In the world of digital marketing, remarketing and retargeting are often used interchangeably, but they are not the same. Both strategies aim to re-engage users who have interacted with your brand, but they use different approaches and channels. Understanding the differences and how to use them effectively can significantly boost your marketing campaigns.
What is Remarketing?
Remarketing primarily involves re-engaging existing customers through email campaigns. It focuses on people who have already interacted with your brand, encouraging them to complete a purchase or return to your site. This method uses data like email addresses or phone numbers collected from previous interactions.
How Email Remarketing Works
Remarketing through email typically involves sending targeted messages based on a user’s previous actions. For example, if a user abandons their shopping cart, you can send them an email reminding them of the items left behind and perhaps include a special offer to encourage the purchase.
Example of Email Remarketing:
- Scenario: A user adds a product to their cart but does not complete the purchase.
- Action: Send an email reminder with a discount code.
[su_quote cite=”Andrew Davis”]Email marketing is not about the stuff you want to sell. It’s about the stories you want to tell.[/su_quote]
What is Retargeting?
Retargeting involves showing ads to users who have visited your website or engaged with your content but did not make a purchase. These ads are displayed as they browse other websites, using cookies to track their activity.
Types of Retargeting
- On-Site Retargeting: Targets users based on their interactions on your site, such as viewing a product page but not buying.
- Off-Site Retargeting: Targets users based on their interactions outside your site, like engaging with your social media posts.
Example of Ad Retargeting:
- Scenario: A user views a product on your website.
- Action: Show ads for that product on other websites they visit.
[su_quote cite=”Criteo”]Retargeting ads can bring back 26% of customers who have left your site without converting[/su_quote]
Retargeting Statistics and Insights
| Insight | Statistics |
|---|---|
| Conversion Rates | First-time website visitors only convert 2.4% of the time, while retargeted users are 8 times cheaper to reach per click. |
| Usage in Platforms | 75% of marketers use retargeting in Facebook and Instagram advertising, and 69% use Google advertising. |
| Effectiveness | Retargeted ads have a 180% higher click-through rate and a 292% higher conversion rate compared to regular ads. |
| Adoption by SMBs and Enterprises | 80% of SMBs use social media retargeting compared to 73% of enterprises. For video ads, 58% of enterprises use retargeting compared to 27% of SMBs. |
Key Differences Between Remarketing and Retargeting
Channels of Communication
- Remarketing: Uses direct channels like email, SMS, and push notifications.
- Retargeting: Uses display ads on third-party websites and social media platforms.
Data Utilization
- Remarketing: Relies on explicit data provided by the user, such as email addresses.
- Retargeting: Uses cookies and other tracking methods to display ads to users based on their online behavior.
Personalization
Both remarketing and retargeting can be highly personalized, but they use different data sources. Remarketing uses customer-provided data, while retargeting leverages behavioral data from cookies.
Team Requirements
- Remarketing Teams: Need strong CRM skills and expertise in email marketing tools.
- Retargeting Teams: Require knowledge in data analysis, machine learning, and ad placement strategies.
When to Use Remarketing vs. Retargeting
Use Remarketing If:
- You want to re-engage existing customers.
- Your product or service involves repeat purchases.
- You have a limited marketing budget.
Use Retargeting If:
- Your goal is to attract new customers.
- Your product is typically a one-time purchase.
- You are already investing in brand awareness campaigns.
[su_quote cite=”RTB House”]A successful marketing strategy requires a holistic approach, utilizing both remarketing and retargeting to engage users at different stages of their journey[/su_quote]
Combining Remarketing and Retargeting
Using both strategies together can maximize your marketing efforts. For instance, you can retarget new users with display ads and then use remarketing to send personalized emails once they have shown interest.
Example Strategy:
- Retargeting: Show ads to users who visited your product page but did not buy.
- Remarketing: Send follow-up emails to users who clicked on the retargeting ads.
Additional Insights and Trends for 2024
- Remarketing vs. Retargeting Adoption: 68% of marketing agencies now allocate funds for remarketing, and 47% of marketers use retargeting to acquire new customers.
- Impact on E-commerce: Retargeting can increase web traffic by 700% and boost conversion rates by 147%.
- Consumer Behavior: 47% of shoppers are willing to sacrifice privacy for better deals, and retargeted consumers are three times more likely to click on ads than new visitors.
- Technological Advancements: AI and machine learning enhance targeting precision, while AR and VR offer immersive ad experiences.
- App Retargeting: App retargeting can boost conversion rates by 38% and increase product browsing by 224%.
Conclusion
Understanding the nuances between remarketing and retargeting can help you craft more effective marketing campaigns. Both strategies have their place in a comprehensive digital marketing plan. By leveraging the strengths of each, you can re-engage potential customers and drive higher conversions.
[su_quote cite=”Seth Godin”]Marketing is no longer about the stuff that you make, but about the stories you tell.[/su_quote]
