43 Crucial Retargeting Statistics: 2024 Strategies, Results & Challenges

Did you know that 97% of visitors that leave do not return to your website? After all, with all the information available online and the ads that one sees on a daily basis, it is easy for consumers to simply forget about your brand after only seeing it once. This is why retargeting is such a crucial part of any online marketing strategy. Leads may not convert into sales the first time they check your product or service, but you’d want to be their top-of-mind brand once they are ready to make a purchase. Digital marketers can use retargeting software to send relevant messages to people who are already engaged with your business.

In this article, we’ve compiled some key retargeting statistics that can give you an idea of why retargeting works and what strategies marketers are using to capitalize on this trend. We’ve also included relevant statistics on the challenges marketers are facing when it comes to implementing their retargeted ads.

General Retargeting Statistics

Retargeting has been around for a while now but that does not mean that all businesses are using it to their advantage. So, why should you include it in your marketing strategy? For starters, marketing experts cited it as the top MarTech trend in 2020. Beyond that, however, retargeting statistics have revealed that a quarter of online shoppers actually enjoy seeing retargeted ads. Another study reinforced this by reporting that 38% of consumers say they like seeing these ads, especially if it can help them get better deals.

• 59% of marketers ranked retargeting as the top MarTech trend in 2020 (Ascend2, 2020).
• Most websites can convert only 2% of their visitors on average (Jalali, 2020).
• 97% of visitors that leave do not return to a website (Mailchimp, n.d.).
• 46% percent of paid search practitioners say that retargeting is the most underused online marketing technology (Costello, 2019).
• 30% of consumers have a “positive” or “very positive” opinion of retargeted ads (Costello, 2019).
• 70% of marketers use retargeting for brand awareness, 60% for social engagement, and 58% for customer retention (IAB, n.d.).
• The average cost-per-click (CPC) is $0.66 to $1.23. On the other hand, the average CPC for search and display ads on Google ranges from $1 to $2 for search ads and less than $1 for display ads (WebFX, n.d.).
• Global adoption of app retargeting increased by more than 10% from 2018 to February 2020 (AppsFlyer, 2020).
• 30% of apps with allocated marketing spend now include retargeting in their marketing mix (AppsFlyer, 2020).

Retargeting Effectiveness Statistics

Retargeting seems to have a way of convincing consumers to take a second look at products that they may have previously ignored. This is why it’s not surprising that more companies are increasing their budgets for retargeting, ultimately boosting the global retargeting market size. In fact, these days, retargeting takes a bigger share of the money spent on online advertising. Already, digital marketers are spending nearly half their paid display ad budgets on this strategy, while a good chunk is looking to increase their remarketing budgets in the next six months.

• 50% of marketers plan to increase their remarketing budgets in the next six months (Saleh, n.d.).
• Digital marketers are spending 41% of their paid display ad budgets on retargeting (Lazar, 2020).
• 71% of marketers spend 10–50% of their entire online ad budget on retargeting (IAB. n.d.)
• 68% of digital marketing agencies are shifting a larger portion of their budgets to retargeting because it works (Lazar, 2020).

Retargeting metrics

Looking at these retargeting metrics, it’s easy to understand why marketing experts hail retargeting as a welcome addition to their display advertising efforts. It’s a good way to attract those customers who are more likely to convert.

• 75% of consumers now notice retargeted ads (Saleh, n.d.).
• Retargeted customers are three times more likely to click on your ad than people who haven’t interacted with your business before (Saleh, n.d.).
• 65% of online viewers notice and consider ads showing products they viewed from another page (Pilipenko, 2021).
• 37% of consumers click on retargeted ads because they are drawn to the product shown, while 28% say it’s because it’s an easy way to visit a website they already intended to visit. Another 21% say it’s because of their desire to find out more about the product (Signifi Media, 2020).
• People who see retargeted ads are up to 70% more likely to convert (Costello, 2019).
• Web traffic can increase by a staggering 700% with retargeting (Lazar, 2020).
• The average click-through rate (CTR) for display ads is 0.07% versus 0.7% for retargeted ads. This means that on average, retargeting ad performance is 10 times better than a regular display ad (Wishpond, n.d.)
• Retargeting generated the highest lift in business name searches by 1,046% (Nikolovska, 2021).
• 35% of app marketing conversions result from retargeting (AppsFlyer, 2020).
• App remarketing drives 50% more paying users (Rosenfelder, 2020)
• 92% of marketing professionals said that retargeting performs at the same level or better than search marketing, 91% said the same for email marketing, and 92% agreed to display advertising (Lazar, 2020).

Data on Retargeting Strategies

Though retargeted ads are effective as we highlighted in the previous section, it’s still best to blend them with other marketing tools to achieve your goals. Doing so can increase your sales by 50%. There are also two platforms that you should look into when placing your retargeted ads–Google Display Network (GDN) and Facebook.

• Retargeting goals are increasing brand revenue and acquiring new customers (at 33% each), increasing website engagement (16%), and brand awareness lift (12%) (Costello, 2019).
• Retargeting cart abandoners can increase the conversion rate by up to 26% (Costello, 2019).
• Using retargeting alongside other types of advertising tools increases the chances of sale by 50% (Mailchimp, n.d.).

What, where, and when of retargeted ads

• It’s best to place your retargeted ads on retailer sites since 29% say it’s acceptable. Consumers don’t want to be bothered during their leisure time with just 12% of them ok with seeing retargeted ads on YouTube and only 9% accept attempts via Instagram (Marketing Charts, 2019).
• Among different industries, retail is the one that uses retargeting strategies the most (27%) compared to others such as tech (10%), finance (8%), and travel (4%) (Creadits, 2019).
• GDN reaches 90% of Internet users worldwide (Creadits, 2019), while Facebook has over 2.7 billion active monthly users that small businesses can target (Statista, 2021).
• 67% of marketers are using Facebook’s FBX exchange for retargeting, while 38% are using Twitter’sTailored Audiences exchange (Plomion, n.d.).
• Retargeting your website visitors will be most effective if done within 15 to 30 days after their visit. If too much time has passed, people would typically be less likely to engage with and click on your ads (Signifi Media, 2020).
• 54% of marketers are retargeting on mobile, indicating strong confidence in retargeting’s cross-device performance (IAB. n.d.).
• 87.9% of marketers use site retargeting, which makes it the most preferred type of retargeting strategy. Meanwhile, 64.9% use search retargeting, 29.8% use creative retargeting, and 26.1% use email retargeting (Nikolovska, 2021).

Retargeting Challenges

As trendy and effective as it seems, retargeting still presents a couple of challenges to marketers, especially when it comes to using it to keep up with mobile marketing trends. It can be difficult to measure marketing attribution in mobile due to the lack of reliable cookies on mobile. Nevertheless, marketers are seeing results and we can surmise that the strategy of mobile marketing will continue to be a big part of retargeting strategies in the future.

• What stops marketers from retargeting on mobile? Not having an app (34%), not having a mobile site (27%), not liking mobile ad UX (24%), unreliable mobile analytics (17%), and not believing their customers are mobile (13%) (Creadits, 2019).
• Mobile retargeting remains a challenge for marketers. Only 8% said they were “very successful” in meeting their objectives with mobile retargeting. 29% said they were “successful,” while 45% indicated they were “somewhat successful.” (Plomion, n.d.)
• 90% of marketers consider attribution important or critical to success, but 1 in 3 aren’t clear on how to track it (IAB. n.d.).
• Consumers are multi-device and multi-platform—yet 58% of marketers still use single-touch attribution (IAB. n.d.).

Retargeting frequency

In addition to the abovementioned challenges, there’s also the matter of finding the right balance in the frequency of your retargeted ads. While we cited that a quarter of online shoppers enjoy retargeted ads and the majority of consumers are neutral about them, businesses still shouldn’t go overboard as retargeting statistics show that sentiment can quickly turn sour. It seems retargeting occurrences that go beyond six times or more a week might actually cause your customers to just ignore your ads because they’re already too familiar with the brand.

• What do consumers think about retargeting? 25% of online shoppers enjoy retargeted ads, 11% are averse to the practice, and 60% have neutral feelings (Lazar, 2020).
• 53% say one occurrence of remarketing per week is acceptable, while only 19% say twice a week is acceptable. The rate drops precipitously, with only 5% being happy with six or more remarketing attempts a week (Marketing Charts, 2019).
• Consumers don’t like seeing retargeting ads but like them if they help reduce prices. 38% of consumers said they actually liked retargeting because it allows them to find a better price later on or from a different seller (Marketing Charts, 2019).
• Consumers prefer shorter times for retargeting attempts. 39% accept attempts of 1 day, 24% accept 2-3 days, while 21% accept up to a week of retargeting. Only 17% tolerate retargeting attempts of 2 weeks or longer (Marketing Charts, 2019).
• Retargeting is also better for some categories than others. 37% of consumers say it’s ok in the apparel category, while 35% say it’s acceptable for electronics. Only 6% find retargeting acceptable for financial products (Marketing Charts, 2019).

Latest Trends in Retargeting

Retargeting is an ever-evolving digital marketing strategy, and businesses need to keep up with emerging trends to maximize their impact. Here are some of the latest trends shaping the future of retargeting:

• Dynamic Retargeting Ads: One of the most powerful trends is using dynamic retargeting ads. These ads automatically adjust based on the viewer’s past interactions with your brand, showing them specific products or services they viewed or added to their cart. This highly personalized approach improves conversion rates by delivering highly relevant content to potential customers.
• Machine Learning and AI Integration: Machine learning and AI play a larger role in retargeting, helping marketers predict customer behavior more accurately. By analyzing vast amounts of data, these technologies can fine-tune the timing, targeting, and type of ads shown to individuals, improving efficiency and better campaign performance.
• Cross-Platform Retargeting: Cross-platform retargeting is becoming crucial for customers to engage with brands across multiple platforms. Marketers are using tools to retarget users on social media, websites, mobile apps, and email, ensuring that customers see a consistent and cohesive message no matter where they are.
• Video Retargeting: Video ads are becoming increasingly popular in retargeting campaigns. Studies have shown that video ads, especially those personalized for the viewer, can significantly boost engagement and conversions. Whether through social media or display ads, video has become a dynamic medium for retargeting.
• Increased Focus on Privacy: As privacy concerns grow, retargeting platforms adapt to comply with new regulations such as GDPR and CCPA. Marketers are finding ways to use retargeting while balancing customer privacy by adopting better consent practices and more transparent data usage.
• Personalized Email Retargeting: Email retargeting continues to thrive as brands use it to re-engage customers who have previously interacted with their website or products. Personalized email offers, such as reminders about abandoned carts, can help close sales by targeting individuals based on their previous actions and preferences.

Is Retargeting Right for Your Business?

If you’re in the retail business or you’re running your own ecommerce website, you can certainly benefit from retargeting ads. Not only is the retail industry one of the best places to implement retargeting but it’s also a sector where customers actually accept retargeting and might even find it helpful in their purchase. Meanwhile, there are certain industries that do not significantly benefit from retargeting, such as the tech industry and finance. However, this doesn’t mean that it is something you should no longer explore. After all, the effectiveness of your retargeting campaign still heavily depends on the browsing behaviors of your target market.

Remember to also tread carefully when it comes to retargeted ads. Too many times and too long of a period can backfire and cost you to lose even more customers or be totally ignored by your prospects. We recommend reading more about digital marketing trends to learn more about different strategies such as podcast marketing and other strategies you can combine with retargeting.

Key Insights

• High Visitor Loss: 97% of visitors do not return to a website, emphasizing the need for effective retargeting strategies.
• Positive Consumer Reception: 30% of consumers have a positive opinion of retargeted ads, and 38% like seeing these ads if they help them get better deals.
• Increased Budget Allocation: 50% of marketers plan to increase their remarketing budgets in the next six months, and 68% of digital marketing agencies are allocating more funds to retargeting.
• Improved Click-Through Rates: Retargeted ads have a click-through rate of 0.7%, ten times higher than regular display ads.
• Significant Conversion Boost: People who see retargeted ads are up to 70% more likely to convert, and retargeting can increase web traffic by 700%.
• Preferred Retargeting Platforms: Google Display Network (GDN) and Facebook are the primary platforms for placing retargeted ads, with GDN reaching 90% of internet users worldwide.
• Challenges in Mobile Retargeting: Mobile retargeting faces hurdles such as the lack of reliable cookies, and only 8% of marketers report being very successful in mobile retargeting.
• Consumer Preferences: Consumers prefer shorter retargeting periods, with 39% accepting attempts within 1 day, and only 17% tolerating retargeting attempts of 2 weeks or longer.
• Industry Suitability: Retail is the most suitable industry for retargeting, with apparel and electronics being the most acceptable categories for consumers.

FAQ

1. What is retargeting and why is it important?
   Retargeting is a digital marketing strategy that involves showing ads to people who have previously interacted with your website or app. It is crucial because it helps keep your brand top-of-mind for potential customers, increasing the chances of conversion when they are ready to make a purchase.
2. How effective is retargeting compared to regular display ads?
   Retargeting ads are significantly more effective than regular display ads, with a click-through rate of 0.7%, which is ten times higher than the average CTR for display ads at 0.07%.
3. What percentage of digital marketing budgets is typically allocated to retargeting?
   Digital marketers spend about 41% of their paid display ad budgets on retargeting, and 71% of marketers allocate between 10% to 50% of their entire online ad budget to retargeting.
4. What are the main challenges in implementing mobile retargeting?
   The main challenges include the lack of reliable cookies on mobile, not having an app or mobile site, poor mobile ad user experience, and unreliable mobile analytics.
5. Which platforms are most effective for placing retargeted ads?
   The most effective platforms for retargeted ads are the Google Display Network (GDN), which reaches 90% of internet users worldwide, and Facebook, which has over 2.7 billion active monthly users.
6. How do consumers generally feel about retargeted ads?
   Consumer sentiment towards retargeted ads is mixed; 30% have a positive opinion, while 38% appreciate these ads if they help them find better deals. However, excessive retargeting can lead to negative feelings.
7. What industries benefit the most from retargeting?
   The retail industry benefits the most from retargeting, particularly in categories like apparel and electronics. Other sectors like tech and finance do not see as significant benefits but can still explore retargeting strategies.
8. How does retargeting impact web traffic and conversions?
   Retargeting can increase web traffic by up to 700% and make consumers up to 70% more likely to convert, making it a highly effective strategy for boosting online engagement and sales.
9. What are the preferred retargeting strategies among marketers?
   Site retargeting is the most preferred strategy, used by 87.9% of marketers, followed by search retargeting (64.9%), creative retargeting (29.8%), and email retargeting (26.1%).
10. How should businesses approach the frequency of retargeting ads?
    Businesses should avoid excessive retargeting as it can lead to consumer fatigue. Optimal retargeting frequency involves making one retargeting attempt per week, with decreasing acceptance for more frequent attempts.

References:

1. AppsFlyer (2020). The State of App Retargeting – 2020 Edition. Retrieved from AppsFlyer
2. Ascend2 (2020). Agency Trends: Strategies & Tactics. Retrieved from Ascend2
3. Costello (2019). Marketing Metrics: Consumers 70% More Likely to Convert with Retargeting. Retrieved from Kenshoo
4. IAB, (n.d.). State of the Industry. Retrieved from IAB
5. Jalali (2020). Facebook Retargeting Ads. Retrieved from Era of Ecom
6. Lazar (2020). Use These Awesome Remarketing Facts to Power Your Reach in 2020. Retrieved from Ready Cloud Suite
7. Mailchimp (n.d.). Google Remarketing. Retrieved from Mailchimp
8. Marketing Charts (2019). How Consumers Feel About Remarketing. Retrieved from Marketing Charts
9. Nikolovska (2021). Retargeting: Is It a New Digital Marketing Trend? Retrieved from Truelist
10. Pilipenko (2021). 10 Retargeting Statistics You Need To Know in 2021. Retrieved from Meazy
11. Plomion (n.d.). New Data: Retargeting Industry Facing New Challenges as Growth Continues. Retrieved from Convince & Convert
12. Rosenfelder (2020). App remarketing drives 50% more paying user. Retrieved from AppsFlyer
13. Saleh (n.d.). Ad Retargeting in Numbers – Statistics and Trends. Retrieved from Invesp
14. Statista (2021). Number of monthly active Facebook users worldwide as of 4th quarter 2020. Retrieved from Statista

By Jenny Chang

Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.