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“Retargeting” is a very effective, rapidly growing technique to improve the conversion rate from digital advertising. Only recently have advertisers been able to use the mobile channel for retargeting.
A new study from AdRoll looked at the performance of retargeting ads on Facebook, and found that mobile was not only more effective, it was also less expensive. Check out the full study here, as well as a whitepaper on Facebook advertising.
As explained on Retargeter.com, “For most websites, only 2% of web traffic converts on the first visit. Retargeting is a tool designed to help companies reach the 98% of users who don’t convert right away.”
An example of retargeting would be where a consumer has visited the Nike site to see a certain pair of shoes. Later, when visiting Facebook, that same pair of shoes would show up in an ad on the Facebook page.
For more on how Retargeting works, see the box at the bottom of this article.
Retargeting on Facebook has been a big success, with many brands adopting this practice. To facilitate retargeting, over the past year Facebook has released both Facebook Exchange (FBX) and Custom Audiences from Website (WCA).
To see just how effective these ads are, AdRoll conducted a study looking at over 800 million ad impressions from over 200 advertisers. Here are some of the top line results:
According to Adam Berke, AdRoll President, “Now that there are a variety of ways to retarget across the world’s largest social network, and the ability to reach users across a range of devices, we wanted to break down the results so marketers can decide what makes sense for their business, and what to expect.”
Retargeting is a cookie-based technology that uses simple a Javascript code to anonymously ‘follow’ your audience all over the Web.
Here’s how it works: you place a small, unobtrusive piece of code on your website . The code is unnoticeable to your site visitors and won’t affect your site’s performance. Every time a new visitor comes to your site, the code drops an anonymous browser cookie. Later, when your cookied visitors browse the Web, the cookie will let your retargeting provider know when to serve ads, ensuring that your ads are served to only to people who have previously visited your site.
Retargeting is so effective because it focuses your advertising spend on people who are already familiar with your brand and have recently demonstrated interest. That’s why most marketers who use it see a higher ROI than from most other digital channels.
Also in MobiAD News: “Retargeting”: A marketers dream coming soon
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