Retargeting gone wrong
I’ve heard from enough companies who use retargeting to know they see a benefit from serving ads to people who left their sites without making a purchase. What I’ve always wondered, however, is how many people who are retargeted go from simply noticing that it’s happening to being unhappy about it. New research from InSkin Media and RAPP Media provides some insights.
According to the survey of 1,600 people in the UK between the ages of 20 and 60, only 10 percent are more likely to buy something after seeing the same ad served on multiple sites.
While 53 percent find initial ads "interesting and useful," increased exposure has a decidedly negative effect. After seeing the same ad five times, consumers begin to see it as "annoying." If they see the same ad 10 times, their annoyance turns to anger. Fifty-five percent of consumers say they have been put off from making a purchase because of retargeting activity.
"It’s a fine line to tread as brands potentially lose control through a perfect storm of increased automated buying and the specter of consumer cookie deletion," said Paul Phillips, RAPP’s head of media strategy, in a statement. "Marketers and planners are negligent if they don’t devote more careful planning around frequency caps and other contextual filters."
Another factor in how well retargeting goes over is where the ads are served.
"Along with understanding ‘how often’ and ‘when’, advertisers must pay more attention to ‘where’ — a big issue in programmatic buying," said Hugo Drayton, CEO of InSkin Media. "Ads perform better on premium, trusted or contextually relevant sites. As with too much repetition, ads served next to irrelevant content may have a negative impact on consumer purchase intent."
- Research: Consumers 37% more likely to click on an ad on a site they trust – InSkin Media
- Retargeted ads deter 55% of people from buying, says InSkin and Rapp Media report – The Drum
- Which Retargeted Ads Perform Best With Consumers – momentology
- Familiarity can breed contempt when it comes to ad retargeting – BizReport
Do you see more pluses or minuses to how ad retargeting is generally done today? What do you see as the keys to being successful with retargeted ads?