With limited ad budgets, relevant and targeted advertising becomes essential.
Geographic and demographic targeting on the internet serves web ads based on location, age, sex, income, education level, etc. This allows any size company to target a message to a tighter geography surrounding its location. It can also allow a company with an erratic footprint or service area to focus on sending a message to specific areas/zip codes it services. This affords an advertiser the luxury of building some frequency of message to a specific target audience, delivering a better ROI. An important note to remember is that many people work at a different location than they live and the bulk of internet traffic happens during the work day.
Retargeting is a form of internet targeted advertising by which online advertising is delivered to consumers based on their prior internet actions which did not result in a sale or conversion.
Retargeting is based on where the user “was.” Ads then follow users to subsequent sites to reinforce message, bring a user back or make a new offer.
Example: Kathy recently visited the Walmart website. With retargeting, Walmart ads follow Kathy to increase her likelihood of purchasing from Walmart.
Most likely, a company has spent marketing dollars to get a customer to their site in the first place, so the term retargeting is derived from the concept of marketing to them again.
Some studies suggest that a company needs to have seven different “contacts” with a customer (on average) before they make a purchase. Retargeting allows a company to continue its marketing conversation with a customer after leaving the website.