Retargeting Strategies for E-commerce

In e-commerce, the vast majority of your website visitors will not make a purchase on their first visit. They might be browsing, comparing prices, or they might simply get distracted.

Retargeting (or remarketing) is a powerful advertising strategy that gives you a second chance to convert these visitors. It's the practice of showing your ads specifically to people who have already visited your website and have shown an interest in your products.

For an e-commerce business, a smart retargeting strategy is one of the highest-ROI advertising activities you can do.

How Does Retargeting Work?

Retargeting works by using a tracking "pixel" (a small piece of code) on your website. When a user visits your site, the pixel tags them with a browser cookie. You can then use an ad platform, like Facebook Ads or Google Ads, to show your ads specifically to this "tagged" audience as they browse other sites and social media platforms.

Why Retargeting is So Effective for E-commerce

• It Targets a Warm, High-Intent Audience: You are advertising to people who are already familiar with your brand and have shown an interest in your products. They are much more likely to convert than a cold audience.
• It Keeps Your Brand Top-of-Mind: It takes multiple "touchpoints" to make a sale. Retargeting allows you to stay in front of your potential customers as they are making their decision.
• It Has a High Return on Ad Spend (ROAS): Because you are advertising to such a qualified audience, retargeting campaigns typically have a much higher conversion rate and a better ROAS than standard prospecting campaigns.

Key Retargeting Strategies for E-commerce

You can create different retargeting campaigns for different segments of your audience, based on their behavior.

1. The Abandoned Cart Campaign (Most Important)

This is the most crucial and most profitable retargeting campaign you can run.

• The Audience: Create an audience of users who have added a product to their cart but did not complete the purchase.
• The Ad: Use a dynamic product ad. This is an ad that will automatically show the user the exact product that they left in their cart. You can pair this with a compelling offer, like a 10% discount or a free shipping code, to entice them to come back and to complete the purchase.

2. The Product View Campaign

• The Audience: Create an audience of users who have viewed a specific product page but did not add the item to their cart.
• The Ad: You can show them an ad that features the product they viewed, or you can show them a carousel ad with similar or related products.

3. The Category Interest Campaign

• The Audience: Create an audience of users who have visited a specific product category page (e.g., "men's shoes").
• The Ad: You can show them an ad that features your best-selling products from that category.

4. The Past Purchaser Campaign (for Repeat Business)

• The Audience: Create an audience of your existing customers.
• The Ad: You can use this to build loyalty and to encourage repeat purchases. You could show them an ad that announces a new product line or that offers them an exclusive "thank you" discount.

Best Platforms for E-commerce Retargeting

• Facebook and Instagram: These platforms are fantastic for retargeting with highly visual, dynamic product ads. The Meta Pixel is the tracking code you will need to install.
• The Google Ads Network: This allows you to show your retargeting ads across both the Google Display Network (banner ads on other websites) and YouTube.

Best Practices

• Use Frequency Capping: Don't show your ads to the same person too many times. This can be annoying. Set a frequency cap to limit the number of impressions per day.
• Exclude Converters: Once a person has made a purchase, you should exclude them from your product-specific retargeting ads.
• Test Different Time Windows: You can test different audience windows (e.g., retargeting people who have visited in the last 7 days vs. the last 30 days) to see what is most effective.

Conclusion

Retargeting is an essential strategy for any serious e-commerce business. It's your second chance to make a sale. By segmenting your website visitors based on their behavior and by showing them highly relevant, dynamic ads, you can effectively re-engage interested prospects, to recover abandoned carts, and to significantly increase your overall sales and revenue.