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Remarketing vs retargeting. How are they different and what will be better for your business?

A common misconception in internet marketing is the confusion of remarketing and retargeting. Similar-sounding names can be confusing, as well as the similar purpose of using both types of advertising. However, if we take a closer look at both concepts, we can notice significant differences that will have a large impact on the achievement of the assumed effects. What is remarketing and what is retargeting? What are they characterized by? Which solution to choose? You can find out in the article prepared by Paraphrase.Online.

What do remarketing and retargeting have in common?

According to the latest data provided by Paraphrase Online, it is assumed that 97% of visitors to your site will never come back. Losing so many potential customers can worry you. This is where remarketing and retargeting can be used to re-reach people who previously expressed their interest in your offer.

If we briefly compare remarketing vs. retargeting, we can conclude that both strategies share the same goal – increasing conversion based on reaching people who already know the selected brand. Over the years, the concepts began to overlap more and more, and the previously visible differences blurred. Hence, more and more frequent questions arise about the differences between the two strategies, as well as questions about which one will be more effective. In order to be able to answer these questions, we will first look at each of these concepts separately.

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Remarketing – what is it?

You already know part of the answer to the question what is remarketing. It is a marketing strategy to re-reach users who have already seen your offer before. Now it is worth taking a closer look at the operating strategy itself. Remarketing is the collection of relevant information about users and the creation of lists based on them, which will later allow you to send automatic or personalized sales messages to your recipients.

You can use remarketing when users subscribe to your email list but don’t make a purchase. You can also use this strategy to reach people who were your customers but haven’t been shopping for a while.

Types of remarketing. Which one to choose?

In internet marketing, you can distinguish different types of remarketing, which allows you to better adjust the activity to your company and business goals.

Standard remarketing – this is how Google display remarketing ads are determined, as well as e-mail remarketing. It involves sending messages and showing ads to all people who have abandoned their cart or have not made purchases in your online store for some time.

Dynamic remarketing – in this case, displaying advertisements and sending messages is carried out using intelligent Google machines. Dynamic remarketing allows you to automatically adjust ads to users in relation to the selected interaction with your website. However, remember not to entrust the entire implementation to Google machines – control them and verify their actions.

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Advanced remarketing – this strategy requires user segmentation in terms of their interaction on the page and thus adjusting the message content. For this purpose, you can send a different message to people who have read the site briefly and spent less than a minute there, and a different message to people who have read the various sites on the site and initially added products to their carts.

Why is it worth using remarketing in your strategy?

Undoubtedly, the remarketing campaign can be considered very effective. However, it is worth considering what benefits it can actually bring to your company. Below we present the most frequently mentioned advantages of remarketing.

– Increase your conversion rate results.
– Strengthening relationships with existing customers.
– Support for building brand awareness on the web.
– Increasing the average amount of the completed transaction.

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How to create a good remarketing campaign?

A well-structured email management system can help you build an effective remarketing campaign. Some of these systems allow the use of automatic message templates, which will improve your process of contacting recipients. In this way, you can send users e-mails with information about an abandoned cart or messages encouraging them to supplement their purchases with additional, thematically related products. The use of automatic messages will allow you to stay in constant contact with users, and it will not require you to spend too much time and energy. An effective remarketing campaign should also be based on customer segmentation based on the type of their interaction with the site. Focus on planning your communication with recipients, e.g. on the basis of their interest in a specific segment of products from the offer. It is also worth adding to the call to action, which will be tailored to the selected group of customers – then you will have a better chance of optimizing your conversion rate.

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Retargeting – what is it?

Retargeting, while very similar to remarketing, differs in strategy. In the case of retargeting, paid advertising is primarily used, which generates the need to use platforms such as Google Ads or Facebook Ads. This is how you can reach people who are dropping out on your site and encourage them to come back. Cookies are used to track user behavior. Ads may be displayed on other sites (known as the ad network) visited by users.

Types of retargeting. Which one to choose?

As in the case of remarketing, here you can also distinguish types of advertising.

Static retargeting – presenting the same ad to all users who have visited your site. This is a good solution, for example, when you want to build brand awareness and promote new products.

Dynamic retargeting – Similar to dynamic remarketing, this involves directing audiences back to your website based on an automatic analysis of how they’ve interacted with it.

Why is it worth using retargeting in your strategy?

Are you wondering why the retargeting campaign is so popular among entrepreneurs? Its advantages are not only increased sales, although it is best known for this. Below we present the most frequently mentioned advantages of implementing retargeting in your marketing strategy.

– Bringing the customer to the last sales funnel
– Conversion rate optimization.
– Increasing brand awareness.

How to create a good retargeting campaign?

When implementing retargeting in your marketing strategy, focus on setting clear goals for your action. This way you will know who exactly you want to reach and what message will help you achieve the desired effect. For example, you may choose to target your message to people who have spent more than a minute on your site. Another solution will be to reach people who gave up the purchase while at one of the stages of finalizing the purchase. Once you’ve got these elements in place, decide where you want your remarketing tags to appear on your website, and then combine them with custom landing pages that will drive your audience to take specific action.

Remarketing vs. retargeting. What to choose?

Perhaps now that you know what remarketing and retargeting are, you are able to determine when individual solutions will be more useful for you. However, if you still have doubts in this regard, follow our tips.

Use remarketing when you want to reach people who have already cooperated with you at a certain stage and want to engage them again. Remarketing is a great way to not only encourage an abandoned transaction, but also maintain customer relationships and increase sales by encouraging more or more purchases.

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Retargeting, on the other hand, will be a better solution when you want to encourage people who have previously interacted with your business through your website or social media to take a specific action. This is the best solution when your main goal is to lead the user to the last stage of the sales funnel and increase conversion. Retargeting also increases awareness of your brand on the web.

If you constantly compare remarketing vs. retargeting and you still do not know what to choose, we suggest you try this issue from a slightly different perspective. Each of these solutions is an effective method of optimizing conversions and convincing recipients to complete the transaction, so a combination of both strategies can be a great solution for you. Then you will reach people who have previously interacted with your brand even more effectively and perhaps your sales results will go to an even higher level.

How to measure the effectiveness of a remarketing and retargeting campaign?

Both your remarketing and retargeting campaigns can help you get great ecommerce sales results. However, you need to know how to analyze the results achieved. Then you will know whether your marketing activities bring results or need improvement. So what should you analyze? Take note of the following, among other things:

– Number of transactions of returning customers,
– Conversion rate,
– Abandoned carts indicator,
– Number of unique users,
– Number of returning users,
– Number of page views.
– Average time spent on the site.
– Email open indicators.

To analyze the above results of the remarketing and retargeting campaigns, you can use, for example, Google Analytics. If you log into your account and then go to the Conversions report, you’ll find a lot of information about your progress. For example, you can find out what your goal achievement level is, what your goal value is, what your conversion rate is, and what your drop rate is. Interestingly, you can also analyze the visualization of customer paths on the way to conversion. You can also find information about recipients in Google Analytics – all you need to do is go to the Audience report and search for the information you are interested in. There, for example, you can compare the number of unique users with returning users.

If you decide to create an ad in Google Ads, you can also follow the progress of your work in this panel. In this tool, you have access to detailed information on how your ad is doing, so you can tell if it’s effective or if it needs to be changed. For example, you can verify the CTR, which is the ratio of the number of clicks on an ad to the number of impressions, as well as the number of clicks on the ad itself. Google Ads also allows you to verify the price per ad click, conversion rate or CPA (cost of conversion).

Remarketing vs retargeting. How are they different and what will be better for your business? Summary

Both remarketing and retargeting can have a great impact on increasing conversion results in your business. Which solution you choose should depend primarily on your resources and purpose. It is also worth considering combining a remarketing campaign and a retargeting campaign, the combined forces of both strategies can result in increased effectiveness.

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