In the highly competitive world of eCommerce, getting a potential customer to make a purchase is often a multi step process. One of the most effective ways to ensure your audience doesn’t forget about you in the process is through retargeting ads. Retargeting allows you to reconnect with website visitors who didn’t convert during their first interaction with your brand. By showing them relevant ads across various platforms, you increase the chances of bringing them back to complete a purchase.
In this blog post, we’ll explore why retargeting ads are crucial for eCommerce businesses, how to set up successful retargeting campaigns, and tips to maximise their effectiveness.
1. What is Retargeting and Why Does It Matter?
Retargeting (also known as remarketing) is a digital marketing technique that involves showing ads to users who have already interacted with your website, app, or social media profiles but didn’t complete the desired action (e.g., a purchase or sign up). The goal of retargeting is to re-engage these users and remind them of your products, nudging them to return and convert.
Increased Conversion Rates
Studies show that retargeted users are 70% more likely to convert compared to those who haven’t interacted with your brand before. This is because retargeting ads keep your brand top of mind and encourage users to follow through with their purchase.
Cost Effective Advertising
Because retargeting ads target an audience that has already shown interest in your products, they tend to be more cost effective than traditional display ads. You’re not wasting money on people who have no interest in what you sell. Instead, you’re targeting users who are already familiar with your brand, improving your chances of converting them.
Improved ROI
By focusing your ad spend on users who have already interacted with your brand, retargeting ads often result in higher return on investment (ROI). This is particularly beneficial for eCommerce businesses, where margins are often tight, and efficiency is key.
Pro Tip: Retargeting ads can be up to 10 times more cost effective than traditional advertising due to their precision in targeting.
2. How to Set Up Effective Retargeting Campaigns
Setting up a retargeting campaign requires a bit of planning, but with the right approach, it can be a highly effective tool in your eCommerce marketing strategy. Here are the key steps to get started.
Install Retargeting Pixels
To run a retargeting campaign, you need to install retargeting pixels on your website. These are small pieces of code from advertising platforms like Google Ads or Facebook Ads that track visitors to your site and enable you to display ads to them as they browse the web.
For example, when a user visits your site and views a product, the retargeting pixel collects that data and makes it possible for you to show that same user ads for the products they viewed while they continue browsing online.
Segment Your Audience
Not all visitors are the same, and different segments of your audience may require different ad approaches. Segment your audience based on their behaviour, such as:
- Product viewers: Visitors who viewed a specific product but didn’t make a purchase.
- Cart abandoners: Visitors who added products to their cart but didn’t complete the checkout process.
- Previous buyers: Customers who have already purchased from your store and may be interested in repeat purchases or complementary products.
By segmenting your audience, you can tailor your ads to be more relevant and engaging, increasing the likelihood of conversion.
Create Compelling Ads
The effectiveness of your retargeting campaign hinges on the quality of the ads themselves. Create visually appealing and compelling ads that remind the viewer of the product they viewed or left in their cart. Use language that encourages action, such as “Don’t miss out!” or “Your cart is waiting for you.”
Pro Tip: Use dynamic retargeting ads, which automatically show the exact product the user viewed on your website. This level of personalisation tends to increase conversion rates.
3. Best Practices for Retargeting Ads
To get the best results from your retargeting campaigns, here are some best practices to follow.
Timing is Key
Timing plays a significant role in the success of your retargeting ads. You don’t want to bombard users with ads immediately after they leave your site, but you also don’t want to wait too long. A common best practice is to start showing retargeting ads within 24 hours of the user leaving your site, as this is when they are most likely to remember their initial interest.
However, if you wait too long, the chances of conversion decline. As a result, it’s important to experiment with different time intervals to find the sweet spot for your audience.
Use Frequency Capping
It’s essential not to overwhelm your audience with too many ads. Frequency capping allows you to limit how many times a user sees your ad in a given period. By using this feature, you can avoid annoying potential customers and ensure that your ads remain effective without becoming intrusive.
Offer Incentives
Incentives such as discounts, free shipping, or exclusive offers can be powerful motivators to encourage users to return and complete their purchase. For example, if a customer abandons their cart, you could show them a retargeting ad offering 10% off their next purchase to encourage them to complete their checkout.
Pro Tip: Offering a time limited discount in your retargeting ads can create a sense of urgency and increase conversions.
4. Maximising the Effectiveness of Retargeting Ads
To get the most out of your retargeting campaigns, consider the following tips to optimise your strategy:
Test Different Ad Formats
Retargeting ads come in various formats, including display ads, video ads, and social media ads. Experiment with different formats to see which ones perform best with your audience. For example, video ads might be more engaging for some users, while static image ads may work better for others.
Leverage Social Media Platforms
Retargeting isn’t just for search engines. Platforms like Facebook and Instagram allow you to retarget users who have visited your website or engaged with your social media profiles. Because these platforms are visual and highly engaging, retargeting ads here can lead to significant conversions.
Optimise for Mobile
Many users will view your retargeting ads on mobile devices, so ensure that your ads are optimised for mobile viewing. Make sure your ads are clear, concise, and easy to interact with on smaller screens.
Pro Tip: Retargeting ads on mobile devices tend to perform better when they are visually simple, with a clear call to action (CTA) and minimal text.
5. Why Retargeting Ads are Essential for Your eCommerce Business
Retargeting ads are an essential part of any successful eCommerce strategy. By reminding visitors about your products, you keep your brand top of mind and increase the likelihood of conversion. With the ability to segment your audience and tailor your messages, retargeting ads allow you to create highly personalised and effective campaigns that drive sales.
Need help creating a successful retargeting strategy?
Let Myk Baxter help you optimise your retargeting ads for maximum impact!
As a leading eCommerce expert at Myk Baxter Marketing, Myk Baxter has extensive experience in helping eCommerce businesses develop and execute highly effective retargeting ad campaigns. Whether you’re new to retargeting or looking to refine your current strategy, Myk and his team can help you achieve outstanding results.
Book a consultation today and start maximising your ROI with retargeting ads!
➢ Visit Myk Baxter Marketing to get started.
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