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Retargeting can be a powerful digital marketing tactic, allowing you to track your past website visitors wherever they go across the internet.
While you may be using other effective forms of online marketing, such as content marketing, paid search, or social media ads, retargeting is an important complementary strategy to these.
When all other strategies fail to make a customer out of your website visitors, retargeting gives you a second, third, and fourth chance to re-engage that prospective customer. The average website conversion rate in the eCommerce market is only 1.65%. With retargeting, you have the chance to bring back the remaining 98.35%.
If you’re involved with online advertising and still not convinced to implement retargeting, here are nine retargeting stats that will make you reconsider.g tactic, allowing you to track your past website visitors wherever they go across the internet.
While you may be using other effective forms of online marketing such as content marketing, paid search, or social media ads, retargeting is an important complementary strategy to these.
When all other strategies fail to make a customer out of your website visitors, it is retargeting that gives you a second, third, fourth chance to re-engage that prospective customer.
AdRoll said that in general, only 2% of shoppers convert on the first visit to an online store. The goal of retargeting is to bring back the other 98%.
If you’re involved with online advertising and still not convinced to implement retargeting, here are ten statistics that will make you reconsider.
Retargeting Statistics Worth Thinking About
Re-engaging potential customers who have already shown interest in your brand can significantly boost your conversion rates. Here are compelling retargeting and remarketing statistics that will make you rethink your marketing approach.
1. 69.82% of customers abandon their carts when they shop online. [Source: Big Commerce]
Cart abandonment is a prevalent challenge that eCommerce businesses face. Online customers may leave their carts for many reasons, from missing payment options to unexpected shipping fees.
Through strategically crafted retargeting ads or emails, businesses can remind these customers of the products they were interested in so they can proceed with checkout. You can offer small discounts, like a 5% off coupon, to incentivize them to return.
2. Cart abandonment is highest on mobile, averaging 69.02%. [Source: OptiMonk]
This statistic sheds light on another pivotal challenge that requires innovative solutions. A high abandonment rate underscores a relatively untapped conversion opportunity, specifically on mobile. Businesses should take advantage of their mobile user data by launching a retargeting campaign on mobile to recapture these lost leads and prospects.
Additionally, businesses can synergize their retargeting efforts by streamlining their checkout process and optimizing for mobile to minimize the frustrations that can cause cart abandonment.
3. 3 out of 4 online viewers now notice and consider retargeted ads. [Source: Invesp]
As today’s consumers are more tech-savvy than ever, they’ve found ways to block out irrelevant and distracting ads, whether through ad blockers or skipping ads as they show up. However, retargeting display ads are a different story, as they remind visitors of products and services they’ve shown interest in. Because of this existing connection, most consumers are more receptive to targeted ads.
4. 64% of consumers are at least somewhat willing to share personal information for more personalized and relevant services. [Source: Entrust]
A significant number of customers showcase a willingness to share personal information with apps in exchange for services and recommendations that resonate on a more personal level. This statistic shows a growing appetite for tailored experiences, meaning some consumers are more receptive of retargeted ads if it means getting a better shopping experience.
Marketers have an exciting avenue to establish deeper connections with their audiences. As you craft strategies, keep in mind this readiness to share, enabling you to curate offerings that balance customization and privacy.
5. Retargeted ads enjoy a 400% increase in engagement rates. [Source: Vibe.co]
Retargeted ads attract more engagement than regular display ads. The tailored nature of retargeting campaigns directly addresses users’ previous interests and interactions. This benefit increases engagement rates four times more than typical ads.
6. Retargeted ads increase brand search by 1046%. [Source: Connectio]
This statistic reveals the pivotal mechanism that transforms browsing into branded exploration. The engagement and reminders from retargeted ads guide consumers from generic searches and steer them to associate the product with your brand. For example, instead of searching “running shoes,” a retargeted customer will look for “[Company name] running shoes.”
This benefit improves your brand visibility significantly.
7. The click-through rate (CTR) of a retargeted ad is 10x higher than the CTR of a typical display ad. [Source: AdRoll]
The engagement advertisers can get from retargeting is significantly larger. While the average CTR for display ads is 0.07%, the average for retargeting ads is 0.7%. Retargeting campaigns perform ten times better than regular display banners and offer better opportunities to convert website visitors than traditional display advertising strategies.
8. Retargeted users are 70% more likely to convert. [Source: SharpSpring]
Prospects or potential customers usually browse numerous websites as part of their research. They consume various content to help them decide. Retargeting gives them that last little push toward your brand. When a prospect sees a retargeting ad, there’s also a 70% chance that they’ll purchase your product over your competitor’s.
9. Approximately 37% of consumers like retargeted ads because of their genuine interest in the featured product. [Source: Vibe.co]
According to survey respondents, retargeting conversion rates are so high because of its ability to tap into personalized data and past user interactions. Unlike acquisition ads, there’s existing data to draw from, which allows retargeting campaigns to deliver tailored messages promoting items the users have shown interest in previously.
This focused approach increases ad relevance and enhances the overall user experience, making retargeted ads more likely to resonate with potential customers.
10. The average marketing budget for business-to-consumer (B2C) businesses is 15.7%, while it’s around half (7.8%) for business-to-business (B2B) sellers. [Source: HubSpot]
B2B businesses allocate around half of what B2C companies do for marketing. This statistic indicates that B2B businesses may tend to undervalue the potential benefits of retargeting campaigns as they prioritize other marketing channels or strategies instead.
However, this discrepancy also highlights an opportunity for B2B companies to reevaluate their marketing approach and consider investing more in retargeting. As mentioned, retargeting is ideal for nurturing leads and building brand awareness – two crucial avenues for growth for B2B businesses.
11. The majority of B2C businesses use retargeted ads for customer retention, while B2Bs use them for brand awareness. [Source: SharpSpring]
Besides driving sales, businesses recognize the multifaceted advantages of retargeted ads in their advertising strategies. For B2C businesses, two-thirds prioritize customer retention by leveraging familiarity and a personalized approach.
On the other hand, over half of B2B businesses use retargeting as a powerful tool for brand awareness. They ensure their products or services remain top-of-mind for potential clients during the decision-making process.
12. 88% of marketers are using or planning on using AI to optimize their programs. [Source: SharpSpring]
The surge in AI adoption has fostered a collective drive within the industry to enhance and refine marketing programs. Artificial intelligence lets marketers optimize campaigns, delve into data-driven insights, and craft more personalized, impactful customer experiences.
With deeper insights into data, remarketers can target their advertisements more precisely than ever before – boosting the effect of this already effective marketing strategy.
13. Retargeted search ads have higher conversion rates than display ads, but they’re also more expensive. [Source: Wordstream]
The higher overall conversion rates are due to the fact that search ads are much better at indicating buyer intent than display ads. This is because they’re actually based on the keywords used in the search query. These remarketed ads convert so well because browsing history is a really good indicator for future commercial activities.
These higher conversion rates naturally make search ads more expensive than their display counterparts. In highly-competitive industries, search ad clicks can cost several dollars or more each. Display and social remarketing ads on the contrary, might cost anywhere from 2-100x less.
14. 91% of marketers who have used retargeting have found it to perform the same as or better than search, email, or other display ads. [Source: IAB]
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.
Marketers vouch for the effectiveness of retargeting ads, and numerous case experiences have shown the high probability of conversion.
15. Compared to other placement strategies, retargeting generated the highest lift in business name searches by 1,046%. [Source: PR Newswire]
The stat is part of the results of a comScore study analyzing 103 campaigns from 39 different advertisers covering 7 industries. Retargeting was the most effective ad placement strategy compared to audience targeting (514%), contextual targeting (130%), efficiency pricing (100%), premium pricing (300%), or Run-of-Network (RON) (126%).
This empirical evidence validates the effectiveness and efficiency of retargeting ads towards increasing conversion rates and overall profit. However, for marketers to continue benefiting from this powerful strategy, it must be implemented responsibly and consider the privacy and security of consumers.
16. 68% of marketing agencies and 49% of brands have a dedicated budget for retargeting. [Source: Chango]
When almost seven in ten agencies and close to one in two brands are allocating budgets for a particular marketing strategy, you just know that it is effective. This is a sign of growth in spending for retargeting as well, considering that in 2013, only 20% marketers had a dedicated retargeting budget.
But, as mobile devices and digital technologies have already become a critical part of people’s day-to-day lives, marketers can no longer ignore the effectivity of retargeting. As such, more businesses and brands are turning to the strategy to increase sales and profit.
17. 70% of marketers turn to search retargeting primarily to increase brand awareness. [Source: IAB]
According to a survey of 1000 marketing professionals, social engagement (62%) and driving sales (58%) are important goals, but increasing brand awareness at 70% is the number one retargeting objective for both B2B and B2C brands.
18. 47% of consumers say that they would sacrifice privacy to get a better deal. [Source: Pew Research Center]
A study by Pew Research Center found that nearly half (47%) of their respondents, who were American consumers, say that the basic bargain offered by retail loyalty cards – tracking purchases in exchange for occasional discounts – is acceptable to them, while a third (32%) say it’s unacceptable.
This is a clear indicator that the whole “creep factor” involved with being tracked online is highly over-exaggerated. As long as there’s a clear benefit to the consumer, most won’t have any issues with having their relevant online behavior tracked.
19. 30% of consumers have a positive or very positive reaction to retargeted ads, while only 11% feel negatively about them. [Source: eMarketer]
Be at ease, marketers. More consumers feel positively than negatively towards retargeting ads. 30% are positive about retargeting ads, while only 11% feel negatively about them. The rest (59%) had a neutral reaction. Whatever their reaction may be, the chance of them converting into an actual customer is still high.
Furthermore, as consumers become used to this form of personalized marketing, they’ll understand that it will benefit them in the long run. It can help them while shopping around the internet, as it provides suggestions for products or services they may have overlooked in the process.
20. While retail remains at the top of the verticals that use retargeting at 27%, other industries are increasing the incorporation of this strategy. [Source: IAB]
Retargeting essentially began in retail, which explains why the majority of the verticals that use the tactic still comes from e-commerce websites and retail brands.
However, a study by the IAB has shown that retargeting is no longer just a tool for online shopping sites, as organizations in various industries like media (17%), tech (10%), healthcare (10%), finance (9%), education/government (8%), travel (5%), and agencies (4%) are now using this marketing strategy.
Go Forth and Retarget!
With these statistics on how effective retargeting can be, it’s clear that this marketing tactic is an excellent way to nurture customer interest, increase brand awareness, drive traffic back to your website, and ultimately, convert those website visitors.
If you’re not part of the 49% that are actively dedicating part of their marketing budgets to retargeting, you could be missing out on a ton more conversions!
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