Retargeting - Effective ROI or Threat to Online Privacy?
Are you being followed online by that shiny new HDTV you recently researched online? Have you recently felt the urge to purchase those pants you added to your online shopping cart? And how do those Zappos ads magically display your size and favorite style of running shoes?
The answer is more logic than magic! Advertisers call it Ad Retargeting. The rising prevalence of these campaigns has many consumer and industry experts asking whether retargeting is effective or another threat to online privacy!
Why Retargeting? It’s a simple evolution of cause and effect...advertisers respond to the behavior of their customers.
Consider the facts:
- More than 90 percent of website visitors leave before converting or completing an advertiser’s desired action.
- Research has shown that it can take at least seven follow-up emails or phone calls with prospective customers to convert them to a sale.
- Marketers are being held accountable to ROI and must find some way to recapture those visitors that do not convert during an initial website visit.
For more on how these retargeting ads work, go here.
At WebsiteBiz, we consider the following factors when evaluating retargeting opportunities:
- Frequency Caps: Careful monitoring and management of the frequency of retargeting ads ensure that potential customers are not overwhelmed with messaging beyond the timeframe of their buying decision. Perhaps the customer has made an alternative purchase or abandoned their decision altogether.
- Over-personalization: Dynamic, personalized creative ads and messaging can make risky assumptions and potentially return false-positive ROI. For example, retargeting based on the last product viewed may reinforce a product that produced a negative reaction causing the visitor to exit your site. Other times, retargeting with products that shoppers browse simply out of curiosity or research will lead to irrelevant targeting. (Just because I view the newest Porsche online doesn’t mean I’m ready to buy.)
- Control: Give people as much control over the experience as possible so they can tailor it to their own personal preferences. (Zappos retargeting ads include a link that says "Why am I seeing these ads? Learn more"). Google explains their commitment to privacy and even gives consumers the option to control their ad preferences here (you can even Opt-out).
What do you think? Is Retargeting effective or just plain creepy?
Comments
Excellent information and a great summary of how WebsiteBiz approaches retargeting ...
Great insights on retargeting. Interesting that Google lets you opt out of retargeting messages.
This space seems to be red hot with ShareThis getting in on the action with a neat retargeting twist, and Fetchback just being acquired last week.
Where do you think this space is headed? Where will retargeting be in 3 years?
Thx for the insight. I was researching the privacy experience for targetted user. This is the first post I found on this. It did confirm my initial thoughts and current way of working.
[...] There have been mixed reviews about whether this marketing tactic is too personal or not. I don’t believe that there is anything wrong with this type of marketing. Companies are simply utilizing a technology that has been around for quite some time. Companies are not taking personal information such as credit card information, home address, or birth date. They are simply recognizing consumer interests in order to not only increase their own sales, but to make the consumer’s browsing experience more enjoyable. Companies are even taking steps to ensure that these ads do not become invasive. (Retargeting – Effective ROI or Threat to Online Privacy) [...]
[...] instances where I would feel retargeting ads to be a privacy invasion are when it gives other users an idea of what products/services you have [...]