Retargeting, often used interchangeably with the term remarketing, helps keep your brand in front of visitors even after they have left your website. This form of online advertising has been around long enough to evolve into a smart way of selectively targeting consumers based on their internet actions. Still, our retargeting statistics show, there is a substantial scope for individual marketers and digital marketing companies alike to utilize this strategy to push their click-through and conversion rates upward. The top social marketing platforms are joining Google in offering a range of options to retarget potential customers. This means that you would be yielding to your competition if you haven’t woken up to the many benefits of retargeting.
These statistics will help you understand why retargeting should be an essential part of your digital marketing arsenal in 2020. We have also included some of the most important best practice aspects. Keep them in mind when deploying retargeting ads!
According to a study of marketing budget allocation by activities, paid display accounted for the largest component (16%) of spending by digital marketers in 2018. Of this, 41% of the budget was spent on retargeting efforts. Other prominent marketing activities include social media marketing (14%), traditional marketing (13%), email marketing (10%), and content marketing (10%).
These figures are from retargeting statistics 2015. Given that there has been an increasing focus on retargeting in the last few years, the allocations to retargeting ads are likely to be higher in 2019. While it is true that traditional display advertising is reaching a stage of diminishing returns, retargeting remains an underused strategy. Using it can help reap benefits and improve conversion rates for quite some time to come.
According to a survey on retargeting trends, despite the growing awareness of the benefits of retargeting, it still remains surprisingly underused. Of course, the ways of motivating consumers to complete their purchase depend on the nature of your business. In some cases, banner ads may be the right option, while in others, offline marketing via direct mail may be the way to go.
33% of marketers say that the primary goal they seek from retargeting is increase in brand revenue and acquisition of new customers. According to stats on retargeting, additional goals include increase in site engagement (16%), and increase in brand awareness (12%). As we have seen, a positive impact on site conversion rates remains the primary purpose of investing in retargeting.
Not too far behind Facebook is Google Remarketing, used by 13.67% of the top 1 million sites in the world. The next four positions are occupied by Criteo (3.7%), Bing Universal Event Tracking (3.42%), Twitter Ads (2.14%), and AdRoll (1.64%). Among the top 10000 sites, Facebook’s share is 51.14% and Google’s share is 37.94%.
This means that 98% of the visitors a website manages to attract leave without spending a penny. They don’t care about your expensive and carefully worked out digital marketing strategies. Retargeting helps in bringing some of these 98% visitors back to your site. Thus, it is a logical strategy to ensure that your overall marketing spend earns you a better ROI.
These retargeting CTR statistics mean that a retargeting campaign, on average, performs nearly ten times better than a regular display ad. This translates into a proportionately better conversion of online visitors compared to other digital advertising strategies. If you are familiar with the stakes of online advertising, you would know that a 10X difference in engagement rates is a significant difference in ROI.
According to a study by DataXu, the impact of retargeting on conversion rates can vary depending on the industry. As per retargeting statistics, ecommerce customer service businesses see an average of 128% increase in conversions. Those associated with financial services see average growth as high as 147%.
These other avenues include search, email, and display advertising. It is not difficult to understand why marketers would have a positive opinion of retargeting! It helps strengthen other marketing strategies through strategic reminders to potential customers, without any significant expense.
On the other hand, ad retargeting statistics show that only 11% have a negative opinion about retargeting campaigns. 59% have a neutral reaction. This should provide comfort to buyers of retargeted ads, who might worry about consumers getting irritated. With a vast majority of consumers not viewing retargeting as a negative feature, the likelihood of them being influenced to make a purchase is higher.
The reason is that behaviorally targeted ads remind them of what they were looking at previously. This shows that at least one-fourth of online consumers are open to receiving retargeted ads. Moreover, retargeting stats show that about 60% of consumers are neutral to ads based on their past actions on the internet. This proves once again that the overall opinion about targeting works in favor of using such a strategy.
Being drawn to products in advertisements is the most commonly cited reason by consumers for clicking on retargeted ads. A convenient way to visit a website that users already intended to visit (28%) and the desire to find more information on the product in the ad (21%) are the other prominent reasons according to retargeting ad statistics.
Most online shoppers do not spend their money at a website on the first visit, and many required that extra nudge for their intent to convert into purchase behavior. This nudge is provided by retargeting, resulting in 70% improved chances of converting those visitors into buyers.
Mobile retargeting statistics show that it is an important way to maximize the value of your existing customer base. A well-defined mobile retargeting strategy can change the economics of mobile performance marketing. It produces three times more sessions per dollar spent on traditional advertising, on average, and driving roughly 48% higher click-through rates.
Retargeting is seen to have a particularly strong impact on branded search where users search online for specific brands. According to dynamic retargeting statistics, retargeting has proven to result in a more than 1000% improvement in consumers looking for specific brands after being reminded of them.
Why are so many marketers investing in retargeting ads? Evidence shows that when retargeted ads try to remind shoppers of items they once seemed interested in, they also take notice of these ads. There is a certain recall value for these items, which, as per retargeting benchmarks, works in favor of prompting buyers to complete the purchase they might have abandoned in the past.
Retargeting is also useful in getting past online buyers to revisit a website for a repeat purchase. Such purchasers spend nearly 500% higher on average compared to first-time buyers. To put it simply, there is more bang for your buck when you spend on attracting past buyers to your site.
The issue of cart abandonment is a well-known one in online marketing. It is true that these statistics on retargeting ads vary widely based on the study. However, it is generally believed that over 70% of customers abandon their shopping carts at some point in the checkout process. Of these, only about 8% return to complete their purchase if not retargeted. However, you can boost this conversion rate to 26% if you invest in retargeting ads.
Conventional retargeting is offsite.
But what does offsite mean exactly?
Well, it means that visitors to your site are targeted with ads once they have moved on from your site.
However, marketers often tend to ignore onsite retargeting. Online marketing retargeting statistics show that, with the latter, you can target potential customers before they leave with the help of customized exit popups that are triggered as a visitor is about to leave.
LinkedIn provides certain unique opportunities to target B2B buyers who might still be in the funnel but haven’t been converted yet. According to B2B LinkedIn retargeting statistics, using retargeting ads on the platform can also result in:
Click-through rates are known to decline over time. But it has been found that those who do click on your retargeting ads after having seen them a few times already become nearly twice as likely to convert. This increase in conversion rates is seen over the first five to six ad impressions. It is a direct result of brand reinforcement through multiple messages. Ad fatigue – the phenomenon of people tiring of seeing the same thing over and over again – is also reported to be lower (nearly half) in case of retargeting ads compared to generic display ads.
Search ads, especially in highly competitive industries, can be quite expensive in terms of cost per click. In contrast, retargeting ad clicks typically cost anywhere from 2X to 100X less. So, it is true that you will see higher conversion rates with search ads as compared to retargeting ads.
If the higher conversion rate is offset by higher click prices, you might actually get a higher ROI with your display and social retargeting ads.
Retargeting stats show that it has been historically seen as a business to consumer practice. This means that other marketers have been slower to adopt this strategy. However, B2B customers are even more interested in easy-to-access solutions and clear upfront information compared to general B2C consumers. Smart B2B retargeting can get you significantly better results.
According to B2B retargeting statistics, in terms of conversions per click and click-through conversions per click, B2B retargeting performs better than B2C retargeting by 273% and 189%, respectively. This is dependent, of course, on how well you research your B2B customer before launching your retargeting campaign. B2B consumers tend to be busier and have a higher sense of purchase agency compared to consumer goods buyers. Optimizing your retargeting ads in terms of length, frequency, and precision of message is the key to success.
The logic behind this is that people who have been to your website in the previous few weeks are more likely to recall the visit. As per Facebook retargeting statistics, if you target a longer time frame, it is very likely that people would have forgotten about your brand. So, they would be less likely to engage with your ads. Facebook offers a range of options to selectively retarget people who visit your website, thus helping in improving conversion rates.
While it’s smarter to run different ads depending on the part of the funnel the potential customer is at, even if you are running the same set of ads for everyone, it is important to realize that user fatigue sets it after a few months, ads begin to blend into the background. Retargeting statistics show that, to keep the interest of users piqued, it is good to rotate your ads every few months.
Overexposure is something you need to be careful about when retargeting potential customers. No one wants to be constantly followed around on the internet. It helps to use a frequency cap to prevent negative association with your brand due to overexposure. While the standard frequency recommended is about 17 to 20 ads per user per month, a faster or slower frequency might make sense depending on the nature of your campaign.
Statistics on retargeting show that, instead of bombarding a potential customer with information on every single product they viewed, it is better to limit the items in the email to a maximum of about five fitting ones. This helps to personalize the retargeting email and to keep the content relevant to the customer. You should also think about the optimum balance between text-based information and images/videos.
On the whole, however, it depends on the actions taken by the site visitor. As per retargeting statistics, abandoned cart emails should be sent quicker. That way you can either catch the visitors while they are still online or satisfy their non-buyer’s remorse by helping them get a better deal. For people who abandoned the page, waiting a day or two might be better, which would allow you to take a more informational or branding approach.
This is why marketers recommend including social proof in your retargeting ads as much as possible. Social proof is the unbiased evidence of the quality of your products. It can be in the form of online reviews, testimonials, or content created by influencers and fans. Adding certain incentives that are normally not available on your site can also help entice undecided customers.
Those retargeting statistics showed us the importance of retargeting or remarketing in converting online visitors into spending customers. We also saw the slow but steady realization among marketers that they cannot afford to overlook its importance. It is necessary to keep best practices in mind for maximum benefit when using retargeting. Surely these stats will help you in sharpening your own digital marketing strategy for significantly better conversion rates in the times to come.