Ad Retargeting Explained

Customer segmentation models

What is retargeting? Many marketers are rallying behind a new tactic — one that is especially useful for small businesses — called ad retargeting. Website retargeting focuses on a big problem for small businesses: only 2% of first-time visitors actually buy something, Small Business Trends reports. The website continues, “Retargeting focuses on the 98% of visitors who left your website for reasons unknown.”

The Way It Works

Small Business Trends explains, “The advertiser’s website includes a piece of javascript code. That code sets a cookie in the visitor’s browser. When the visitor goes to other sites, the cookie ensures that the advertiser’s ads are displayed only to those who have previously visited the advertiser’s site.”

Although relatively simple, retargeting is one of the fastest growing customer segmentation models — and with good reason. Retargeting works without capturing sensitive and/or personal consumer data, and current ROI data suggests it is a worthwhile investment. reports “a whopping 1317% ROI (return on investment) from all conversions combined, a 1160% ROI in view-through conversions, and a 57% ROI from click-through conversions.”

Where To Next?

As with all internet marketing strategies, many businesses pose the important question, is there anywhere to go from here? In other words, is there potential for growth? The answer is yes. First and foremost, retargeting is a relatively new form of e-commerce marketing, and there are still kinks to work out. For example, many retailers offer consumers the option to opt out of retargeted ads. Currently opting out does not, however, does entail opting out of retargeted ads only. Typically, it will shut off all ads completely. There is plenty of potential for marketers to explore opting out of retargeted ads — or a single retargeted campaign — only. Facebook and Twitter have also recently announced initiatives to explore some form of retargeted advertising.

What is retargeting? Small businesses who don’t already know should familiarize themselves with the topic — and fast. Retargeting uses cookies to remind customers to return and hopefully to purchase something. Early campaigns have been widely successful, and even Facebook and Twitter are exploring options to cash in on the relatively new internet marketing phenomena. Continue your research here:

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