Retargeting Ads: Because Everyone Deserves a Second Chance

Life is full of second chances and retargeting ads are just one example of that.

Only a tiny fraction of online shoppers - about 2% to be exact - complete a transaction during their first visit to a commercial website. Retargeting, also known as "remarketing," is a type of advertising technology that tracks a web user's internet behavior and then targets them with custom ads relevant to their browsing history.

In other words, retargeting ads give the other 98% a second chance.

How Does Retargeting Work?

Retargeting ads function with the help of "cookies." A cookie is a tiny text file that a website places on your computer's hard drive when you make your first visit to the site.

Let's say you visit an online retailer that sells shoes. A cookie is placed on your computer that tracks everything you look at on the website. Which shoes or accessories did you view? What ads did you click on? The cookie builds a profile of you and your interests.

The website then develops a retargeting ad based on your profile that will pop up on your screen no matter where else you go on the web. So the next day when you're reading up on the news or checking your email, an ad will surface featuring that pair of Reeboks you were eyeing up earlier.

Does Retargeting Work?

As a matter of fact, yes. According to Digital Information World:

  • Web site visitors are 70% more likely to convert a transaction on a website after being retargeted.
  • Online shoppers that abandon their carts before purchasing only come back to complete the transaction 8% of the time without any retargeting but do so 26% of the time with retargeting.
  • The average click-through rate of a retargeted ad is 10 times more than that of a non-targeted display ad.

You might think retargeting would feel invasive and not be very well received. But in fact, seven out of 10 people report being comfortable with content tailored to their specific interests.

After all, we all love to have second chances.

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