Remarketing harnesses the power of technology to get your message to indecisive customers again and again, until you almost hypnotically persuade them to take out their credit cards.
It usually follows this pattern – a potential buyer visits a webpage and for whatever reason, exits the website. They then start seeing banner ads of that website in many different places. This focuses on a psychological marketing principle that is simple and effective: familiarity. The user feels as if he has known the brand for a long time, and starts subconsciously trusting the website and becomes comfortable with it.
If this sounds like vague, mildly interesting marketing psychology that seems to be more of a hypothesis than a fact, the numbers tell a different story. Customers using active remarketing report more than 50% increases in revenue, boost conversion rates anywhere between 200-500% and lower their overall CPA as well.
How Does Remarketing Function?
Your ad service providers can recognize that cookie and “know” that your visitor had an interest in your website. They can then send targeted ads of your website to them directly. In essence, the ad service providers are “learning” your customer’s preferences.
The main difference between a remarketing campaign and standard banner ads is this:
- Banner ads have data that tells them about your visitor’s “interest graph” (based on gender, age, interests, etc) – so they can “calculate” what ad to display.
- Remarketing banners already know what you like! They eliminate guesswork and work with the knowledge about your past habits, making sure they only get ads of the services they are only genuinely interested in.
Remarketing: Typical Trends
Remarketing translates to hard profit numbers for a huge majority of the customers who integrate it with their standard ad campaigns. Perhaps the most famous remarketing success story is of Loews Hotel Group, who made a whopping 7400% profit off their remarketing costs ($60,000 returns on a $800 remarketing campaign). In addition, their revenue increased 10%, and bookings went up 9%.
These trends are repeatable and predictable all around the Internet as remarketing emerges as a powerful tool that makes full use of psychology and technology to increase profit margins for online campaigns.