Ad retargeting is an e-commerce strategy that you should keep on the top of your head. It is a major traffic growth leverage among transactional E-commerce websites strategies. Not only traffic, it also increases dramatically the conversion rate. It consists in sending the most relevant ads to the right internet users depending on whether he has visited the merchant website and shown interest on a certain type of product.
Retargeting is a good way to catch up with a prospect who left your website without buying anything. The retargeting company identifies the visitor and collects clues on who he is, and what he is looking for. This information has a high added value to the retargeting company. It sends advert inserts on the prospect screen. The insert may appear on every visited website the retargeting company works with. The aim is to encourage the purchase on the first e-shop the prospect visited, while he visits some other websites.
This system stems from this assessment : in front of identical offers, prospects would rather buy on the website that came to him with the product details. In this strategy, even more so on the internet, timing is essential because, while on one hand, the purchasing process can easily be postponed or cancelled; on the other, clients only need seconds to buy an item. The tricky part is to send inserts of the relevent advert at the right time. Desire time according to the AIDA model.
Cookies make the collection of individual data possible. Then, data is processed through algorithms that will suggest the proper banner at a fitting time. Retargeting shows great results on conversion rate, and revenues. The main benefit is that it generates qualified trafic on the merchant website. It is an efficient promotion tool that eases cross selling strategy. Also it helps with clients’ loyalty. More over, it runs data crunching by itself. The main downside is that we (the bulk of internet user) don’t understand how it works.
Retargeting is by definition, an externalized activity because algorithms are complex. Display banners is not the only way to send adverts. Some retargeting companies make good use of SMS, MMS, mailing, phone calls and e-mailing, which is a challenging job. In France, the main retargeting company is Criteo. It succeeded in its international conquest. Aggregate Knowledge and ChoiceStream share the american market. Criteo processes the astonishing quantity of data collected in several countries in order to optimize retargeting campaigns for its clients. The more data it gets, the sharper the algorithms are. Criteo applies CPC rates, witch means that the merchant pays every time an internet user clicks on his banner. That way, the website owner stays in control of the bill, paying only when he gets more traffic. Criteo also applies CPM rate (cost per mil) which means that the merchant pays from 3$ to 45$ each time the banner is clicked 1000 times.
In a nutshell, Retargeting is a powerful strategy for professional online sellers, even if it is difficult to understand the way retargeters process data. It is an efficient way for e-commerce websites to increase their revenue, without however getting more prospects, but stimulating quality prospect to become clients.
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