Remarketing and Retargeting are both strategies used in digital marketing to reconnect with potential customers who have interacted with a brand but have not completed a desired action, like making a purchase. While the terms are often used interchangeably, there are subtle differences between them. Let’s break down each one and explain how they work in detail.
Remarketing
Remarketing typically refers to the process of re-engaging customers through email campaigns. It involves collecting data on users who have interacted with a brand (like visiting a website, adding products to a cart, or downloading a resource) and sending them targeted emails to encourage them to return and complete an action.
How Remarketing Works
Data Collection:
When a user interacts with your website, a cookie is placed in their browser, or their email is captured through a form submission.
Information about their behavior on your site (e.g., pages visited, products viewed) is stored.
Audience Segmentation:
Users are segmented based on their behavior. For example, users who abandoned their shopping carts might be grouped together, while those who only visited product pages might form another segment.
This segmentation allows for highly personalized email campaigns.
Email Campaigns:
Targeted emails are sent to these segments. These emails might include reminders about the abandoned cart, special offers, or recommendations based on their browsing history.
The goal is to bring the user back to the site to complete the desired action (like making a purchase).
Performance Tracking:
The effectiveness of the remarketing campaigns is tracked using metrics like open rates, click-through rates, and conversion rates.
Marketers adjust their strategies based on these metrics to improve results.
Retargeting
Retargeting refers to online ad placement that is targeted to users who have previously visited a website or engaged with content but did not complete a desired action. Retargeting primarily uses cookies to track users and display relevant ads to them as they browse other sites on the web.
How Retargeting Works:
Tracking Users:
When a user visits your website, a tracking pixel (a small piece of code) or a cookie is placed in their browser.
This cookie tracks the user's behavior on your site (e.g., pages visited, time spent, actions taken).
Building Audiences:
Based on the tracked data, audiences are created. For example, users who viewed a specific product but didn’t purchase might be grouped together.
These audiences can be further refined by factors like how recently they visited the site or how many times they’ve visited.
Ad Creation:
Ads are created specifically for these audiences. These ads often feature the exact products or services the user viewed, with calls to action like “Buy Now” or “Don’t Miss Out!”
Dynamic retargeting can automatically generate ads with the products a user viewed, making the ads more personalized and relevant.
Ad Placement:
The retargeting ads are shown to these users as they browse other websites, use social media, or watch videos online.
Retargeting can happen across various platforms, including Google Display Network, Facebook, Instagram, and even YouTube.
Frequency and Optimization:
The frequency of retargeting ads is carefully managed to avoid overwhelming the user, which can lead to ad fatigue.
Marketers monitor the performance of retargeting campaigns using metrics like impressions, clicks, and conversions, and optimize the ads accordingly.
Key Differences:
Channels Used:
Remarketing: Primarily involves email campaigns.
Retargeting: Involves online ad placements.
Audience Targeting:
Remarketing: Targets users based on email lists or specific actions (like form submissions).
Retargeting: Targets users based on their online behavior tracked via cookies.
Personalization:
Remarketing: Can be highly personalized with emails tailored to specific user segments.
Retargeting: Personalization is often based on the specific products or services a user interacted with.
When to Use Remarketing vs Retargeting
Remarketing is effective for nurturing leads over time, especially when you have a longer sales cycle or when users are likely to need multiple touchpoints before making a decision.
Retargeting is ideal for capturing potential customers who are closer to making a purchase but need an extra push. It's particularly useful for e-commerce, where showing users the products they previously viewed can drive conversions.
In summary, both remarketing and retargeting are essential tools in a digital marketer's arsenal. They work best when combined, allowing you to reach potential customers across multiple channels and guide them through the sales funnel more effectively.