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eCommerce Retargeting Strategy: Key Tips for Success

Simon Jones
June 13, 2024

Utilising retargeting ads is an integral part of every single successful eCommerce marketing plan. Working at an eCommerce business, you’re busy driving traffic to your site. However, not all of the visitors convert right away. Some only browse one or two pages on your website and then leave without buying anything. This is where retargeting ads come into play. They allow you to ‘catch up’ with your site visitors who didn’t convert the first time around and to remind them about your products and services. By doing so, you can convert website revisits into sales.

Retargeting is a great way to stay top of mind and re-engage visitors to eventually help convert them. The key to retargeting is to serve your ads to the specific audience who has engaged with your product, your brand, or your company: someone who’s visited your website browsed a product page, or even added certain items to their basket. Back in the old days, such personalisation was beyond the realm of possibility.

This eCommerce retargeting strategies blog will explore how retargeting can be a game changer for your eCommerce sales funnel. You will get valuable insights about:

Why understanding retargeting mechanics is crucial
What is the role of cookies and pixels?
Where you can start doing retargeting, and which channels you can use – we will dig deeper into the Google Display Network
How you can go serious about social media with Facebook advertising
We will explain how to do email retargeting, and why a preset automation system is best
We will even explain how to use an abandoned cart, also known as a cart recovery
We will close this blog with some best practices that you should implement into your retargeting strategy to leverage and continue to optimise your ROI even further

Understanding Retargeting in eCommerce

Retargeting is a digital marketing strategy that focuses on re-engaging website visitors who have expressed an interest in your products or services but have not yet converted. It allows you to serve targeted ads to these individuals, reminding them of their initial interest and encouraging them to take the desired action.

Retargeting is particularly effective in the eCommerce industry, where the buyer’s journey often involves multiple touchpoints before making a purchase. By strategically retargeting these potential customers, you can increase your conversion rates and drive revenue by achieving your campaign goals.

What is eCommerce retargeting and how does it work?

eCommerce retargeting involves showing targeted ads to users who have previously visited your website but did not make a purchase. This strategy works by using cookies to track users’ behaviour and then displaying relevant ads to recapture their interest and encourage them to return and complete a purchase.

Defining Retargeting and Its Mechanism

Retargeting, also known as remarketing, is a digital advertising strategy that targets individuals who have already visited your website or interacted with your brand in some way. It involves serving personalised ads to these individuals as they browse other websites or social media platforms.

The mechanism of retargeting involves placing a small piece of code, often referred to as a pixel or a cookie, on your website. When a visitor lands on the website, the code drops a unique identifier, allowing the website to track their actions and behaviours, including their IP address. This information is then used to serve targeted ads, such as Google Ads, to the visitors as they navigate the internet.

For example, if a user visits an eCommerce website and views a specific product page without making a purchase, the website can then retarget that user with ads showcasing the same product or related items. This reminder can help keep the brand top of mind and encourage the user to revisit the website and complete the desired action.

The Role of Cookies and Pixels in Tracking User Behavior

Cookies and pixels play a crucial role in tracking user behaviour and enabling effective retargeting campaigns.

Cookies are small pieces of data stored on a user’s browser by a website. They allow websites to remember information about the user, such as their preferences and browsing history. In the context of retargeting, cookies are used to track the actions and behaviours of website visitors. When a visitor interacts with a website, a cookie is placed on their browser, enabling the website to recognise them and serve personalised ads based on their past actions.

Pixels, on the other hand, are small snippets of code embedded in a website. They are invisible to the user and work in the background to collect data about user behaviour. Pixels track user actions, such as page views, clicks, and conversions, and send this information back to the advertiser. This data is then used to create targeted and relevant retargeting ads.

Cookies and pixels are essential tools for retargeting campaigns as they allow you to track user behaviour, understand their preferences, and serve personalised ads that are more likely to resonate with the user and drive conversions.

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The Significance of Retargeting for eCommerce Success

Retargeting helps build brand recall among potential customers, boosts conversion rates through targeted ads, and focuses on warm leads, which are more likely to convert. With the cost-efficiency of retargeting efforts, you can maximise your ROI and achieve eCommerce success.

Boosting Conversion Rates Through Targeted Ads

One of the key benefits of retargeting in eCommerce is its ability to boost conversion rates. By serving targeted ads to individuals who have already expressed an interest in your products or services, you can significantly increase the chances of converting them into customers.

Targeted ads have a higher likelihood of resonating with potential customers, as they are relevant to their interests and needs. By consistently reminding them of your brand and the value it offers, retargeting ads can nudge them towards making a purchase, thereby boosting conversion rates and driving revenue.

Enhancing Brand Recall Among Potential Customers

Brand recall is essential in the highly competitive eCommerce landscape. With so many brands competing for attention, it’s crucial to stay top of mind for potential customers. Retargeting ads can play a significant role in enhancing brand recall among these individuals.

By consistently showing ads to individuals who have already engaged with your brand, you reinforce your presence and message. Retargeting ads serve as reminders, keeping your brand fresh in the minds of potential customers. When these individuals are ready to make a purchase, your brand is more likely to be their first choice. Additionally, retargeting can also help enhance brand recall among loyal customers, making them more likely to continue supporting your brand in the future.

Retargeting ads can be designed to match your brand’s visual identity and messaging, creating a cohesive and memorable experience. By providing a consistent and relevant presence throughout the buyer’s journey, retargeting ads help enhance brand recall and increase the chances of converting potential customers into loyal brand advocates.

The Cost-Efficiency of Focusing on Warm Leads

Retargeting is a cost-effective strategy for eCommerce businesses, as it focuses on warm leads – individuals who have already shown an interest in your products or services.

Compared to other advertising methods that target a broad audience, retargeting allows you to allocate your advertising budget more efficiently. By targeting warm leads, you can focus your resources on individuals who are more likely to convert, rather than wasting your budget on reaching a broader audience who may have no interest in your offerings.

Retargeting ads can offer a higher return on investment (ROI) compared to traditional advertising methods. They have a higher likelihood of driving conversions, as they target individuals who are already familiar with your brand and have shown intent to engage.

By focusing on warm leads and retargeting them through various channels, such as Google paid and organic search results, you can maximise your advertising spend and achieve a higher ROI from search results. This is why incorporating content marketing into your retargeting strategy is crucial, as it allows you to create valuable and engaging content that will attract and retain warm leads, increasing the effectiveness and cost-efficiency of your retargeting efforts.

Leveraging Effective Channels for Retargeting

Retargeting can be implemented through various channels to reach potential customers at different touchpoints. By leveraging these channels effectively, you can maximise your reach and engage with your target audience more efficiently.

Maximising Reach with Google Display Network

The Google Display Network (GDN) is a powerful platform for retargeting ads. With its extensive reach across millions of websites and apps, the GDN allows you to target and reach potential customers wherever they may be online.

By utilising the GDN, you can retarget ads to individuals who have previously interacted with your brand. These ads can be displayed across a wide range of websites and apps within the Google network, keeping the brand at the top of the mind and increasing the chances of conversion.

The GDN offers various targeting options, allowing you to refine your audience and reach the most relevant potential customers. By optimising your retargeting campaigns on the GDN, you can maximise your reach and effectively engage with your target audience.

Example:

Engaging Audiences on Social Media Platforms

Social media platforms, such as Facebook, provide excellent opportunities for retargeting ads. With their extensive user base and advanced targeting capabilities, these platforms allow you to engage with potential customers in a highly personalised and effective way.

Facebook retargeting campaigns enable you to serve ads to individuals who have previously engaged with your brand on the platform or visited your website. By utilising Facebook’s advanced targeting options, you can tailor your retargeting ads based on user demographics, interests, and behaviours.

The highly engaging nature of social media platforms makes them ideal for retargeting campaigns. By delivering personalised and relevant ads, you can capture the attention of potential customers and guide them back to your website, increasing the chances of conversion.

Example:

The Power of Email Retargeting for Cart Abandonment

Email retargeting is a highly effective strategy for reaching out to individuals who have abandoned their shopping carts. By capturing their email addresses during the checkout process, you can send targeted follow-up emails to remind and encourage them to complete their purchase.

Email retargeting allows you to personalise your messaging and offer incentives, such as discounts or free shipping, to entice customers back to your website. By using dynamic content in these emails, you can showcase abandoned items or offer related products that may be of interest.

The power of email retargeting lies in its ability to reach customers directly in their inboxes, where they are more likely to engage with the content. By leveraging email retargeting, you can recover lost sales and increase your conversion rates.

Implementing Best Practices in Your eCommerce Retargeting Strategy

To ensure the success of your retargeting campaigns, it’s essential to implement best practices in your strategy. By following these practices, you can maximise the effectiveness of your retargeting efforts and increase your chances of driving conversions.

Segmenting Your Audience for Precise Targeting

Segmenting your audience is crucial for precise targeting in your retargeting campaigns. By dividing your audience into specific segments based on their interests, behaviours, or demographics, you can create highly targeted ads that resonate with each segment.

Custom audience targeting is a powerful tool for retargeting. By creating custom audiences based on specific criteria, such as website visitors, email subscribers, or past customers, you can serve ads specifically tailored to each group’s interests and needs.

Segmenting your audience allows you to deliver more relevant and personalised retargeting ads, increasing the chances of conversion. By understanding the unique preferences and behaviours of each segment, you can refine your messaging and drive higher engagement and conversions.

Setting Limits with Frequency Capping

One of the important aspects of a successful retargeting ad campaign is setting limits with frequency capping. Frequency capping refers to the maximum number of times an ad will be shown to a specific user within a certain time. This is important to prevent ad fatigue and avoid overwhelming users with too many ads.

By setting a frequency cap, you can ensure that your retargeting ads are seen by your target audience without becoming intrusive. This allows you to strike a balance between reaching potential customers and respecting their online experience.

It is recommended to test different frequency caps to find the optimal number of ad impressions that generate the desired results. Monitoring the performance of your retargeting campaign and adjusting the frequency cap accordingly can help improve the effectiveness of your ads and increase conversion rates.

Designing Compelling and Relevant Ad Creatives

When it comes to retargeting ads, designing compelling and relevant ad creatives is key to capturing the attention of your target audience. Your ad creatives should be visually appealing and aligned with your brand’s messaging and identity.

To create effective ad creatives, consider using eye-catching visuals, clear and concise ad copy, and a strong call-to-action. Use high-quality images or videos that showcase your products or highlight the benefits of your services.

It is also important to make your ads relevant to the user’s previous interactions with your website. For example, if a user has abandoned their shopping cart, you can create a retargeting ad that offers a discount or incentive to encourage them to complete their purchase.

By designing compelling and relevant ad creatives, you can increase engagement with your retargeting ads and improve the chances of converting potential customers.

Examples:

The Continuous Process of Analysis and Optimisation

Retargeting ads require a continuous process of analysis and optimisation to ensure their effectiveness. This involves monitoring the performance of your ads, analysing the data, and making necessary adjustments to improve their results.

Using tools like Google Analytics, you can gain valuable insights into the performance of your retargeting campaigns. You can track metrics such as click-through rates, conversion rates, and engagement to understand how well your ads are performing.

By analysing this data, you can identify areas for improvement and make data-driven decisions to optimise your retargeting ads. This may involve tweaking your ad copy, adjusting your targeting criteria, or testing different ad formats.

It is important to regularly review and optimise your retargeting campaigns to ensure that you are maximising their potential. By continuously analysing and optimising your ads, you can improve their performance, increase conversion rates, and achieve your marketing goals.

eCommerce Retargeting Strategy

Retargeting in eCommerce is a powerful tool to boost conversions and enhance brand recall. By targeting warm leads through channels like Google Display Network, social media platforms, and email retargeting, you can maximise reach and engage potential customers effectively. Implementing best practices such as audience segmentation, frequency capping, and compelling ad creatives ensures a successful retargeting strategy. Continuous analysis and optimisation are key to meeting goals like generating brand awareness, driving conversions, and completing the buyer’s journey. Embrace retargeting as a must-have in your marketing arsenal for eCommerce success.

Ready to take your eCommerce website to the next level?

Having a stellar retargeting strategy is not the only approach you can take to converting website users. To maximise the performance of your website, it’s fundamental to deploy a variety of paid marketing tactics. If you’d like to discuss a holistic approach to achieve paid marketing success then, get in touch with our expert team today.

Written by

Following a successful career in Data Systems and Web Management, both in the UK and Australia, Simon decided to focus his creative and analytical skills on developing successful data-driven campaigns for innovative brands and retailers. Always striving to exceed client expections, Simon uses his digital marketing knowledge and expertise to build paid strategies that maximise lead generation and drive conversions. Away from the office Simon enjoys festivals, music production and craft beers....quite often at the same time!

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