What Is Remarketing and Why Is It Important in Digital Advertising?

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What Is Remarketing and Why Is It Important in Digital Advertising?

We Answer:

Remarketing Campaigns Have ‘Those Most Likely to Buy’ Coming Back to Your Website to Drive the Highest Conversion Rates

Remarketing is a transformative strategy that many businesses underestimate or misunderstand. This approach aims to re-engage users who have previously interacted with your brand but did not take action, such as making an inquiry. By staying connected with these potential customers, you can present tailored messages that encourage them to revisit your offerings and take the next step.

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What is Remarketing?

The Benefits of Remarketing

Why It’s Underused

Best Practices for Remarketing

Case Study

What is Remarketing?

Remarketing, often known as retargeting, focuses on re-engaging users who have previously interacted with your brand but did not complete a specific action, such as making a purchase or subscribing to a newsletter. By employing refined targeting techniques, you can deliver custom ads to these users as they browse other websites or social media platforms, ensuring that your brand stays top of mind.

The Benefits of Remarketing:

Increased Conversion Rates: Since the audience you are retargeting is already familiar with your products or services, delivering targeted ads that remind them of their previous interactions can effectively encourage them to take action on your website, whether through contact submissions, purchases, or inquiries. This approach ultimately leads to increased conversion rates, as these users are more likely to engage with your brand again.

Cost-Effective Advertising: Instead of casting a wide net to attract new leads, remarketing enables you to allocate your budget to users who have previously engaged with your brand. This targeted strategy typically delivers a higher return on investment than broader advertising campaigns, as it focuses on an audience that is already interested and more likely to convert.

Enhanced Personalisation: Remarketing allows you to leverage custom ads based on user behaviour or intent. For example, if a user visited your product page but didn’t complete a purchase, you can display ads featuring that specific product, possibly with an appealing discount. This level of personalisation significantly increases the chances of re-engaging your audience.

Why It’s Underused

Despite its advantages, remarketing is often underused due to misconceptions about its complexity. Many businesses believe that remarketing is complex to set up or manage and that it’s only effective for larger companies with extensive budgets and customer bases. In reality, even small businesses can reap significant benefits from targeted remarketing, as these strategies are accessible and can be customised to fit any budget.

Best Practices for Remarketing

Segment Your Audience: Not all visitors are the same, and audience segmentation is essential for effective remarketing. By segmenting your audience based on factors such as interests, age, demographics, and location, you can create more relevant and impactful ad campaigns. Leveraging this data provides valuable insights that enhance targeting and improve overall performance.

Create Compelling Ad Content: Your remarketing ads should be engaging and relevant, with a clear message and value proposition that effectively communicates how your offerings meet the audience’s needs or solve specific problems. Compelling content not only captures attention but also builds trust, motivating users to take action and ultimately driving higher conversion rates for your campaigns.

Frequency Capping: Avoid overwhelming users with excessive ads; instead, focus on delivering the right messaging, even if it means running fewer or simpler ads and reducing their frequency. As a business owner, this approach helps maintain user engagement without causing ad fatigue, ultimately leading to improved brand perception and higher conversion rates.

Monitor and Optimise for success: Regularly review your remarketing campaign performance and make adjustments as needed. Track the metrics that align with your marketing goals and objectives. If your goal is to increase form submissions, prioritise those metrics. Identify what’s working and where improvements can be made. Remember, marketing is all about testing and refining your approach to achieve better results.

Case Study

Golstruct Homes saw a 38% increase in website enquiries

By leveraging custom remarketing audiences and dynamic ads across the Google Display Network, we were able to drive significant improvements in Golstruct Homes’ marketing performance. They saw a significant increase in click-through rates (CTR), more enquiries, and a lower cost per lead. This targeted approach helped re-engage potential customers and improve overall campaign performance.

By the numbers:
57% Increase in conversions
44% Decrease in cost per lead
40% Increase in clickthrough rate

What they had to say:
“The team at NZD have been a pleasure to deal with. We appreciate the care, insight and ongoing advice to grow our website audience and refine the user experience.”

Conclusion

Remarketing is a powerful strategy that can boost your overall marketing efforts, enhance conversion rates, and deliver a higher return on your advertising investment. If you’re not currently incorporating remarketing into your strategy, now is the time to explore its potential.