CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
Have you ever visited a website and then for days or weeks after you visited, the website’s ads still seem to be following you around? This is no coincidence as more and more companies are choosing to leverage their online strategy using Retargeting ads. These ads target visitors after they have visited a website and then follow them around during their online experience with targeted ads for their brand’s website. The real question is how effective are these ads that seem to be stalking people around during their web surfing experience?
A digital analytics company Comscore, recently conducted a study to determine just which type of display advertising is truly most effective. They analyzed over 100 campaigns from 39 different advertisers throughout seven different industries, looking at the increase in brand website visits and branded search queries. Since this study focused on a variety of industries we can’t say for sure how effective retargeting ads are during the car shopping experience, but it still gives a good idea of effectiveness. The other types of ads used were Audience Targeting, Contextual Targeting, Efficiency Pricing, Premium Pricing, Retargeting, and Run-Of-Network ads.
The study concluded that out of all six different types of display advertising, Retargeting had the largest increase of branded search terms within a month of being exposed to an ad with over a 1000% increase. The greatest advantage of retargeting is that you are serving ads to potential customers who have already shown a direct interest in your brand by visiting your site. Unlike contextual display ads that show up only on sites with related content, retargeting ads can be placed on a much larger network. The Retargeting ads don’t need to be contextual and match the content since the users seeing these ads are familiar with the brand. For example, a local Chevy Dealership’s ad showing up while I am reading the celebrity gossip column...I mean the Wall Street Journal. Although it seems out of place, the theory behind this irrelevant ad placement would be since they have already visited the website, it shouldn’t matter what they are reading about. The visitor knows your brand and the ad acts as a reminder of their previous website visit interaction and will hopefully result in a full conversion and they will submit an email form or maybe not abandon their shopping cart on their next visit. Another effective advertising tool is to combine some of these advertising techniques such as using Retargeting on Premium networks. This allows you to serve advertising to the most captive and relevant audience possible at the right time and the right place.
Although the study concluded that retargeting is the most effective out of all the types of display advertising, it is important to maintain a strong and diverse advertising strategy online and offline to get the best results. Retargeting is perfect for converting those non-converted previous visitors, but you still need to get people to your website for the first initial visit. This can be accomplished with a variety of advertising, both digital and traditional, to increase brand awareness and ultimately result in more business.
Dan Blau has worked in digital advertising for 4 years. Dan's first car was a 1995 Turqiose Toyota Tercel 5 speed.