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Is Retargeting Worth Your Money?


It is said that only 2% of potential customers buy something on their first visit to the online store. It’s a very low conversion rate. It certainly isn’t satisfactory for those e-commerce entrepreneurs who invest a significant part of their budget in generating traffic on the website (e.g. with Google Ads). However, there is a way to improve this statistic. It’s called retargeting.


What is retargeting?

Retargeting is a marketing strategy that allows you to reach potential customers through Display Ads. But it’s not about showing them to random users, but to people who have somehow shown an interest in the products of a retargeting store. They could have done it with a visit to the store’s website, by clicking on a product or adding it to the basket without finalizing the purchase.

In a retargeting campaign, the data of potential customers who have performed any of these activities are collected through cookies. Then, on the basis of the collected data, a store launches retargeting ads to encourage users to return to the shop and finalize their purchases. These advertisements are displayed on third parties’ websites.

Retargeting ads can promote a store (a brand), its services, collections, or even a specific product. They can be freely customized, depending on the stage at which the customer left the e-commerce website.

E-commerce businesses can create retargeting ads using the Google Display Network, but also Facebook.


The purpuse of retargeting is to make customers return to the store and complete their purchases


Types of retargeting

It’s worth mentioning that there are two types of retargeting ads – on-site and off-site.

The first type focuses on targeting people who have already had some interaction with the store’s website or social media and are therefore aware of the existence of the brand.

Off-site retargeting, on the other hand, is addressed to people who have not yet had contact with a brand but show similar interests to the brand’s customers (by looking for similar products and services in the search engine). Such people can be reached on the basis of keywords and questions they typed in Google.


Remarketing and retargeting – is it the same?

Remarketing and retargeting are often used interchangeably, but they don’t exactly mean the same thing. Retargeting is focused on creating paid ads addressed to potential customers. Remarketing focuses mainly on email campaigns targeted at customers who, for example, abandoned a shopping cart in an online store or added a product to their wish list. A good strategy in such cases is to send an e-mail to the customer with a reminder or even with a discount code.


Why is it worth investing in remarketing?

Okay, we’ve already explained all the concepts and principles. But the most important question for today remains – is retargeting a strategy worth investing in? Yes, it is! And here’s why:

✓ Higher CTR

It’s the most important of all reasons. Retargeting ads have a higher CTR (click-trough-rate) than other campaigns, such as Search Ads. This is because retargeting is aimed at people who have somehow shown interest in the offered products (or products similar to those in your offer). They have taken the first step towards shopping in your shop. From the very beginning, you have a better chance to succeed.

The experience of other businesses

Currently, most of the marketing agencies and brands make use of the benefits of retargeting. While just a few years ago only a very small part of the marketers had a part of their budget dedicated to retargeting. This is a clear sign that interest in retargeting is growing and the results are satisfactory.

Possibility to attract new customers

The main purpose of retargeting is to remind people about the products they found interesting earlier. However, this form of advertising is also a great tool for gaining the interest of completely new customers. Why? Because retargeting ads can also reach potential customers who were looking for products very similar to ours, but outside our store.


What else is a good way to attract new customers? Effective marketing strategy!


Positive user experience

Retargeting often has a positive impact on the so-called user experience. Stores reach out to customers who may have wanted to finalize a purchase but failed to do it for some reason. Maybe something distracted them and they forgot to go back to shopping. Maybe they wanted to do market research, compare prices and terms of purchase and simply forgot to save your website’s address. In either case, those customers will be happy to see the products they like thanks to retargeting ads.


Retargeting increases sales value and has a positive impact on the CTR


Retargeting makes it possible to customize the ads, which is one of its biggest advantages. By adding retargeting to a marketing strategy, one significantly improves the number of sales and the CTR ratio. Despite the fact that its cost is higher than ordinary ads, it’s definitely worth the money. With retargeting, e-commerce stores can be sure that the budget allocated to it will be used as efficiently as possible.


Do you want to drive traffic to your store?


A big fan of Internet Marketing who ejoys Automation Tools. His mission is to help small and medium-sized companies manage and advertise their e-commerce businesses.

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