Why remarketing is beneficial in programmatic advertising

why remarketing is beneficial in programmatic advertising

So we’ve covered the basics of programmatic advertising, how it works, and the benefits it can provide for your business. With all the different elements involved, it’s easy to get lost in the lingo of the adtech space. You may have heard the term remarketing before once or twice, but what exactly is it? Here’s a breakdown of remarketing, the benefits it provides, and why remarketing is beneficial in programmatic advertising. 

What it is

Remarketing refers to the use of display ads to market/target a prospect who visits your website through a prospect/display ad but does not end up making a purchase and does not convert into a sale. A sale can refer to anything from the purchase of a product to an online form fill or phone call. 

Here’s an example: a user clicks an advertisement of a service that is being provided by your computer maintenance business, which leads them to your website. A pixel/tag is placed on the prospect’s laptop to track their time spent on your website. The prospect visits your contact us page, but does not end up filling out the form and then goes on to visit another website (ex. Forbes). Remarketing would then allow your business to occupy ad space (in real time) and display your ad to that user on the Forbes website, increasing the likelihood of them clicking that ad and converting to a sale. 

Frequency cap

Frequency cap refers to how often a user is targeted. For example, a prospect would be shown four ads per day for seven days. After those seven days, they would be shown one ad per day. A typical remarketing campaign can last up to 90 days, however, the number of days a user is remarketed for will typically depend on the type of product/service your business is advertising. Once the user converts to a sale, they will not be targeted anymore.

Higher rate of conversions

This is the biggest factor that highlights why remarketing is beneficial in programmatic advertising. Due to the highly targeted nature of a remarketing campaign, it provides significantly higher rate of conversions than a prospecting campaign. For this reason, buyers place higher bids on their remarketing campaigns.

Promoting more than one product/service

When running separate advertising campaigns for different products/services, remarketing is beneficial to gather data and directly target your prospects multiple times. Users who have come to your website from the first advertisement can be retargeted again for the second advertisement.