The advertising industry has undergone major changes in recent years with the advent of social media networks, mobile apps, and advanced customer behavior-tracking techniques. Companies like Facebook and Google possess a wealth of personal information about their users which they utilize to offer highly precise targeted advertising.
Thanks to cutting-edge online ad technology, advertisements can now be customized to specific target groups with remarkable accuracy, leading to a transformation in digital marketing. The most innovative form of targeted advertising today is Behavioral Retargeting, allowing companies to base their ads on consumers’ previous behaviors.
A study by Howard Beales on Behavioral Retargeting highlights its key advantages:
- Boosts advertising rates
- Offers superior performance compared to standard RON (Run of Network)
- Vital for ad networks and publishers, especially mid-to-long-tail publishers who rely heavily on ad networks.
In this post, we will explore how behavioral retargeting operates, its benefits, and how it can help to raise conversions
Understanding Behavioral Retargeting: What It Is and How It Works
Retargeting based on behavior is a type of online advertising that focuses on individuals who have previously demonstrated an interest in a certain item or service.
Have you ever noticed that the ads displayed on your social media seem to reflect products or services you have recently searched for online? This isn’t just a fluke.
Behavioral retargeting operates by monitoring the activities of users on various websites. Companies employ the use of cookies to keep track of a user’s behavior, and then show relevant ads as the user navigates away from the company’s website or a search engine result.
For instance, if someone searches for “running shoes” on Google, and then visits another website, they may come across an advertisement for those running shoes on the page they are currently viewing.
Retargeting vs. Remarketing
Many individuals confuse behavioral retargeting with remarketing as they share a comparable idea. To clarify the distinction, we have created a comparison table that outlines the major differences between the two.
| Retargeting | Remarketing |
| targets users who have previously visited a website but taken no action | targets users who have already converted into customers (or have taken some other type of desired action) |
| uses cookies to track user behavior on different websites | tracks customer’s emails or contact information from a database when they purchase something from your website |
| shows ads to users on third-party websites | shows ads within the same platform or ecosystem as the original interaction |
| displays ads to those users when they navigate away from the website or search engine page | sends emails with tailored messages and offers based on what customers have previously purchased |
| more flexible and allow for more personalized ad targeting | less flexible and may not allow for as much personalized ad targeting |
| might be perceived as more intrusive | might be perceived as less intrusive |
The Benefits of Using Behavioral Retargeting for Your Business
Behavioral retargeting is a powerful tool that can elevate your business to new heights. Get prepared to reap the benefits of this technique by exploring the following ten key advantages.
- Increased brand recognition – Behavioral retargeting can boost brand recognition by displaying ads to users who have previously shown an interest in your brand or product.
- Elevated conversion rates – By presenting personalized ads to users more likely to make a purchase based on their previous behavior, retargeting can enhance conversion rates.
- Boosted customer loyalty – Showing customized ads that demonstrate your appreciation for customer business and interests can help strengthen customer loyalty through retargeting.
- Enhanced targeting – With behavioral retargeting, you can target users based on their specific behaviors and interests rather than broad demographic categories.
- Higher return on investment – Retargeting often yields a higher ROI compared to other online advertising methods by targeting users who have already expressed interest in your brand or product.
- Increased website traffic – Retargeting can boost website traffic by reminding users about your brand and bringing them back to your website.
- Relevant ads – Behavioral retargeting allows you to display ads that are relevant to users’ interests and behaviors, improving ad relevance and engagement.
- Wider audience reach – Retargeting enables you to show ads to users across all their devices, expanding your audience reach.
- Greater control over ad expenditure – Retargeting gives you control over your ad spending by allowing you to set a specific budget and targeting parameters.
- Ability to optimize campaigns – By targeting specific groups of users and measuring the results, retargeting allows for easy testing and optimization of campaigns.
Potential Drawbacks and Ethical Considerations
Behavioral retargeting offers great benefits, but it’s essential to evaluate the potential drawbacks and ethical considerations before implementing it. The use of tracking technology must be done with responsibility.
Intrusiveness
Some users may find behavioral retargeting to be intrusive as it tracks their online behavior and displays targeted ads. This can result in negative perceptions of the brand and decreased trust among users.
Privacy Issues
The use of cookies and pixel tracking to gather user data for behavioral retargeting may cause privacy concerns and the risk of data abuse. Although some companies may have privacy policies in place to protect user data, there’s always the possibility of data breaches or misusing personal information.
Limited Targeting Capabilities
Behavioral retargeting relies on users showing interest or taking specific actions online to be targeted, meaning some users may be excluded from the targeting, leading to partial or biased results.
Ad Fatigue
Displaying the same ads repeatedly to the same users can result in ad fatigue, reducing the effectiveness of the campaign.
Discrimination
Behavioral retargeting may perpetuate or exacerbate existing biases or discrimination. For instance, if a user visits websites related to a particular race or ethnicity, the platform may only show them ads relevant to that group, excluding other groups and reinforcing stereotypes.
Deceptive Ads
Finally, behavioral retargeting can lead to misleading or deceptive ads. For example, if a user visits a website for a specific product, the platform may display ads for similar products that are not of the same quality or have different features. Brands must ensure their ads are accurate and follow all applicable laws and regulations.
When planning a behavioral retargeting campaign, these concerns should be taken into account. Research has shown that overly aggressive retargeting ads can have negative results in some cases.
However, this should not deter you from taking advantage of its opportunities. The research results provide valuable guidance for online advertisers and pave the way for further exploration of digital marketing strategies that involve targeted ads.
To optimize success and reap the benefits of digital marketing efforts, it’s crucial to tailor ad content that strikes a balance between relevancy and intrusiveness in the user experience. When choosing platforms and tools, it’s important to ensure they offer the necessary features for a successful campaign.
Retargeting Platforms and Tools
The following platforms can assist with establishing, monitoring, and enhancing retargeting efforts. They offer capabilities such as automated processes, split testing, behavioral classification, and analytics to ensure the maximum efficacy of your campaigns.
- Periscopix
- Webrunner Media Group
- ReTargeter
- Google Display Ads
- Just Media
- Facebook Ads
- AdRoll
Types of Behavioral Retargeting
Let’s analyze four of the most prevalent forms of retargeting and discuss how they can assist you in reaching a wider customer base.
Search Retargeting:
This type of retargeting enables marketers to display advertisements based on a user’s search query. By targeting ads based on the things people are searching for, marketers can ensure their ads are shown to those who are most likely to be interested in their product or service. This method works well for companies that offer products that are not necessarily in demand. For instance, a plumbing supplies company may not be able to rely on trends to drive sales. In such a scenario, search retargeting would be an effective way to target potential customers who are actively searching for plumbing supplies.
Site Retargeting:
This type of retargeting enables marketers to display ads based on a user’s browsing history. By monitoring a user’s visits to certain pages or websites, marketers can show them advertisements related to their interests. Site retargeting is especially useful for reaching customers who have already visited a company’s website and are likely interested in its products or services. For instance, if a user visits an online furniture store, the store can display ads for specific items the user viewed on the store’s website.
Contextual Retargeting:
This type of retargeting takes things a step further by allowing marketers to display ads to users based on the content they are currently viewing. For instance, if someone is reading an article about gardening tools and visits another website, a marketer could display an advertisement for gardening tools related to the topic of the article the user was just reading. This form of targeted advertising allows marketers to reach out directly to consumers who are actively interested in their product or service, providing them with an easy way to convert leads into customers.
Social Media Retargeting:
This type of retargeting is similar to contextual retargeting, but instead of displaying ads based on the content the user is currently viewing, it displays ads based on the user’s social media activity. For instance, if someone follows a particular brand or engages with its content on social media, they may be shown ads related to that brand when they visit other websites.
Dynamic Retargeting:
This is a more advanced form of retargeting that uses data and algorithms to continuously adjust and optimize the content of the ads displayed to the target audience. A business installs a pixel on its website or uses a tracking link to collect data on the actions and behaviors of site visitors. Based on the collected data, the business determines its target audience for its dynamic retargeting campaign.
The business then creates various ads relevant to the target audience and uploads them to a dynamic retargeting platform. As the members of the target audience browse the internet, they may be shown the ads created by the business. The dynamic retargeting platform uses algorithms to continuously adjust the content of the ads displayed to the individual.
For instance, if an individual views a product but does not add it to their cart, they may be shown an ad for that product with a special discount to encourage them to purchase. If an individual clicks on an ad and is directed to the business’s website, the dynamic retargeting platform may continue displaying personalized and relevant ads as the user browses the site.
In conclusion, there are several types of behavioral retargeting, and each of them can be used to display personalized and relevant ads to users based on their actions and behaviors. Stay tuned for best practices to maximize the effectiveness of your retargeting campaigns.
7 Steps for Creating a Foolproof Behavioral Retargeting Strategy
Finally, it’s time to create a guide on how to boost conversions with behavioral retargeting. To achieve success in this strategy, careful planning and a proper understanding of your target audience and the type of ads you want to show them is crucial.
Step 1: Understanding Behavioral Connections
The first step in creating a behavioral retargeting strategy is to understand the connections between different behaviors and actions that lead to conversions on your website or app. This involves analyzing how users interact with your product and recognizing patterns that could help you understand the factors that influence their behavior. Examples of behaviors to consider are:
- Purchase behavior: By understanding what motivates users to make a purchase, you can tailor your retargeting efforts to target those who are more likely to convert.
- Engagement behavior: By analyzing how users engage with your content and features, you can identify popular or underutilized areas of your product and adjust your retargeting efforts accordingly.
- Abandonment behavior: Identifying why users abandon their carts or stop using your product can help improve the user experience by addressing common pain points.
- Demographic behavior: Analyzing demographic data such as age, gender, and location of users can help you tailor your retargeting efforts to specific segments of your audience.
Step 2: Segmenting and Adjusting the Target Audience
To create an effective retargeting strategy, it’s crucial to segment and adjusts your target audience based on their actions and behaviors. A well-defined target audience is the foundation of successful behavioral retargeting. Collect data on the actions and behaviors of your website visitors and use this information to define your target audience. Consider creating different target audiences based on different actions and behaviors, such as individuals who visited specific pages and added items to their cart but didn’t complete a purchase. Continuously adjust your target audience as needed based on collected data.
Step 3: Choosing the Right Retargeting Platform
There are several retargeting platforms available, and choosing the right one is essential. Consider the following factors:
- Pricing Model: Different pricing models have different pros and cons. Choose one that fits your budget and needs, whether it’s fixed monthly fees, per impression or click, or bidding systems.
- Reporting Tools: Comprehensive reporting features are essential in tracking and measuring performance metrics such as impressions, clicks, conversions, and others.
- Scalability: Ensure that the retargeting platform can scale with your business as you grow and add customers.
- Customer Support: Quick response times and knowledgeable staff are critical in case of any issues or questions.
- Ad Format Support: Different platforms support different ad formats, such as display, video, or native ads. Choose one that supports the ad format you want to use in your campaigns.
Step 4: Setting up Tracking
Tracking involves implementing tools and processes that enable you to collect data on the behaviors and actions of your target audience. This could include web analytics platforms, CRM systems, and other technologies that track customer interactions and behavior on your website or other online platforms.
Setting up tracking is crucial because it allows you to collect data on the effectiveness of your targeting efforts, identify valuable behaviors for your business, and optimize your targeting strategy to better reach and engage your target audience. However, make sure to be transparent with your customers and comply with privacy regulations, such as the GDPR, by providing clear information on data collection and use and obtaining necessary consent.
Step 5: Design Customized Advertisements
Designing personalized and eye-catching ads for behavioral retargeting is a crucial component of a successful digital marketing plan. Retargeting is effective because of its tailored approach, which enhances interaction with potential clients.
The ads should be visually attractive and pertinent to the customer’s search and must have a compelling call to action.
Each ad should cater to different stages in the buyer’s journey. This approach ensures that the ad appeals to both customers who are already familiar with the brand and those who are not.
Step 6: Start Your Campaign
Once you have set up tracking, designed your ads, and identified the platforms for running them, you are ready to start your campaign.
Monitor your campaign regularly to assess its performance and make any necessary adjustments. Track metrics such as impressions, clicks, conversions, customer lifetime value (CLV), average order value (AOV), and others to gauge the success of your campaign.
Step 7: Evaluate and Enhance
Evaluating and enhancing the campaign is crucial because it ensures that the retargeting efforts are effective and achieve the desired outcomes.
To evaluate the campaign, you need to review the data and metrics related to the retargeting efforts. This includes information such as the number of impressions, clicks, conversions, and overall return on investment (ROI). By analyzing this data, you can determine which aspects of the campaign are performing well and which might need improvement.
To enhance the campaign, you may need to adjust different elements such as the targeting criteria, ad copy, and landing pages. This can improve the overall performance of the campaign and increase the chances of reaching the desired results.
Case Studies
There are several case studies available online that demonstrate the effectiveness of retargeting campaigns. These case studies can provide valuable insights into how to implement and optimize a behavioral retargeting campaign. Here are three examples of how companies have successfully used retargeting to boost conversions:
Case Study 1: Lumension Boosts Homepage Views by 865%
Facing the need to cut costs, Lumension reduced its marketing budget by 30%. To realign its strategy, the company focused on retargeting online ads and protecting its demand generation. Lumension first targeted trial and evaluation pages, product and solution pages, information pages, and pricing pages. The team developed a retargeting strategy that included five key pillars: instant nurturing, targeted direct leads, lead retargeting, influencers, and behavioral intent lookalikes. Despite the budget cut, Lumension’s retargeting efforts resulted in an 81% increase in total advertising impressions (leads) and a 865% increase in homepage views.
Case Study 2: BustedTees and ReTargeter Encourage Repeat Purchases
BustedTees, an online T-shirt company, partnered with ReTargeter, a display advertising, and retargeting company, to launch a campaign aimed at bringing old customers back. The goal was to encourage repeat purchases. ReTargeter developed a series of display ads using CRM retargeting. The results were impressive, with follow-up orders averaging $40 per customer and nearly 200 conversions (ROI = 390%).
Case Study 3: Watchfinder Achieves 1,300% ROI with Precision Remarketing and Google Analytics
Watchfinder, a leading retailer of pre-owned watches in the U.K., wanted to reengage with potential customers who were not completing purchases on their first visit. Retargeting with Google Analytics was suggested as a solution. The company created 20 highly focused lists based on various aspects of user context, such as location, language, and purchase funnel stage. Thanks to Google Analytics’ clear reporting, Watchfinder’s remarketing campaign delivered impressive results, yielding a 1,300% ROI in six months, with an average order value increase of 13% and a 34% decrease in CPAs.