For years now, Internet has
revealed to be an excellent distribution channel for companies to sell their
products or services, the nowadays-famous “e-commerce”. More and more marketplaces,
and commercial websites have been created and companies have found new ways to
attract people to buy, in digital marketing words: to realize a conversion;
this by collecting data on people online behavior. They use “cookies” to know how
consumers process during their online shopping and their global browsing
behavior on Internet: this is what we call the user path. With the services of
companies like Criteo or even Facebook, advertisers and publishers exploit the
retargeting advertisement to propose the right online advertisement to the
right person, at the right moment, in order to increase the conversion rate.
The
retargeting advertisement works with the user own agreement to have cookies collected
during their online navigation. This marketing tool generates data, which highlights
some typical behaviors from the Internet users:
- · “70% of users who are retargeted with display ads are more likely to convert/buy on your website.
- · Nearly 3/5 US online buyers said they notice ads for products they looked up on other websites.
- · Retargeting can lead to a 147% higher conversion rate over time in certain industries
- · In one comScore study, retargeted ads leds to a +1046% increase in branded search, a sign of heightened brand awareness and recall, and a +726% increase in the site visitation after four weeks of retargeted ad exposure
- · With retargeting, there is a +26% of users who return and complete the checkout process.”
First
of all, companies cannot target all online consumers; in fact, they have to
proceed by what we call a “cookie pool” to get a first segmentation of the
population they target. Thanks to this cookie pool companies can find consumers
who are engaged and have developed well-defined preferences of what they like
and how they navigate online. Companies need this segmentation to be able to
adapt their advertisement message as precisely as possible; they aim to make potential
customers buying the product, as fast as they would buy if they were in a
physical store. (Scheme below)
The
retargeting advertisement is mostly based on computer technology, but with the
emergence of mobile marketing, mobile apps or tablets, companies use
cross-device retargeting. This technique enables the company to propose
tailored advertisement to a consumer through over every connected screen he or
she uses. Companies also send email ads to consumers, which is a marketing tool
very common for retargeting advertisement, but less subtle than on a banner on
Facebook for example, and more intrusive. Another way of retargeting consumers,
mastered by Google is the search retargeting, Google Adwords illustrate
perfectly it; companies pay to appear on the top of the first search page on Google,
and therefore, if two individuals type in the same words on the Google search
engine, they will have different content proposed to them, based on the data
gathered on their online behavior.
However,
when doing retargeting, some good practices are needed. First, companies are advised
to be quality orientated rather than favor the quantity of ads they display.
Secondly, using cross-device retargeting is crucial not to lose the consumer if
he changes of device. The example of Facebook NewsFeed and Right Hand Banners show
that the consumer is now less attentive to the right banner than a newsfeed ad.
Indeed the newsfeed ad appears when the potential consumer puts his attention
reading his friends and fan pages’ news.
Retargeting
has not yet reached its full potential. In fact, “46% of search engine
marketing professionals believe retargeting is the most underused online
marketing technology”. However,
due to excessive quantity of online advertisement displayed to the consumer,
more and more internet users equipped themselves with adblockers when browsing,
which constitutes a major threat to online advertisement.
Sources:
http://www.webmarketing-com.com/2015/02/04/35227-tout-savoir-sur-le-retargeting
http://ebusiness.mit.edu/research/papers/2011.12_Lambrecht_Tucker_When%20Does%20Retargeting%20Work_311.pdf
thank you for your interesting infomation.
ReplyDeleterole of digital marketing