Why Your Company Should Be Using Display Retargeting
Five years ago, display advertising was considered a lost cause. Users were bombarded with untargeted banners across the web, and they simply screened them out of their conceptual radar. In the past two years to three years, however, we've been witnessing an impressive comeback. Display's portion of the online marketing pie has exploded. In fact, eMarketer predicts display will overtake search as the No. 1 online marketing channel by 2015.
One of the main "culprits" in the renaissance of display is personalized retargeting and the significant return on investment lift it generates.
Despite a proven track record, most advertisers have yet to leverage the power of personalized dynamic retargeting. After heavily investing in untargeted media to bring traffic to their websites, users browse their sites, leaving precious purchase intent data behind. All too often, however, this data is then abandoned.
Reconnecting with lost prospects to boost ROI. Many studies have shown that almost 98 percent of visitors to e-commerce sites end their session without completing a purchase. There's no reason, however, that they should be treated as lost prospects. Leveraging their purchase intent data to reconnect with them by showing them a personalized, relevant banner ad makes all the difference.
A small additional investment can generate a ROI of up to 30 times! (A 15 times lift is commonplace.) Buying additional retargeting media will slightly increase the overall cost per action, but will return the entire investment in a user and much more.
For retailers in the market for a certain product or service, personalized retargeting will ensure optimal brand presence (frequency and recency cappings are closely monitored). Consumers will see your brand and your message but, more importantly, they won't see your competitors. Isn't that valuable ROI on its own merit?
Proving incremental value. In an overcrowded display advertising ecosystem, all providers claim their solutions produce real benefit, but marketers are often at a loss. Some maintain that despite countless campaigns that prove the value of retargeting, allocating ad spend to users who have already demonstrated purchase intent is wasteful, claiming those users would end up buying without being exposed to retargeting banners.