Does Retargeting Really Work? – How many times have you been given a digital marketing strategy and send cuts in your budget to dedicate funds to retargeting? It’s a service many business owners are introduced to but rarely is it’s value explained.
You wanted to spend $5,000 on Facebook but you see your marketing team spent $4,000 on running your ads and $1,000 on retargeting. You also notice that the cost for these additional ads may be a little more expensive. So, why is this service being forced on you and is it really important?
The fact, not a theory, is that retargeting is the top digital marketing service when it comes to conversions. Compared to every other option, there really is no comparison. Your cost per lead is ridiculously cheaper than even the best lead generation platforms and you’d be surprised by how much. On average, companies who invest at least 20% of their marketing budget to retargeting will see an increase in conversions of up to 10%.
Does Retargeting Really Work?
So, if it’s that much of a difference why don’t more companies require campaigns to utilize the service? It comes down to the cost per click and overall budget. If your average cost per click is high and your budget is low, dedicating a percentage to retargeting won’t work. Retargeting works by displaying ads to consumers who have already visited your site. This improves awareness of your brand and gives you an additional opportunity to offer your current promotion or even a new one to consumers.
Another rule with the service is that it works best if you’re generating quality traffic. You cannot expect retargeting to generate results if the traffic you’re gaining is cheap and has a high bounce rate. The better the quality of traffic, the better the conversion rates on the second round of ads the consumer sees. If you’re not utilizing this service you may want to ask your marketing team why.