the holidays to convert window-shoppers into online buyers, but remember, retargeting advertising is most effective if you follow some standard practices. Check with us to see how we can get retargeting ads installed for you. There are a lot technical details that go into running a successful retargeting campaign and Ellington Marketing Solutions can help you navigate all of it.

The Author

Blake Ellington is the CCO at Ellington Marketing Solutions.

Have your say