The fact is, most people who first visit your site don’t have any intention of buying anything. They first come out of curiosity and to find information.
Most sites have an average direct conversion of 4% or less. That means if you have 1000 visitors a day, only 40 of them (or less) will convert to either buy or sign up for your email list.
A retargeting campaign involves using code called a pixel to install on your site so that the platform you run the ads on – whether Google, Facebook, Twitter or something else – knows to deliver the ads to the people who have already visited your site. By delivering ads to people who have already gone to your site but did not convert, you can improve conversions.
To set realistic goals, you’ll first need to know how many people visit your site during a given period. Plus, you should already know your conversion rate for those visitors without retargeting. Once you have that information, you can judge how well retargeting is doing in helping you reach your conversion goals.
How many times are people going to see your advertisement? How many times do you want your audience to see them? The more money you pay for your advertisement, the more people who will see it. However, it’s imperative to get your targeting right before you up the ante.
This is an important goal to have, and the way you set this goal is to use math. If your site normally has a 4 percent conversion rate, it is likely that your advertisement will stick to about the same conversion rate. But since you’re remarketing to them, that will up your overall conversion rate; therefore, you need more clicks to make the math work.
A very important goal to set is how many actual conversions you think you’re going to get. You can base that on your normal conversions directly on your site, as mentioned above. This is going to allow you to figure out your cost per conversion too. Remember to consider the profit you’ll make per purchase in your goal setting so you know how much you can spend on your ads.
The way this works is that a potential customer comes to your site, and then less than 4% buy. The rest either do nothing or they might leave something in their cart. Then later when they are surfing the web, they’ll see your ad, and it will capture their attention because they’re going to be more likely to recognize your branding. They will be more likely to click it than someone who has never heard of you.
Being able to deliver specific ads to special people who have visited your site before is a very powerful marketing opportunity for any business. Your return on investment will pay off big time when you learn how to run a retargeting campaign with the right goals.