What is Retargeting?
Retargeting, also known as remarketing, is the strategy of directly advertising to users who have shown interest in a product, application, or other conversion, but who have in some way lapsed from completing the conversion or retaining interest.
For an example, a user may have expressed interest in a product, or has either installed or already used an app, but at some stage may have stopped either purchasing or using the app. Retargeting goes after those users with specific offers and promotional tactics to interest users with something new, in order to persuade them to fulfill the purchase or use the application again.
Why is Retargeting Important?
There’s a lot of debate about user acquisition versus retargeting, which usually come down to lifetime value. The question becomes (for apps, at least) why spend money on driving new users when you could spend the same (or much less) on those users who have already downloaded but haven’t returned after the first or second day? While a balanced approach works best, the efficacy of re-marketing can’t be ignored. It’s a successful tactic used by thousands of marketers every day, as it targets near-organic users, with messages centered on the next stage of the process.
It’s important to remember that while interest may not guarantee conversions, retargeting does help to keep your brand top-of-mind, prompting users to get to the point of conversion when they’re already very close.
What Are Some Use Cases for Retargeting?
- Inactive users: New ads remind users of their already installed application. This aims to boost engagement and retention.
- Upselling: Users are shown the benefits of upgrading their membership (if possible), as well as new apps, or updates.
- Heavy shoppers: With new ads, you can drive repeat conversions, as well as promote new products that may interest your spend-heavy users.
- Completing conversions: Whether a user’s cart is full, or they haven’t completed a registration event, remarketing can help fulfill purchases, or move on to the next stage.
- Testing: Test creatives on different cohorts to see how they perform.
Reference: “Adjust,” Retrieved – 23 April 2018