Retargeting, also known as remarketing, refers to the strategic practice of displaying adverts to individuals who have previously engaged with a brand or product. This technique is commonly employed in Retail Media to re-engage potential customers, encourage repeat purchases, and enhance overall marketing effectiveness.
Examples of the applications
Examples of the application of Retargeting include:
- Abandoned Basket Remarketing: When a customer adds items to their online shopping basket but leaves the website without completing the purchase, Retargeting can be used to display adverts reminding them of the abandoned items. These adverts can offer incentives, such as discounts or free delivery, to encourage the customer to return and complete the purchase.
- Website Visitors Remarketing: By placing a tracking pixel on their website, retailers can identify visitors who have shown interest in specific products or pages. Subsequently, they can retarget these visitors with relevant adverts to keep the brand or product at the forefront of their minds and entice them to revisit the website and make a purchase.
- Customer Loyalty Remarketing: Retargeting can be utilised to engage and retain existing customers by displaying tailored adverts based on their previous purchases, preferences, or loyalty status. For example, a retailer may offer exclusive promotions or rewards to customers who have previously made repeat purchases or reached a certain loyalty tier.
- Cross-Selling and Upselling: Retargeting can be employed to suggest complementary or upgraded products to customers based on their past purchases or browsing history. For instance, if a customer has purchased a camera, they may be retargeted with adverts for camera accessories or a higher-end model.
Benefits of Retargeting include:
- Increased Conversion Rates: By targeting individuals who have already expressed interest in a brand or product, Retargeting can significantly increase conversion rates. By reminding potential customers of their initial interest and offering relevant incentives, Retargeting aims to bring them back into the purchase funnel and encourage them to complete the desired action.
- Enhanced Brand Recall: Retargeting helps to reinforce brand recognition and recall. By repeatedly displaying adverts to individuals who have previously interacted with a brand, it helps to keep the brand at the forefront of their minds. This can be particularly effective when the customer is ready to make a purchasing decision.
- Personalisation and Relevance: Retargeting allows for the delivery of personalised and relevant adverts based on a user’s previous interactions. By tailoring the messaging and offers to individual preferences or behaviour, Retargeting can create a more personalised user experience, increasing the likelihood of engagement and conversion.
- Efficient Advertising Spend: Retargeting enables retailers to focus their advertising efforts and budget on individuals who have already displayed an interest in their brand or products. This targeted approach allows for a more efficient allocation of resources, reducing wasted ad spend on audiences who may have little to no interest.
- Customer Engagement and Repeat Purchases: Retargeting can contribute to building stronger customer relationships and encouraging repeat purchases. By staying connected with customers and delivering relevant offers, retailers can nurture customer loyalty and increase the lifetime value of their customer base.
- Data and Insights: Retargeting campaigns generate valuable data and insights into user behaviour and preferences. Retailers can analyse this data to gain a deeper understanding of their target audience, identify trends and patterns, and refine their marketing strategies accordingly.
In summary, Retargeting is a strategic practice that involves displaying adverts to individuals who have previously interacted with a brand or product. By employing Retargeting tactics such as abandoned basket remarketing, website visitors remarketing, customer loyalty remarketing, and cross-selling or upselling, retailers can increase conversion rates, enhance brand recall, provide personalisation, utilise advertising spend efficiently, foster customer engagement and repeat purchases, and gain valuable data and insights. By leveraging Retargeting effectively, retailers can drive sales, improve marketing ROI, and build stronger customer relationships in the realm of Retail Media.