What is Retargeting in Digital Marketing?
In any marketing campaign, in addition to targeting new customers, you also need to ensure your older customers keep coming back. And that is the basic purpose of retargeting. So, let’s delve deeper into what is ad retargeting and how these ads differ from remarketing campaigns.
Definition of Retargeting
Re-targeting is a marketing strategy targeting lapsed users who engaged with your ad but did not convert into customers. These are primarily paid ad campaigns published with the aim of re-engaging your potential audience. The main goal behind retargeting is to convert a broader segment of your target audience.
What are Retargeting Ads?
When it comes to these ads, there are 2 types of advertisements that can give you an answer to the question, “What is a retargeting ad?” These 2 types include:
- Static Retargeting: Static ads are generic campaign ads generated beforehand based on the portion of your app that the users interacted with. These are common ads that are the same for all users.
- Dynamic Retargeting: Contrary to static ads, these ads are created on a per-user basis. By analyzing the user’s behavior, aspects of interest, and engagement, these ads are customized to generate better results in the form of better engagement from the targeted user.
What is Remarketing in Digital Marketing?
While retargeting is a common practice in digital marketing, it is also often confused and used interchangeably with remarketing. But there are small aspects that make these 2 different from each other. The first difference is the very nature of this marketing strategy. The definition of remarketing ads is emails sent to past customers who have indeed done business with a brand.
This remarketing definition implies that the purpose of the strategy is to re-engage older customers, not leads. By appealing to the value that the business had for the customer earlier, this strategy aims to compel them to invest in their offerings once again.
What is Remarketing and Retargeting Difference?
Considering the retargeting and remarketing meanings above, the difference is small but distinct. Retargeting is targeted towards potential customers who had almost come the whole way in the past but did not actually become customers. On the other hand, the definition of remarketing means that it is targeted towards actual older customers of the brand. This makes retargeting a re-engagement strategy for expanding the customer base and remarketing a re-engagement strategy to retain older customers.
Benefits of Retargeting Marketing
Retargeting is a great strategy for growth marketing. As such, here are some benefits that marketers can experience from deploying retargeting ads:
- Increased Brand Awareness: Since retargeting is targeted to users who had once interacted with your ads. So, constantly making your brand ads visible to them helps instill your brand at the forefront of their mind, making them more likely to convert as time goes by. In this way, it increases brand awareness by subconsciously staying top-of-ming of your potential customers.
- Cost-effective Marketing: Retargeting is considerably more cost-effective, as you are only showing your ads to those who have interacted with your ads before. Not only is the ad volume lower, but it is more likely to lead to successful conversions, making it more value for money.
- Improved Conversion Rates: By constantly staying top-of-mind of your potential users, retargeting ads are shown to yield better conversion rates. These can act as just the push those users need to finally decide to invest in your offerings.
- Customized Ads: One of the best benefits of re-targeting ads is the fact that it allows you to show customized ads based on the user’s behavior and preferences. This kind of dynamic retargeting can prove to be effective by giving the final push to customers, showing ad content based on exactly what they need or want.
Retargeting is a very effective strategy and can be a valuable tool in any marketer’s arsenal. By giving you the opportunity to connect to potential customers who have shown active interest in the past, these ads can guide them toward conversion effectively. Furthermore, with static and dynamic retargeting, you can also customize the way you make your offerings visible to them, creating even more chances for you to interact with your potential customers and give them the nudge to finally convert.