These retargeting statistics tell why it is such a crucial digital marketing technique Share via

Retargeting is a marketing technique through which brands show ads to users who have earlier visited their website or mobile app, engaged with their products and services but left without completing a transaction. The benefit of retargeting is that it effectively targets users who have already shown some interest in the brand, making it easier to convert them. In addition, it is a cost-effective tactic that can be done using Google, Microsoft, social media platforms like Facebook and Instagram, or through email, SMS, and WhatsApp. As a result, marketers have been using retargeting tactics to improve the efficiency of their marketing campaigns.

Some notable benefits of retargeting are increased conversion rate, reduced cart abandonment, increased brand awareness, and the technique’s cost-effectiveness. But it also comes with its challenges. With the retargeting approach, brands can either stay at the top of the mind of their audience or infuriate them with a barrage of display ads. It is for the marketers and the brands to decide how they want to use their retargeting campaigns. Brands should be mindful that the consumer comes across thousands of ads online during the day, most of them don’t even register, and some leave a terrible taste. And brands don’t want their retargeting efforts to go in vain. So they should focus on the context of their ads, set a cap on retargeting frequency, provide users the option to opt-out of retargeted ads, and finally, do not retarget the consumer when they have already purchased the product.

In this blog, we will discuss some of the statistics about retargeting and how it improves the overall efficiency of a marketing campaign alone and sometimes paired with other marketing tools.

Top Retargeting Statistics

97% of people who visit your website for the first time leave without buying anything, and then they are lost forever: This piece of statistics from MailChimp is mind-boggling, but with the correct retargeting approach, brands can get some of these otherwise lost users to come back and convert. For the user to become your customer, they need to know your brand well. And retargeting does just that by building visibility for your brand and allowing it to reach your potential audience most efficiently.

The average click-through rate (CTR) of a retargeted ad is 10X of regular display ads: According to Wishpond research, the average CTR for display ads is around 0.07%, while for a retargeted ad, it jumps to 0.7%. This shows that retargeting ads work ten times better than regular display ads because the brands only retarget shoppers who have shown some level of interest in their products. And hence, the conversion rate improves.

Retargeting can reduce cart abandonment by 6.5%: According to research reports, retargeted ads can send 26 percent of shoppers back to the company’s website and reduce the cart abandonment rate by 6.5%. The average cart abandonment rate across all industries is nearly 70 percent, even worse in e-commerce. Brands lose an enormous amount of money when the consumers opt out just before completing the transaction because of various reasons. To not lose those consumers forever, brands can retarget them, informing them about their abandoned cart, driving them to complete the purchase, and turning them into customers.

Over 90% of marketers who have used retargeting found it the same or better than search, email, or other display ads: Out of 1000 marketers surveyed by the Interactive Advertising Bureau (IAB), 92% found retargeting to perform the same as or better than search, 91% for email, and 92% for other display advertising.

While there is no denying that retargeting is an essential digital marketing and advertising tool that significantly improves the brand’s marketing outreach, if done mindlessly, it can negatively impact your image and massively reduce the impact of your campaigns. ReEngage, the remarketing platform of ArabyAds, helps brands in the MENA region to sell more with a customized strategy for each stage of their customer journey with customer creatives. As a result, clients have seen around a 30 percent increase in conversion rates using advanced audience insights with ReEngage.