An introduction to retargeting
Written by Adrienne Erin
Think about your website traffic and analytics reports. Chances are that, barring any outside marketing, your conversion rates fall around the national average for first-time visitors of 2 or 3 percent. Looking at that average, the number might seem okay, perhaps acceptable; but, take the time to examine that figure. On a first visit, 98 percent of customers leave without making a purchase.
Retargeting changes this and puts the control back into the hands of the companies that utilize the practice. Keep reading for more information on retargeting, its success rates and how it works.
What it is
Retargeting is an advertising tactic that serves ads to visitors who leave a particular site when to visit other sites. While other forms of retargeting exist — search retargeting, email retargeting, CRM retargeting and more — site-based retargeting is the most common.
After a visitor leaves a certain site, they’ll see ads for products on the original site around the web — on social media sites, search engines and any other site on which the original site advertises. The goal? Bring users back to complete a transaction by regaining their interest.
How it works
Later, when another site is accessed for which the cookie’s code was written, the cookie is reactivated, alerting the original site to the visitor’s presence on the other site — Facebook, Twitter or Google, for example. This gives the original site the opportunity to bid on a space automatically through controls that have been reestablished while taking only a small fraction of a second to display specific ads to that visitor.
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As mentioned above, a first-time web visitor has a 2 percent chance of converting during that visit. Just as interesting is the fact that 72 percent of online shoppers abandon full shopping carts. Left alone, only 8 percent of those shoppers return to complete their transactions; with retargeting, the percentage jumps to 26. The key to bringing them back? Regaining interest.
In a recent study by eMarketer, three out of five survey respondents claimed to notice ads on other sites for products they’ve previously browsed or searched for. The interest is there, waiting to be piqued.
Taken one step further, companies who engage in retargeting have a 147 percent conversion rate on average in certain industries than those who do not with engagement rates 2.5 to 3 times higher than their competitors who use traditional advertising. According to Software Advice, website visitors who return through a retargeted ad are 70 percent more likely to convert.
The numbers are clear: retargeting is an effective, affordable method for raising conversion rates and increasing online sales.
B2B and B2C retargeting
While retargeting started as a primarily business-to-consumer practice, it’s now applicable for business-to-business operations as well. Put simply, all businesses can increase their conversion rates by way of retargeting.
Take Empire CATas an example of a B2B company that could utilize site-based retargeting. Because the company sells heavy-duty equipment to other businesses, it has no need to retarget consumers; they’re looking for businesses. By taking the time to retarget on professional, industry-related sites, Empire CAT will be more likely to attract its target customer — business owners — and to increase its online success.
Custom Car Covers, on the other hand, is a B2C company that markets car covers to consumers. Its target audience would be more likely to be found on social networks and search engines. By creating custom ads based on the products specific customers have viewed, Custom Car Covers will see higher conversion rates by bringing returning customers back to complete transactions.
For B2B and B2C companies, the common trend in retargeting is raising interest where it already exists, demonstrated by previous site visits.
The safety factor
With concerns over privacy at an all-time high, some advertisers are reluctant to use information that users perceive as private to market to them. It’s understandable; however, retargeting is a safe wayto use user data.
Because of the fact that cookies store non-identifying information, including browser information, the date and time of specific website visits and local time zones in addition to other information, nothing personal about the user is retained by the advertiser. This maintains anonymity while giving an edge to the marketer; it’s a win-win situation.
Furthermore, advertisers have complete control, unlike other forms of marketing. A company can control how many times a specific visitor is exposed to an ad, the time frame in which that ad is used and other areas of the practice to ensure ads are displayed in a natural, non-intrusive way.
For companies looking to gain an edge in the online space, while increasing conversion rates across the board, retargeting should be taken into serious consideration. The practice is safe, proven effective and affordable for companies in all industries and of all sizes. Consider retargeting for your next advertising campaign.
Rainmaking + ESG Launch Supply Chain Resilience Accelerator
Rainmaking, one of the world’s leading corporate innovation and venture development firms that create, accelerate and scale new business, has partnered with Enterprise Singapore (ESG), a government agency that champions enterprise development, to launch Singapore’s first ‘Supply Chain Resilience Accelerator’.
The new programme will unite startups and enterprises to boost scalable technology solutions that help fuel supply chain resilience by addressing pain points in transport and logistics.
Over the last 13 years, Rainmaking has launched 30 ventures totalling US$2bn, including Startupbootcamp. Having invested in over 900 startups that have raised more than US$1bn, Startupbootcamp is one of the world’s most active global investors and accelerators.
The new programme looks to help build more resilient supply chains for Singapore’s burgeoning network of startups by leveraging its advantageous position as a global trade and connectivity hub. As part of the Supply Chain Resilience Accelerator programme, no less than 20 startups with high-growth potential will have the opportunity to become a part of Singapore’s vibrant ecosystem of startups.
Calling Supply Chain Solution Startups!
The programme will kick off with an open call for startups who specialise in supply chain solutions for end-to-end visibility, analytics, automation and sustainability.
Applicants will then be shortlisted and receive nurturing from Rainmaking, fostering valuable engagements with corporates to drive scalable pilots with the aim to stimulate investment opportunities.
“Covid-19 exposed the fragility of global trade, and the Supply Chain Resilience Accelerator is our opportunity to spot weak links and build back better. Piloting outside tech can be an incredibly efficient way to test viable solutions to big problems, provided you de-risk and design for scale. Our programme does precisely this by helping corporate decision-makers and startups to work on compelling business opportunities, anticipate operational risks, and ultimately co-create solutions fit for wider industry adoption,” said Angela Noronha, Director for Open Innovation at Rainmaking.
Pilots will run from Singapore, with the objective that relevant organisations may adopt successful solutions globally. To that end, Rainmaking is currently engaging with enterprises specialising in varying industry verticals and have expressed interest in partnering.
“Even as we continue to work with startups and corporations all over the globe, we are so pleased to be anchoring this program out of Singapore. With a perfect storm of tech talent, corporate innovators, and robust institutional support, it’s the ideal launchpad for testing new solutions that have the potential to change entire industries. We look forward to driving the transformation with the ecosystem,” added Angela Noronha.
One of the first selected corporate partners is Cargill, a leader in innovating and decarbonising food supply chains.
"Cargill is constantly exploring ways to improve the way we work and service our customers. Sustainability, smart manufacturing and supply chain optimisation are key areas of focus for us; exploring these from Singapore, where so many key players are already innovating, will help us form valuable partnerships from day one. We look forward to joining Rainmaking and ESG on this journey to work with, support, and grow the startup community by keeping them connected to industry needs,” said Dirk Robers, Cargill Digital Labs.
In order to raise awareness on the importance of building resilience and how technology can be leveraged to mitigate risks of disruption, industry outreach efforts will include fireside chats, discussions and demo days.
In July, Rainmaking will host a virtual insight sharing event for innovation partners as well as a ‘Deal Friday’ session that connects businesses, investors, and selected startups with investment and partnership opportunities.
Programme events will also benefit Institutes of Higher Learning by offering exposure to how advanced practitioners leverage new technologies to transform traditional supply chain management and share real-world case studies and lessons learned, better equipping next-gen supply chain leaders.
“As an advocate of market-oriented open innovation, we welcome programmes like the Supply Chain Resilience Accelerator, which aims to help companies resolve operational pain points, strengthen supply chain resilience and spur growth in a post-pandemic world. With a strong track record in driving open innovation initiatives for the transport and supply chain industry, we believe that Rainmaking’s in-depth knowledge of the ecosystem and network of global partners can complement Singapore’s efforts in accelerating our business community’s adoption of tech-enabled tools, to better manage future disruptions and capture opportunities arising from shifts in global supply chains. This will in turn help to strengthen our local ecosystem and Singapore’s status as a global hub for trade and connectivity,” said Law Chung Ming, Executive Director for Transport and Logistics, Enterprise Singapore.