In order to understand why remarketing and retargeting are such critical parts of any digital marketing campaign, you first need to understand why they’re necessary in the first place. Consider that across all sectors in Q4 of 2017, about 77% of customers abandoned their orders instead of making a purchase. For retail alone, the abandonment rate was 76.2%.
Abandonment rates vary among sectors and change with each sales quarter, but the general gist is that visitors are more likely to show interest in your product or service than they are to purchase it. Remarketing and retargeting are strategies to fill in these not-so-negligible gaps and encourage visitors to return and complete their purchase.
How Effective Are Remarketing and Retargeting?
Many businesses are afraid of turning off potential customers with remarketing or retargeting techniques, but statistics show that these methods are incredibly effective for closing the deal on abandoned sales. Case in point:
- Email marketing has an ROI of $38 per $1 spent (source: Email Monday).
- Personalized email messages, such as those based on previous shopping habits or product interest deliver 6x higher transaction rates (source: Campaign Monitor).
- While the average clickthrough rate for general PPC ads is just 0.07%, the clickthrough rate for retargeted ads is 10x that at 0.7% (source: Invesp).
- Visitors to your website who are retargeted with display ads are 70% more likely to complete a purchase on your site than if they were not retargeted (source: Invesp).
When you strategically recapture the attention of individuals who have already expressed an interest in your products or services, you tap into an important, conversion-heavy method of keeping their site experience relevant so they come back when they’re finally ready to complete the purchase.
And as for turning off those potential customers with targeted ads and emails? Statistics show that only 11% of consumers have negative feelings about retargeted ads. 30% report “very positive” reactions to retargeting (source: AdRoll). So while you might irk some of your potential customers, you’re much more likely to target a visitor who won’t feel negatively about the ad or email.