In: Search

Retargeting 101

Jun 13, 2014

Retargeting 101

Early retargeting strategies were not nearly as sophisticated as they are today.  Previously when advertisers used web advertisements, they would place ads on related sites that they believed customers viewed and place ads solely on these sites.  While this approach generally worked, it lacked the specificity that we use today with cookies.  A web cookie is a tiny piece of code placed in your search browser by sites you visit that keeps track of your movements within the search browser.  With cookies, advertisers can tell who has previously visited a website and market to only this group, ‘retargeting’ them back to the site.  Retargeting saves companies thousands in advertising budgets by bringing back customers who have already showed interest in their website or company.


Types of Retargeting

Retargeting is categorized into four main types:

  1. Site based- Users visit your website and browses the pages and links on your site.  The same user then leaves the site and continues searching on other sites.  A retargeting ad will appear in various ad spaces on the other sites linking them back to the original site to complete an anticipated action or simply revisit the site.

  2. Search based- Quoted as being the fastest growing retargeting technique in 2012, search based retargeting is based on advertisers bidding in real-time for display impressions based on the different keywords a user types into search engines.

  3. Email based- Email based customers are 11% more valuable than the average customer according to Conversionxl.com, making email based retargeting the third highest source for customer acquisition. Email based retargeting ads are sent to a company’s mailing list subscribers.  Once opened, the email drops a cookie in the viewer’s browser and the cookie places ads around the web as the user browses various sites.

  4. CRM based- The main difference with CRM retargeting is it uses the company’s offline customer database, full of customers who may not visit the company website, to see online display advertising issuing them to the website.


Real-Time Bidding

Real-time bidding (RBF) for retargeting ads is most commonly used with search based retargeting as previously mentioned in the examples above.  Much like an auction or stock market, advertisers will bid in real-time for open ad spaces on various websites. The available space goes to the highest bidder which occurs in the brief time, milliseconds really, before a web page is opened by a potential customer.  The bidders are not actual people, but a software program called a Demand-Side Platform (DSP), allowing advertisers to manage their budget and inventory on many ad exchanges in real time.  RBF gives the advertiser enhanced consumer targeting, higher customer reach frequency, and eliminates wasted budgets on impressions or advertisements.  RBF not only benefits the advertiser but also the website publisher, who is receiving the highest bid for their prime ad space not just a set price.


Conversion Rates

Retargeting ads are quickly becoming a force for digital advertising.  A recent Comscore.com study reported that although not all customers clicked on their ads, brands saw a 1046% increase in branded searches once they began retargeting ads.  This View-Through conversion, or the rate as which customers viewed an ad and chose not to click on it, is an important value metric for digital advertisers to continually improve.


Begin a Retargeting Campaign

We are excited to be able to offer this service to our entire client base at ATAK Interactive.  According to IDC, RTB display ads will increase to 59% by 2016 and global spending on RTB display ads could reach $13.9 billion by 2016, making retargeting ads an intriguing opportunity for your company’s advertising campaigns. To learn more about retargeting ads and to add this approach to your advertising strategy contact Austin at Austin@atakinteractive.com or call the ATAK offices at 1-855-472-1892.







Video by Acuity Ads https://www.youtube.com/watch?v=-DiIsrJUsRU


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