Did you know it takes 6 visits on average for customers to purchase online?
Did you also know that only 2% of shoppers convert on their first visit to an online store according to Adroll?
How do you think online shops get the other 98% of shoppers by making them visit the online stores for 6 times?
It’s by retargeting!
In a nutshell, it allows businesses to target customers based on their previous interaction with their website. It’s an effective marketing strategy, and we’ve got the latest retargeting statistics to prove it.
But before we dive in, let’s check out some…
Fascinating Retargeting Stats
- 92% of consumers who visit a website for the first time don’t intend to make a purchase.
- Only 2% of people who visit a website will convert to a sale or follow through with the desired action.
- ⅓ rd of consumers who intend to purchase end up not finalizing the deal.
- Retargeted ads are 76% more likely to get clicks, on Facebook, than normal ad campaigns.
Now let’s dig deep into some more stats and facts that can help your retargeting strategies
An interesting fact all online marketers need to be aware of is that 92% of consumers who visit a specific website, for the first time, will not do so with the intention of making a purchase but have rather landed there for other reasons, i.e. price comparisons, browsing for a product or service, looking for store details and so on. Further only 2% of those do go onto your website will convert to a sale or follow through with the desired action.
It is even more interesting to note that one third of consumers who do actually have the intention to purchase end up not finalising the deal.
Retargeting is an ideal and effective tool to combat these common occurrences.
General Retargeting Stats:
Here are some important numbers to think about when deciding whether you should adopt retargeting methods within your marketing strategy:
- It has been noted that 3 out of 5 consumers are likely to take note of retargeted ads.
- Retargeted ads are 76% more likely to get clicks, on Facebook, than normal ad campaigns.
- Average click through rate for retargeted ads is 0.7% as opposed to display ads which only yield 0.07%.
- Retargeting, implemented in conjunction with other channels, are 50% more likely to produce sales.
- Adobes Chief Marketing Officer has stated that the way retargeting influences website visitors has proven powerful in that it shows clear up rise, of 70%, in conversion rates, by adopting this marketing strategy.
- On top of the aforementioned there has been a 147% increase in conversion rates with those leads that have come in as a result of retargeting.
- One final number to keep in mind is that it has been found that 26% of prospective clients that have been exposed to retargeting return and complete the desired action on the relevant website.
- When directly compared to alternative strategies, retargeting revealed a 1046% increase in business name searches, which was the highest.
These statistics are a clear demonstration of the power retargeting has to reignite the interest in those otherwise lost consumers.
Retargeting Usage Statistics:
Did you know that 68% of marketing agencies now have a dedicated budget to adopt retargeting strategies as well as 49% of brands?
The retail industry has taken charge in adopting retargeting strategies with 27% implementing this marketing strategy. Industries which closely follow include; media (17%), tech (10%), healthcare (10%) and finance (9%), just to name a few.
A further important trend to take note of is that 50% of marketers have revealed that there will be an increase in their retargeting budget in the next 6 months. Interestingly 46% of marketers have stated that retargeting is the most underused online marketing technology despite its results.
When deciding whether to adopt a retargeting marketing strategy an important factor to take into account is that of reach. How many people will you be able to reach on the internet? Well it was stated that if your company uses Google Display Network to promote its retargeting ads, can reach up to 90% of people on the internet spread over 2 million websites.
From the above it is clear that retargeting must play some role in a consumers purchase decisions but let’s see how. Of consumers targeted by this marketing strategy 8.65% were reminded to revisit the site while 7.37% actually responded to the offer in the ad. It was found that 37.82% of consumers were actually dissuaded by the ads while the remaining 46.15% simply ignored the ad.
How Consumers React to the Retargeting Ads:
As previously mentioned 3 of 5 consumers take note of retargeted ads but that still doesn’t explain how they feel about them and therefore whether they are effective or not.
Well 25% of online viewers actually admitted to enjoying seeing the retargeted ads. Interestingly another study found that 47% of consumers agreed that they would give up their privacy in the hope of a better deal.
It is not just sunshine and roses though with 32% of consumers stating that this form of advertising is completely unacceptable.
In an alternative study 11% of consumers revealed negative emotions towards retargeting however 30% had a positive reaction. The remaining 59% revealed a neutral response.
How Marketers and Consumers Feel About Retargeting as a Marketing Strategy:
As previously mentioned consumers who are retargeted are 70% more likely to convert on the respective website. This is a great indicator as to why 50% of marketers have decided to up their retargeting budget in the next 6 months.
It has even been found that adopting a retargeting marketing strategy can result in an increased lead conversion rate by 147% in certain industries, when used in combination with other marketing strategies.
An even bigger number of interest, is that of a 726% uplift in site visitation after just 4 weeks of retargeted ad implementation.
Finally marketers noted a161% rise in conversion rate when implementing Google remarketing campaigns.
Average CTRs, Conversions, CPCs and CPMs:
The average CTR for retargeted consumers is 0.7%. This is 10 times higher than that of standard ads. Retargeted consumers are also 70% more likely to convert and it is possible to reach a rise in conversion rate of 147% dependant on your industry and implementation of the ad.
It was also found that retargeting can save you up to 44% of CPCs with average CPCs ranging from $0.50 – $1.25 per click.
CPM is an interesting one with a range of different costs dependant of geographical factors. It was found that in the United States the average CPM ranged between $10 – $25 whereas the average cost in South East Asia ranged between $1 – $2.
68% of marketing agencies now make use of retargeting strategies for conversions with 50% of them looking to increase their budget within 6 months.
It is also important to note here the most important needs marketers want to meet by adopting this retargeting strategy, namely; to acquire customers (56%), to build brand awareness (42%) and finally to gain a competitors customer (11%).
Types of Retargeting:
There are various types of retargeting strategies. The main ones being;
- Email Retargeting
- This type is adopted 26.1% of the time.
- This works by creating an email campaign where anyone who clicks on your email will now start seeing your ads. You can lists of specific email to target specific audiences and guide them to what would interest them most on their website.
- This is done by retargeting code into HTML or the signature of your emails.
- Site and Dynamic Retargeting
- This type is adopted most of the time at a rate of 87.9%.
- This is where a consumer has actually landed on your site and you track their next few browse searchers to plant perfectly timed personalised ads to re-attract the consumer.
- Search – RLSA
- This type is adopted 64.9% of the time.
- This works by live marketers, on a paid search engine, guiding consumers to the right page with a trail of ads based off of their searches.
- This is done by viewing who clicked on paid ads before and depending on searches you can retarget the consumers with more ads to lead them in the direction you need them to be heading.
- Video advertising is increasing by 40% annually with more than 80% of internet traffic being video orientated.
- This works when a consumer visits your site. You then track their behaviour at each level of shopping within you platform. When they then leave your site and start browsing you can place strategic video retargeting ads. These can be personalised to target the interests of the consumer to get them back onto your site.
This is done by making use of tracking pixels which allow you to track the consumers behaviour.
Retargeted versus Non Retargeted Customers Behaviour:
Firstly it is important to note that retargeted customers are 3 times more likely to click on an ad than a consumer that hasn’t visited your website before. Further it is important to reiterate that 26% of customers will return to a site as a result of retargeting. You can see how you can be losing out by not implementing a retargeting marketing strategy.
Retargeting Spending Statistics:
See below how much is spent weekly on retargeting depending on the number of unique visitors to your site;
- 3000 – 10000 visitors: $50 – $175 per week.
- 10000 – 20000 visitors: $175 – $450 per week.
- 25000 – 50000 visitors: $450 – $900 per week.
- 50000 – 100000 visitors: $900 – $1800 per week.
Retargeting by Device:
Mainly retargeting occurs with the desktop space and tablet space. The mobile space is a bit trickier to implement due to the fact that cookies are not allowed, 34% of businesses don’t have an app and 27% of businesses don’t have a mobile friendly site.
Although this proving to be a challenge Google is starting to implement cross-device retargeting which will combine information gathered throughout devices. These issues with mobile devices are essential to solve as there has been an increase in app installs by 35% and an overall retargeting reach increase of 33%.
Major Retargeting Challenges:
Just like anything in life retargeting is not perfect and it takes practice to perfect. Here are some of the major things to get a grasp on.
Firstly it has been found that when an ad is seen too frequently it actually acts as a deterrent and consumers are less likely to revisit your site. So be sparing in how frequently you use your ads.
Another mistake commonly made is reusing the same ad several times with the same consumer. No one wants to see the same thing again and again and if they were interested they would have clicked on it the first time. Change your ads up and change up customer responses.
The next mistake up for discussion is the debate; how long should use a cookie window? Most say 30 days on average, thereafter it’s time to put the cookie back in the jar if no one has taken a bite. This is however subjective and dependent on the industry you’re in and the consumer you are targeting. It is however important to note that if a consumer has not bought within 30 days they are highly unlikely to buy. Don’t spend money on leads that are not going to reap rewards.
Lastly don’t forget to create unique personalised ads to target exactly what your consumer is interested in. It is important to segment your ads here and place them appropriately to get the best results.