Five ways how digital marketers waste retargeting dollars

5 ways marketers waste retargeting dollars
Retargeting is no longer an outdated, cookie-based marketing tactic used to follow audiences around the web — at least it doesn’t have to be. There are now tools available to help marketers understand where customers are along their individual journeys and develop flexible strategies that convert those who are ready to buy, and nurture the rest in the right direction. Yet marketers waste an estimated 20 to 75 percent of their retargeting budgets delivering repetitive and irrelevant ads. Here are five common reasons why—and what they can do to fix it:

1. They don’t have insight into audience intent

Standard practices add users to retargeting pools on page load, but not everyone who clicks an ad or browses a website is ready to buy, and hitting those audiences with conversion-based tactics shortly after can be a waste of money. Knowing the amount of time customers spent on a website, the number of products they checked out, the specific features they engaged with, or whether or not they added anything to their shopping cart can tell marketers a lot more than a website click. Collecting behavioural data like that can be as simple as placing a snippet of Javascript from your retargeting partner onto your site.

2. They haven’t taken every touchpoint into account

Another key element that helps marketers understand where customers are in their purchase journey is understanding where they’ve been — whether they’ve interacted with their brand before, the number of times, and on what platform. This offers additional insight into their customers’ likelihood to buy, which is why they need to work with a vendor that integrates a variety of data sources into their retargeting solution, from CDPs to e-commerce platforms.

3. They don’t have enough control over their campaigns

When marketers work with third-party vendors to manage their campaigns, they often don’t get any insight into where their ads are running or why audiences are being targeted. That makes it impossible for them to know which elements drove success, or what conversions should be attributed to the campaign. Instead, they should search for retargeting partners that empower them to understand the programmatic space, offer detailed, real-time analytics, and will work with them to adjust the strategy or optimize creative based on their most profitable audiences.

4. They’re relying too heavily on automation

Automation is a powerful way to analyze and segment data, but for machine learning to be successful, it needs to understand what “success” looks like, and have the time and data to learn how to reach that goal. To get to this point as efficiently as possible, marketers need a knowledgeable team, either internally or externally, that they can work with to set the strategy and provide optimization recommendations along the way.

5. They’re struggling to balance scale and efficiency

When marketers work with retargeting partners that allow them to build intelligent, full-funnel campaigns, it’s possible to achieve scale without completely sacrificing performance. They can start by targeting high-intent audiences with incentives based on the last product they checked out. Once these campaigns are dialled for efficiency, they can scale by turning their attention to potential customers who are still in the research phase, targeting them with upper-funnel content that increases consideration and grows their customer base long-term. Learn more about Contobox’s retargeting solution.

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