Are they the same thing? Which is better?
It's something you're likely to have heard before if you're a marketer. Although retargeting and marketing are two different strategies, the difference between them is not always obvious. Both can be combined and often have the same goals.
It's essential to be able to distinguish the terms and optimize each one in order to get the best ROI on retargeting or remarketing efforts. This is what we will be covering in this article.
We will be:
- Let's look at the differences between retargeting or remarketing.
- Discuss the confusion surrounding these two strategies
- Learn when and how to use Retargeting.
Let's get started.
Retargeting, remarketing and retargeting are both ways to re-engage customers who have previously interacted with your brand.
Retargeting is done mainly through display ads. Email remarketing is used.
Technology tools blur the lines between these two concepts (like display ads that target customers via an email list).
Retargeting can be used to increase brand awareness and maximize ROI with a small budget.
Remarketing can be used to re-engage inactive customers or convert abandoned cart users.
Retargeting vs. remarketing: How to tell the difference
First, let me clarify: What is the difference between remarketing or retargeting? It is my personal preference to distinguish the two using only two factors: channel and audience.
Retargeting users are people who have interacted and made a purchase but have yet to make a purchase. They might have visited your website, read your blog, clicked on an ad, or followed you on social media.
Remarketing is a way to reach past and current customers who have made a purchase but have become inactive or are interested in new offers.
Display ads are the most common way to retarget users. To track user activity on your website and other sites after they leave, brands can embed a tiny piece of code (called cookies). You show them an advertisement that is relevant to their interests, which increases their conversion rate.
You might offer a discount to encourage users who spend time looking at a product on your site.
Email is the most common method of remarketing. Brands can reach out to customers to offer them hyper-relevant offers. For example, product recommendations based upon past purchases.
What is the cause of all this confusion?
It is confusing to separate retargeting from remarketing for a number of reasons. They share a common goal, which is to engage customers who have interacted with your brand in the past and/or are highly likely to become paying customers. This goal can lead brands to blur the lines between these two strategies.
The second is the way that terms are used interchangeably and inconsistently. One quick Google search will reveal much of the confusion. Many articles have different stories about how retargeting is defined and differs from remarketing. It's not surprising that there isn't a wider consensus on this topic if resources aren't all in agreement.
The most important reason for the retargeting and remarketing concepts is that both strategies can be merged using modern technology. The most notable feature is the ability upload email lists to Facebook Ads or Google Display Network and then show targeted ads to those audiences that you interact with via email remarketing.
Image Source from Search Engine Journal
This begs the question: What is the real defining factor in retargeting or remarketing? What is the most important factor in retargeting and remarketing? Is it how many people have interacted with your brand (e.g., whether they've made a purchase or not)? Or is it the medium through which you engage them (emails vs. advertisements). It's the level at which users interact if we are following the original strategy.
Technically, those display ads that are shown to people who have been added to Facebook Ads' email list are a form of Remarketing.
However, I believe that the debate over retargeting and remarketing will continue to evolve, as each strategy becomes more sophisticated and integrates with each other. I recommend that you focus less on the specific definitions of each concept and rather have a general understanding. Next, you can focus on the best approaches to fit your strategy.
Which one should I use?
Both! Both retargeting and marketing play a part in moving potential customers further down the funnel. It is not about whether you should use either strategy, but when.
Let's look at the best scenarios for each strategy.
Retargeting: When should it be used?
Brand awareness can be increased
Retargeting ads can be a very effective way to keep your brand top-of mind for your target audience. It is crucial for two reasons. A retargeted advertisement can help a visitor to your site take the next step and make a purchase.
Retargeted ads can also be used to remind people to choose your products, even if they aren't ready to purchase.
Profit from the competition's leads
Retargeting ads can be done in a number of ways. Targeting your competitors' website visitors can give you a competitive edge and show them ads for your products. To encourage people to choose your products, you can offer discounts.
You can make the most of your small budget
Retargeting is a great way to get the most out of your ads budget if you have a small budget. For every $1 spent on Facebook Ads, sellers can earn between $8-12. This is a 10X ROI or more at a 33% lower price than the industry average.
Image Source: Socioh
Remarketing: When should it be used?
Cross-sell and upsell
Customers who have purchased your products in the past are a great opportunity to upsell or cross-sell to them.
Get warm for cold leads
Remarketing emails are a great way to reengage customers who have made purchases in the past, but are no longer active in your pipeline. These emails are highly personalized and customizable, making it possible to send hyper-relevant product recommendations to customers and offer other offers to draw them back to your brand.
Reduce card abandonment
Users abandon nearly 70% of online shopping carts without ever making a purchase. This rate rises to 85% when you take into account mobile users.
Image Source: Sleeknote
Remarketing emails that remind customers about products they have abandoned have an open rate at 41% and click rates of 9.5%, which is significantly higher than standard marketing email.
Retargeting vs. remarketing: Putting it All Together
Let's review what we know about the difference between retargeting and remarketing. Retargeting can be used to reach people who have interacted and have not yet purchased from your brand. Remarketing can be used to reengage past and current customers. Display ads are the most common way to retarget customers, while email is more popular for remarketing.
Although the strategies may be technically different, they all have one goal: to get users to convert.
Retargeting and remarketing can be combined to maximize their effectiveness. This will increase conversions and help you to gain new customers.
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The post Retargeting and Remarketing: What is the Difference? Marketing Insider Group published the first post.
By: Michael Brenner
Title: Retargeting vs. Remarketing: What’s The Difference?
Sourced From: marketinginsidergroup.com/content-marketing/retargeting-vs-remarketing/
Published Date: Tue, 28 Jun 2022 10:00:00 +0000