Here’s How Ecommerce Remarketing Supercharges Your ROI
Remarketing is a common term in ecommerce. Explained simply, remarketing is the process of using integrated advertising services (such as Google Ads, Bing Ads or third-party services like Ad Roll) to reengage with previous visitors of your website as they browse across other sites. Research finds that this type of advertising has a strong click-through ratio and a higher conversion value than other forms, with advertising spend on the lower side.
How does ecommerce remarketing help improve your return on investment as an online retailer? Read on to learn more.
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What is Ecommerce Remarketing?
To better understand how this marketing method helps you improve your bottom line, it’s important to understand how website browsers work. When users visit your website, their browser caches some of the data from that visit using something that’s called a “cookie.” If your website is using a remarketing service, this data helps serve ads to that user after they leave your website.
A good example of remarketing in ecommerce can be explained as follows.
- A visitor comes to your website.
- The browser caches a cookie for retargeting.
- The user bounces away from your website.
- The user goes to another popular site that has an agreement with the remarketing service.
- The user is then displayed ads for your online store at that new destination.
- You only pay for these ads if the user clicks through to your online store from the ad.
- The ads, clicks and impressions are all tracked by the service provider for your review.
- You can use conversion tracking to monitor spend versus return to optimize your campaign.
- Remarketing services currently can display ads on more than 1 million websites and counting.
What Types of Services Offering Retargeting?
A wide variety of services offer retargeting/remarketing for ecommerce merchants. All these services share a performance model to remain competitive. As explained above, you’re only going to pay when a user clicks on the ad and returns to your online store. The impressions, or views, that your ad gets are just an added perk that costs you nothing but gives you lots of exposure.
A few of the most popular retargeting services include:
- Google Ads
- Bing Ads
- Ad Roll
Current 2020 Retargeting Statistics
To better help you understand just how effective this remarketing method is for ecommerce, here are the most recent retargeting statistics for 2020 that show it’s a winning addition to any digital marketing plan.
- Retargeting dwarfs display and text ads with a 100% better return on investment and a 0.7% CTR.
- Shoppers convert about 27% of the time when they click on a retargeted ad to return to an abandoned purchase.
- Retargeting ads are viewed favorably by 30% of all users, with more than 60% having neutral feelings about them.
- The average ecommerce bounce rate is about 66%, which is why retargeting is very important.
- About 26% of consumers don’t mind these types of ads because they are reminders of products, services and brands they know and use.
- The highest retargeting click-through ratio is found in email retargeting, which peaks at 5%.
- Almost half of all brands have a digital remarketing strategy in place.
- More than 90% of online marketers report strong returns from ecommerce remarketing.
- Retargeting ads are the most effective and get nearly 77% more clicks than other ads.
- There’s a 70% chance that retargeted visitors will convert when they come back to your website.
- Branded search improves more than 1,000% with retargeting in place.
- The most popular type of retargeting ads are social media (54%).
- Google’s remarketing service boasts a 161% conversion rate (the highest there is).
- More than 90% of visitors are just browsing; retargeting helps close the deal and get them back.
- Google has the widest remarketing reach, covering 92% of the online world.
- Mobile retargeting has an astounding 51% conversion rate.
- About 30% of digital marketers incorporate remarketing as part of their game plan.
Need Even More Tips?
We’ve got you covered with this awesome infographic we’ve created that helps you better understand how retargeting works and why it’s a must-have addition to any ecommerce digital marketing campaign.