In 2015, marketers spent more budget on Facebook retargeting, and with good reason. Their impression reach doubled, their cost-per-actions reduced by 33%, and the research also suggests that they achieved this without annoying consumers.
If you’re looking to see a higher ROI from Facebook, we recommend considering Facebook retargeting ads as part of your marketing strategy.
How Do Facebook Retargeting Ads Work?
If you’re on Facebook, you’ve likely seen retargeting, but may not be sure how it works.
Let’s say you visited Nordstrom.com, clicked on a product page, decided not to buy the product, and left the website. Fifteen minutes later you go on Facebook, and see an ad in your News Feed from Nordstrom, maybe even featuring the same product you were considering. You’ve been retargeted.
Marketers use Facebook to generate a simple code snippet that can be placed on their website or a webpage. When you, the consumer, visited the website or webpage, it put a cookie into your browser, and when you visited Facebook, the cookie identified you and showed you the ad in hopes that you will click it and return to the website.
It’s no secret that follow-up and repetition are critical to sales and marketing success. Retargeting is extremely efficient because (a) you’re advertising to people who have already shown interest in your brand and (b) you get to reach these people more than once.
In the U.S., B2B companies increased their average spend on Facebook retargeting by 51% in 2015, and retail companies invested an average of 26% more. We expect more brands to test Facebook retargeting in 2016, in the never-ending effort to increase ROI.