If you’re frustrated by poor ad performance and don’t know where to start improving your marketing campaigns, you’re hardly alone. Deloitte’s annual marketing analysis found that CMOs spent 70% more on mobile marketing in 2020. Still, nearly a third of those CMOs were frustrated because they saw no improvements in business performance. Likewise, LinkedIn’s global study of marketing professionals reports that most marketing pros constantly struggle to measure their ROI and aren’t confident in their campaign outcomes.
That’s where retargeting ads can help. No matter what channels you use, retargeting will save you money, drive results, and build customer engagement. If you want to effectively identify leads and convert those leads into happy, revenue-generating customers, it’s time to explore the benefits and best practices of customer retargeting.
Benefits of Retargeting Ads: Why Every Business Needs Retargeting
Take a quick peek at your marketing funnel as it currently exists today. When you’re reviewing your analytics, how often do you see a customer visit your website or sales landing page, read about your product or service, and check out immediately?
For most businesses, that average conversion rate often hovers between 2% and 4%.
It typically takes numerous touchpoints in the customer journey to catch a potential lead’s attention, win that person’s trust, and get them to make a purchase. So what happens to the other 96% to 98% of your leads?
Those potential customers—and the ad spend you used to reach them the first time—are wasted unless you retarget your advertising.
A retargeting campaign is all about targeting specific visitors to your website (or people who’ve seen a specific ad or marketing campaign) and sending them customized ads aimed at pushing them further through your customer journey.
The premise and practice of retargeting ads are straightforward:
- A potential customer visits your website or views a specific ad.
- Your landing page or your advertising platform (such as Google AdWords, Facebook, and others.) tags the potential customer with a tracking pixel.
- The customer leaves your site or clicks the ad without buying your product or service.
- The customer browses the web later and is sent new ads designed to recapture their attention and bring them back to your website.
The benefits are clear:
1. Retargeting Ads Keeps Customers Engaged
A majority of CMOs told LinkedIn that their sales cycle was a minimum of three months. This means your initial marketing campaign will inherently fail without a constant and consistent effort to keep your leads engaged. A retargeting campaign does that.
2. Retargeting Ads Keeps Ad Spend Down
Spending more money to get new leads is a fast way to deplete your quarterly marketing budget. Save money by retargeting ads. It’s far more economical and effective to re-engage a lead that hasn’t purchased but has indicated an interest by visiting your site or clicking an ad.
3. Retargeting Offers Indirect Benefits, Too
Don’t develop tunnel vision. Your goal as a marketing professional isn’t just to get new customers. It’s also about supporting overarching brand interest, engagement, and trust.
Adding retargeting in your marketing campaign helps keep your brand in front of potential customers so that you’re front-of-mind when they face a future pain point that your services can solve or need a solution that your products offer.
Retargeting Metrics: When Should You Try Retargeting?
Retarget your ads whenever you want to recapture leads and boost your sales. In other words, retargeting is a smart idea for all brands, whether your business model is B2B, B2C, or a hybrid between the two.
However, there are a few specific concrete metrics and sample scenarios where retargeting ads makes the most sense:
- Audience size: Depending on your platform, there may be a bare minimum of visitors/leads required. For example, both Facebook and Google need an audience size of at least 1,000 people to run a retargeting ad campaign (e.g., 1,000+ visitors to your website or 1,000+ people who’ve seen a specific ad set).
- Funnel KPIs: Sometimes, you may wish to focus your retargeting efforts on a specific step in your buyer’s journey. For instance, if you’re noticing a significant drop in engagement between users subscribing to your email list and then clicking through to an emailed offer, you may want to retarget that gap specifically.
- Specific marketing goals: There may be times where you want to only reach out to people who have already indicated an interest in your brand. This includes promoting bestsellers to past but un-engaged customers or introducing a new service to existing subscribers of another service you offer.
Get Buy-In for Retargeting Your Ads: Powerful Retargeting Case Studies and Ideas
If you need to win over your boss or get your team on board with a new retargeting initiative, these statistics and sample case studies will win over even the most staunch opponents to your new promotional strategies.
1. Customers Find Retargeted Ads Useful
Have you ever visited a website, thought to yourself, “I’ll come back later,” and then promptly forgot? Have you ever meant to take advantage of a soon-to-expire deal but missed the deadline?
Retargeting isn’t just a self-serving promotional tactic. Many users find it useful, with 25% of visitors saying they liked how retargeted marketing reminded them of something they needed or action they planned to take.
2. Retargeting Ads Boosts Sales in Measurable Ways
The statistics speak for themselves:
- Visitors to a website are 43% more likely to convert if they’re retargeted.
- In an age of ad blocking, studies show visitors are more likely to pay attention and actually view an ad that’s retargeted versus a so-called “cold” ad.
- People engage with retargeted ads more, clicking on them seven times more often than standard advertising.
- In a survey of CMOs, nine out of ten marketing professionals say that their retargeted marketing campaigns performed on par with, or even better than standard display ads, search ads, and email campaigns.
3. Retargeting Works Across Numerous Industries
The above statistics aren’t anomalies, nor are they sequestered to just one specific industry or only tech-related fields. Here are examples of success from a diverse array of industries:
- Luxury pre-owned watch store Watchfinder noticed that 99% of their website visitors left without purchasing. They employed retargeting via Google’s ad platform and saw their ROI go up by a whopping 1300%.
- A religious film promotional campaign was struggling with low email engagement, so they employed retargeted ads aimed at their email list and gained 12,000 new leads for their movie promotions.
- Personal grooming brand Manscaped employed mobile retargeting and saw nearly a 400% ROI.
How to Retarget Ads: Getting Started 101
In general, getting started with a retargeting campaign involves a few foundational steps tailored to your personalized requirements.
Step 1: Start Tagging Your Leads
It all begins with collecting data that helps you identify the primary audience segments for your retargeting. No matter if you use Google, Facebook, Instagram, Hubspot, or any other retargeting platform, the one thing each service has in common is the use of a tracking pixel.
This lets you retarget customers who have visited specific pages, seen specific ads, or taken (or not taken) specific actions.
Step 2: Know Your Retargeting Goals
Every brand will have a specific target or KPI it needs to hit. However, most of these will boil down to two overarching questions:
- Are you trying to simply build brand awareness (such as building awareness about a new launch, a new sale, etc.)?
- Or are you aiming for improved conversion (like re-engaging dormant leads who haven’t made a purchase yet)?
Step 3: Build and Target Your Audience Segments
High-performing retargeting campaigns aren’t a free-for-all frenzy. Instead, you need to segment your audience into specific lists that let you deliver one detailed message that’s tailored to their needs, their interests, and the action you want them to take next.
CMOs and marketing professionals tend to link their campaign goal with a specific retargeting strategy:
- Retarget based on behavior, actions, or lack of actions (e.g., show them an ad if they visited page 1 in your funnel but not page 2).
- Retarget based on time (such as how long it’s been since they saw an ad or visited a link).
- Retarget based on their status as an existing customer, email subscriber, a follower on social media, etc.
For example, you might have a segment of people that:
- Saw an ad about a whitepaper you’re offering
- Visited the whitepaper landing page and opted into your email list
- Didn’t visit the actual link where they could download your whitepaper
Your retargeting campaign could then send them an ad reminding them to download their free white paper, thus advancing them through your content marketing funnel.
Step 4: Optimize Your Retargeting Campaign
Don’t just throw a generic ad at your segment. Personalize, personalize, personalize!
For example, if your retargeting campaign is based on recapturing someone who visited your store but didn’t purchase anything, you could send them an ad that invites them to check you out again with an exclusive 10% discount.
Alternatively, suppose someone hit a landing page to learn more about your consulting services but didn’t book a call. In that case, you could send them a campaign that reminds them to book time with your team (perhaps incentivizing it with a free add-on service or a deadline-driven discount).
For the best performance when you’re learning how to retarget ads, aim to:
- Write an impactful headline that connects with your customer’s pain point, problem, or specific stage in the buyer’s journey.
- Include actionable copy (no long-winded essays or passive voice!) and graphic design that pops out on the screen.
- Add a CTA button with a clear benefit (something free, a deadline, a discount, etc.).
Ready to Try Retargeting Ads for Your Business?
In conclusion, retargeting ads maximize your marketing ROI by:
- Tagging and reconnecting your brand with your highest-value leads and potential customers
- Reigniting their attention and recapturing their interest with specific messages and visuals that connect with their stage in the buyer’s journey
- Advancing the lead through your funnel to turn them into a paying customer
If you want to try retargeting ads to save you from spending money unnecessarily, contact Pyxis Performance and book a free demo today. Pyxis Performance’s targeting AI lets you accurately target your most profitable audience segments, understand your audience at a deeper level, and retarget your campaigns smartly and strategically.