Both have the goal of increasing purchases on your website, and it's understandable how they are often confused or perceived as the same thing. However, retargeting and remarketing are two distinct techniques, both belonging to the realm of digital marketing, and they can be extremely useful if well executed, especially for e-commerce.
Even if a website enjoys a great conversion rate (the percentage ratio between visits and conversions), statistics show that only 2% of those conversions come from a single visit. For the remaining 98%, users interrupt the purchasing process halfway and complete it at a later time, leaving the purchase process suspended.
A portion of that 98% completes their purchases thanks to the use of the techniques mentioned a few lines ago. In this article, we aim to explain the differences between the two, discussing their features and applications.
Let's begin by explaining the differences between retargeting and remarketing, starting with retargeting.
Retargeting is a technique that utilizes small text files that store user information when they visit a website. These famous files are called cookies.
Cookies, specifically technical ones, are necessary for the functioning of a website. When a user accesses a website for the first time, a piece of code is stored, saving certain user information. With the user's permission, this information can include:
This allows users to have everything at their fingertips at any given moment. By storing information with these codes, which comply with the privacy regulations outlined in the GDPR, it is possible to implement this strategy.
Once the access to a specific website is registered, whether with or without interactions, advertising platforms "know" about the visit. This allows them to target advertising specifically to users who have made at least one visit to that particular site.
The advertising is presented in a "display" mode, meaning through banners placed on dedicated spaces provided by advertising platforms for advertisers. These ads are then presented to the user during their browsing on other websites, serving as a reminder of their previous visit. These banners are seamlessly integrated into the page without appearing overly intrusive or as pop-ups.
Retargeting can also be implemented on various social media platforms through user profiling. To explain further, based on our interactions with specific content compared to others, social media algorithms can determine the user's preferences. By combining this information with other data provided during registration (such as age, gender, country, etc.), platforms can present us with ads that are potentially aligned with our interests.
When aiming to increase the likelihood of obtaining conversions exclusively, it is advisable to prefer retargeting over remarketing. This technique allows reaching users who likely already have an interest in what the site offers, considering they have visited it for a reason.
By doing so, the advertising effectiveness increases as it no longer involves blindly shooting but rather targets users based on a precise criterion. However, these ads, despite being presented to users who have, or likely have, an interest in the product and/or service, address a "latent demand".
Latent demand refers to a user's potential need that has not been explicitly expressed. The effectiveness of a retargeting campaign lies in how the ad is presented, including its graphics, layout, provided information, and more.
Therefore, it is crucial to carefully craft the ad to achieve the best possible results while avoiding overwhelming the user.
After delving into the technique of retargeting, exploring its applications and functionality, let's move on to explaining remarketing techniques.
We previously saw how cookies are essential to implementing, or even just considering, a retargeting strategy. However, for this section of the article, these elements are not as crucial as having at least one contact, preferably an email address.
Indeed, remarketing requires at least one form of contact to reach out to the user and offer specific deals.
This technique is highly effective when it comes to email marketing campaigns, increasing the likelihood of conversions and improving customer loyalty.
To achieve the best possible outcome, it is highly recommended to use a CRM software and integrate it with your email provider. We have had the pleasure of writing some articles on this topic. Check here for the one dedicated to CRMs!
There can be various ways to employ remarketing. Here are some examples:
These are just a few ways to reach out to visitors of your website using remarketing techniques.
Choosing to use remarketing instead of retargeting is advisable when aiming to achieve greater customer loyalty while still maintaining the objective of conversion.
While remarketing campaigns require close attention to graphic content, email marketing campaigns should focus more on the copy. It should be captivating, engaging, and able to pique the recipient's curiosity with just the email subject.
Attention should also be given to the layout, organization, and visual appearance, although they are not crucial in determining whether the message will be opened.
At this point, we can say that retargeting and remarketing are two distinct strategies. Although both require interaction with your website and share the common goal of increasing conversions, the "how" differs significantly.
In retargeting, we have access to the information that search engines or social media platforms have about users through cookies and profiling. With this information, the only task is to set the target criteria and create ad graphics.
In remarketing, on the other hand, by acquiring user contacts, messages, especially via email, can be sent to users who have shown a greater interest in the products and/or services. This allows for personalized messages on a one-to-one basis, creating a direct relationship between the company and the customer.
Ekeria, an inbound marketing agency, supports companies in their growth processes to achieve desired objectives. It's now time to put what you've learned in this article into practice, relying on expert hands. Contact us for a free consultation!