Retargeting Effectiveness – By The Numbers

Standard Retargeting on the web and mobile has been around for years and has always been slightly more effective than standard display advertising.  Programmatic Retargeting however has been known to be up to 10X more beneficial than display advertising. The Interactive advertising Bureau (IAB) has done studies with some crazy eye opening stats.

CTRs with retargeting, range from 0.30-0.95%, which is 3-10x higher than the industry average of about .10%. Sometimes even higher. In the pay per impression world of display ads, this kind of CTR is a huge gain.

The numbers show that marketers are taking full advantage of the benefits of retargeting.  In 2014, 71% of marketers spend 10–50% of their entire online ad budget on retargeting (up 34% from 2013).  Out of 1000 marketers surveyed by IAB, the following results on the success of retargeting were laid out.

92% retargeting performs same as or better than search

91% retargeting performs same as or better than email

92% retargeting performs same as or better than other display

As Matt Gittleman of YesWare said: “The possibilities of retargeting have turned it into one of the most cost-efficient and effective ways to attract new users and customers…”

Retail, which is where retargeting essentially began, still reigns at the top of the verticals that use it heavily.  As seen in these results though, more and more verticals are incorporating it into their strategy, as it is no longer just a tool to recapture cart abandoners:

Retargeting by Vertical

27% Retail

17% Media

10% Tech

10% Healthcare

9% Finance

8% Education/Gov.

5% Travel

4% Agency

10% Other

The future of Programmatic Retargeting is a bright one, with marketers still developing new methods and objectives:

Of the 1000 marketers surveyed by IAB, 28% said their goal for programmatic retargeting was to find a One-stop solution for the full customer buy cycle, flexibility was named by 26%, while expertise on one critical step of the customer buy cycle accounted for another 20% of their responses.

With these and more solutions coming into the fold of retargeting, and spend expected to increase by at least 25% in 2015, the numbers don’t lie: programmatic retargeting is as essential to online marketers as any other form of advertising.