Retargeting and AI

Retargeting ads are a form of digital advertising closely related to programming and machine learning, often better than or equal to search (91%), email (92%), and other display ads (92%).

It is a form of automatic purchase of advertisements that is triggered on the basis of information tracked about a user (such as the history of past views, recently purchased products, and other behaviors) mainly through third party data (e.g. browser cookies) and first party data (for example, previous purchases with a brand).

Retargeting ads typically use personalization to make messaging more relevant to customers, resulting in an increase in the average click-through rate (0.7%) compared to traditional online ads (0.07%). Retargeting ads are versatile in many ways, particularly in terms of being able to target customers better than traditional forms of advertising.

The ability to target at the granular level was reported by 61% of marketers as the main benefit of retargeting ads, as their data-driven nature allows them to focus on customer segmentation performance. Targeting customers based on their history with a brand's website (including pages visited, frequency of visits, products viewed, purchase history, search engine query history, or geographic location ), marketers and web agencies can make highly detailed segments. Different audience segmentation techniques yield different results, and retargeting budgets should be positioned in correlation to the value of each segment.

For example, a potential customer who abandoned their online shopping cart is much more valuable to an eCommerce than an average website visitor who saw a couple of pages and then left.

While retargeting ads have proven to be very effective, there is also the other side of the coin to consider: Consumers love personalization, but retargeting ads are often a key factor in instilling feelings of distrust and annoyance.

Cookie-based marketing can be very invasive. Factors such as ad frequency, ad exposure times during the customer journey, and the degree of ad personalization are all variables that not only create negative emotions within consumers, but also drastically reduce ad performance. ads.

In particular, a study by Inskin Media (2017) showed that 53% of consumers reported how exposure to an ad that delays an ad serving a couple of times can be useful but quickly becomes annoying. The time when ad frequency approaches the "annoyance" category appears to be around three ads, as approximately 23% of respondents felt annoyed at this frequency level. compared to 7% who reported that the ad was helpful. The numbers get worse and worse as ad frequency increases, with 35% of respondents feeling annoyed and 3% feeling helped after 4-5 ad exposures, and 32% feeling absolutely angry after. more than 10 exhibits.

AI can optimize ad rate retargeting. Machine learning algorithms can adapt to the ideal number of ad exposures

·         Customers receive to make retargeting ads reach an

·         Optimal level to avoid some degree of annoyance. Given that 55% of customers are discouraged by repeated exposure to a retargeting ad, AI-based optimization can serve as a vital tool for increasing return on investment (ROI).

Retargeting ads are not a "one size fits all" tactic. Messaging, creative content, and ad timing must be related to the various stages of the customer journey. This

Synchronicity aspect with customer journey progression is crucial to getting the relevance customers want from ads, as is the case with programmatic non-retargeting ads. If you don't, your customers are 15% less likely to follow the purchase. Similarly, customers exposed to an irrelevant ad after making a purchase are 4 times less likely to return to the business.

Fortunately, retargeting ads have proven effective for many marketing objectives throughout the customer journey.

For B2C businesses, brand awareness (69%), social engagement (64%), and driving sales (60%) were the most effective goals with retargeting. B2B companies reported similar results with brand awareness (71%), customer retention (59%) and social engagement (58%) benefiting the most from retargeting ads.

 Both B2C and B2B reported lead nurturing (27% and 29% respectively) and product cross-sell / up-sell (33% and 32% respectively) and the marketing objectives with which they recorded the lowest improvement over retargeting ads. Additionally, the timing in which brands try to re-engage customers through retargeting is a crucial factor for success.

Posted By: Abdul Rimaaz

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Created on Feb 28th 2021 15:55. Viewed 205 times.

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