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In the digital age, there are many options for reaching customers and placing advertisements. One effective marketing strategy is so-called retargeting (also known as remarketing). This involves targeting people who have already shown interest in a particular product or service through their surfing behavior. The aim is to lure them back by displaying advertisements (ad impressions) on other pages or e-mails. Companies use user behavior on the Internet to deliver targeted advertising to their target group and thus benefit from a higher conversion rate.
Table of contents
What is behind retargeting? [1]
Many users visit a website several times before making a purchase decision. This is where companies in e-commerce[2] use retargeting to minimize wastage. Website visitors (who have visited the website but not made a purchase) are shown targeted advertising, for example. To do this, the system marks these users with cookies. The idea behind this: To pick up people who have already had contact with a brand and lead them to a purchase.
The technical component
Retargeting is based on two technical components: Ad servers and cookies. Ad servers are web servers that are used to manage and deliver advertising. From the ad server, a targeting pixel is embedded in the source code of an online store. When a user visits the page, a cookie is set by the pixel and information is stored on the ad server. For example, that user A has clicked on product X. If user A subsequently visits a page with the same advertising programs, advertising is played. This happens, for example, when:
a category page in the store was visited
a specific product or service has been searched for
In many cases, companies buy the ad impressions for users via Real Time Bidding (RTB). In this real-time auction, the ads are placed for which the highest bid was made. When choosing a provider, companies have several options. Retargeting platforms such as AdRoll offer real-time bidding algorithms and provide the necessary servers. This allows users to be reached via different devices, apps or social media. Companies can also run their own campaigns via Google AdWords and Facebook.
The main steps of a retargeting campaign
The retargeting process begins with the integration of a tracking code. This code makes it possible to track visitors' behavior on a website and collect information such as pages visited and dwell time. Then, the marketing department implements the following step by step:
1. Set target group
Based on the data collected, a company creates a list of people who could be potential customers. These people are then shown advertising banners if, for example, they are waiting for a special offer or have left the site with a full shopping cart.
2. Set frequency
It is important to pay attention to the frequency of advertising. If a potential customer sees a company's advertising too often, this has a negative impact on the brand image. If the frequency is too low, however, an ad is quickly lost in the mass of advertising banners. Frequency capping can be used to limit the frequency of advertising.
3. Minimize wastage
Before companies place ads, they should narrow down which user groups and topics are excluded. A good example is existing customers who have already bought the advertised product. No problem with a burn pixel. It identifies the relevant buyers and excludes a specific product from the measures.
4. Place regional advertising
Geo-targeting is a successful strategy for many companies, as it allows them to define specific catchment areas. However, care must be taken not to exclude important areas and to select the catchment area rather larger.
5. Third party cookies
Buying cookies via third-party providers is suitable for companies to reach new target groups or potential customers. For this purpose, it must be clear in advance on which pages the target audience informs itself about the company's own products.
6. Ads with wow factor
Meaningful ads are the heart of every retargeting campaign. Here, the focus should be on high-quality visuals and a convincing call-to-action button.
4 types of retargeting
Generally, a distinction is made between static and dynamic retargeting. With the former, a fixed set of ads is defined beforehand, which are played out to a target group. Another option is dynamic retargeting. Here, personalized ads are generated based on user behavior and tailored to specific interests. Here, Machine Learning[3] is often used in order to be able to optimize existing campaigns more quickly.
Site Retargeting
Site retargeting uses cookies or similar tracking technologies to track user behavior on a particular website. When a user visits the website, a cookie is placed on their computer or device. When the user leaves the website and browses another one, targeted ads can be displayed to them based on their previous visit.
Search Retargeting
Search retargeting focuses on users who search for specific keywords or search terms. A cookie is placed on the user's device when they search for a specific term. If the user then visits other websites, targeted ads can be displayed that are tailored to the user's original search query.
Social retargeting
Social retargeting takes advantage of user behavior on social media to target advertising. When a user visits a particular page or clicks on a post on Facebook or Instagram, a cookie can be placed on their device. When the user then browses other websites, targeted ads can be delivered that are tailored to their interests on social media.
Email Retargeting
Email retargeting uses the behavior of a person's email list to send targeted advertising. This involves placing a cookie on the user's device when they open an email or click on a link in the email. When the user then visits other websites, targeted ads can be served based on the user's interests. This type is referred to as remarketing.
Advantages and disadvantages of retargeting
Retargeting offers many advantages for generating more purchases and converting potential buyers into paying customers. It also creates clarity about a company's relevant target group. However, there are also some disadvantages that companies should not ignore.
Advantages | Disadvantages |
Increased conversion rate: Reach more potential customers through targeted measures. | Privacy concerns: Users may feel uncomfortable if their data is used for advertising purposes. |
Cost savings: Ads run more targeted: Costs per click or per conversion often decrease. | Ad fatigue: With too many ads, users can feel overwhelmed or annoyed = negative brand image |
More targeted advertising: ads tailored to a specific audience, resulting in greater relevance and effectiveness. | Ad blocker: Ad blocker software, blocks retargeting ads. If these are in use, companies do not reach their target with the campaigns. |
Increasing brand awareness: If the brand is confronted more frequently, it is more likely to be remembered. | High competition: Since it is a widely used online marketing strategy, the competition is high. |
Companies should ensure that they use retargeting wisely and effectively, taking into account user concerns about privacy and ad fatigue.
In online stores, it makes sense to use plugins that help with purchase abandonment, and Shopware sets a good example here. Plugins of all kinds can be easily installed and used in the shop system.
Frequently asked questions
What is retargeting?
Many customers visit a store several times before completing a purchase. This is where retargeting comes in, by targeting users with tailored retargeting campaigns to lead them to complete a purchase.
How does retargeting work?
The retargeting process starts with the integration of a tracking code into the website source code. This makes it possible to track the behavior of users and collect important information. This data is then used to create target groups identified as potential customers based on their behavior on the website. With the help of these target groups, ads can be placed that are precisely tailored to their interests.
What are the benefits of retargeting?
Retargeting offers businesses numerous benefits. These include a higher conversion rate, cost savings on advertising budgets, more targeted advertising and an increase in brand awareness. Therefore, it makes sense to integrate this strategy into the marketing plan.
