A marketing campaign should tell a story which usually begins with the brand itself: If potential customers have never heard of a brand, it is hard to convince them to buy one of its products or services. Most consumers prefer familiar brands. They buy from companies they know, like and trust. Unknown suppliers have a much harder time. And this is where branding comes into play.
WHAT IS BRANDING?
Branding focuses on strengthening the brand and its visibility. The success of a campaign is not measured by the amount of conversions it generates. That is only secondary. Branding is more about reach, i.e. how many potential customers can be reached with an advertising message.
Especially important is a clear branding message. The user must know the brand behind the ad. Otherwise, brand awareness and buying intention cannot be increased.
Branding ads are designed to promote an open-mindedness for a brand or company. It increases the chance of potential customers reacting positively when they next interact with the brand or even buy their products.
HOW DOES RETARGETING WORK?
Retargeting marks visitors of a website so they can later be targeted with web banners on other websites. The goal is to confront users over and over again with a brand or product to remind them of the interest they have shown before.
Once the branding was successful, retargeting becomes easier as well. It’s only natural that we trust things or people we know. In the same way, users trust brands they know. A study by Search Engine Land shows that a high company profile positively influences the click rate as well as the conversion rate.
Retargeting is so effective because the advertising budget focuses on people that are already familiar with the brand or recently showed an interest in a brand or a particular product. Retargeting measures target potential customers and present exactly those products that consumers are interested in. Personalized advertising messages make a customer feel valued. The buying intention increases, so does the conversion rate of a company.
Technically retargeting works with pixels that are placed on the advertiser’s website. Every time a new user visits the site, a cookie is placed in the browser of the user which stores relevant user information. Retargeting platforms can use this information to later target that user and play personalized advertising.
BENEFITS OF RETARGETING
Exact Targeting: Retargeting allows advertisers to address users that have already shown an interest in a brand or a product
Higher Engagement: Retargeting allows creating tailor-made advertising for specific target groups, which heightens the engagement of users with the advertising media
More Conversions: Ads for highly familiar brands remind users of the benefits a product or company has to offer
Customers want to be personally adressed by advertisting. Retargeting can help targeting customers who have previously shown an interest in a product or company. Since these customers are already familiar with the brand becauce of branding measures, the likelihood of a conversion is increased.
However, retargeting is not always successful. In some cases, customers have no intention in buying a product they seemed to be interested in before. So, it is important to always consider the entire customer journey of a consumer and to limit retargeting with the right frequency capping (i.e. how often a user is shown an advertising measure over a certain period of time).