The State of Retargeting: Key Statistics and Trends
In the digital marketing realm, retargeting, also known as remarketing, has emerged as a powerful tool for brands and marketers. It allows them to win back users' attention long after they've visited their websites. By employing user data, retargeting enables marketers to serve ads through various channels such as search engines, social media platforms, email, and mobile apps. This article explores the effectiveness of retargeting and how consumers perceive branded ads that follow them online.
Top Retargeting Statistics
Before delving into the details, let's look at some compelling retargeting statistics:
- The Global Retargeting Software Market: Predicted to reach a staggering $8.87 billion by 2029.
- Dedicated Retargeting Budget: One in five marketers now allocates budget specifically for retargeting.
- Social Media Dominance: A whopping 77% of marketers employ retargeting in Facebook and Instagram advertising.
- Cost Efficiency: Retargeted users are eight times cheaper to reach per click.
- AI Integration: An impressive 88% of businesses are using or planning to use AI to optimize their retargeting campaigns.
- Consumer Skepticism: Despite its effectiveness, 84% of users either ignore or are put off by retargeting ads.
- Post-Cookie Concerns: 53% of marketers express concerns about ad targeting's effectiveness in a post-cookie world.
The State Of Retargeting
In a shifting landscape where privacy laws have been fortified, and third-party cookies are being phased out, retargeting has adapted. Instead of abandoning this strategy, the industry has pivoted toward leveraging first-party user data to serve ads across various channels, making the retargeting industry healthier than ever.
The Market Growth
- Analysts valued the global retargeting software market at $2.9 billion in 2021.
- This market is projected to grow at a 15% CAGR throughout the next decade.
- Increased adoption of cloud-based solutions and the rising number of social media users are propelling this growth.
Marketers Embrace Retargeting
- One in five marketers now has a dedicated retargeting budget.
- 50% of marketers plan on increasing their investments in retargeting campaigns over the next six months.
- A significant 88% of marketers are currently using or planning to use AI to optimize their retargeting efforts.
- Social platforms like Facebook and Instagram are the primary focus of 77% of retargeting campaigns.
- Google advertising comes in second place, with 69% of marketers utilizing it for remarketing.
- Other channels include email (55%), Twitter (44%), and LinkedIn (35%).
- SMBs tend to favor search and social for retargeting, while enterprises lean towards video and display ads.
- Video and display ad retargeting is more prominent among enterprises.
Why Retargeting Matters
Most marketers understand that potential customers often need multiple interactions with a brand before making a purchase decision. High cart abandonment rates underscore this challenge, with some industries experiencing rates as high as 98%.
Cart Abandonment Rates
- Online shopping cart abandonment rates range from 50-98%, with varying rates across different industries.
The Power of Retargeting
- First-time website visitors convert only 2.4% of the time.
- Returning visitors contribute significantly to online success, accounting for 48% of all e-commerce transactions.
- Retargeted users are eight times cheaper to reach per click.
- Retargeting capitalizes on warm leads, resulting in higher click-through and conversion rates.
Retargeting Goals And Challenges
While retargeting offers numerous benefits, it also presents challenges to marketers. Here's a closer look at these aspects:
- Increasing brand awareness, sales, and customer retention are the top three retargeting goals.
- B2B companies prioritize building brand awareness, while B2C companies emphasize improving customer retention.
Key Performance Indicators
- Return on investment (ROI) is the most critical KPI for retargeting, according to 54% of marketers.
- Successful retargeting programs focus equally on ROI, return on advertising spend, and cost per acquisition.
- The most significant challenges in retargeting differ among business segments.
- For B2B companies, resources and brand image are key concerns, while B2C companies face ad fraud and attribution challenges.
The Post-Cookie Era
As web browsers and data privacy regulations evolve, marketers grapple with adapting their strategies to a world without third-party cookies.
- 53% of marketers are concerned about ad targeting's effectiveness in this post-cookie world.
App Retargeting Statistics
Mobile app retargeting is a critical aspect of the digital landscape, given the vast number of app downloads each year.
- Each year, 20-25% of users abandon apps after a single use, highlighting the challenge of retaining mobile users.
- App retargeting can boost conversion rates by an impressive 38%.
- Food and beverage apps have the highest retargeting adoption rate in North America, followed by shopping apps.
Retargeting Platforms And Technology
To execute effective retargeting campaigns, marketers rely on various platforms and technologies.
- Facebook Custom Audiences is the most-used retargeting platform, with 40% of top websites employing it.
- Other popular platforms include Google Remarketing, Bing Universal Event Tracking, Criteo, and Twitter Ads.
- Access to target audiences is the top feature desired by marketers when selecting a retargeting solution.
- Marketers also value ease of use, strong customer service, and cost considerations.
Areas for Improvement
- Customer service is the primary area for improvement in retargeting solutions, according to 47% of marketers.
- Other areas include optimizing ad spend, defining marketing and sales funnels, streamlining the retargeting process, and improving revenue attribution.
Consumers play a crucial role in the success of retargeting campaigns. Their
perception and comfort level with retargeted ads matter greatly.
- Consumers are comfortable with brands collecting purchase history, personal preferences, and basic demographics.
- However, only a minority are comfortable with brands collecting browsing history and occupational/financial information.
- A substantial 84% of users either ignore or are put off by retargeting ads.
- Nevertheless, 16% of users respond positively to retargeted ads, with some being reminded to visit a brand's website or responding to special offers.
Concerns and Attitudes
- 54% of users express some level of concern when viewing a retargeting ad.
- 29% have a neutral attitude, while 17% are unconcerned.
In conclusion, retargeting remains a vital strategy for marketers looking to strengthen their brands and improve conversions. However, it's essential to strike a balance and avoid overwhelming consumers with excessive ads across multiple channels. As the digital landscape continues to evolve, staying attuned to consumer preferences and privacy concerns is crucial for the success of retargeting campaigns.
For more in-depth insights into industry trends, explore the latest developments in personalization and advertising.