Retargeting uses cookie technology to link the user with a particular item that they have searched for online or put into their shopping cart, but then decided against it. According to Criteo, more than 90% of website visitors leave a site before making a transaction, making abandonment a huge problem for the industry.
Using cookie technology, advertisers can literally follow the customer from site to site with banner ads calling them back to the coveted item or service that they have rejected or to products that they have searched for in search engines. Many services, including Google who launched this service in beta last year, offer this capability to advertisers. While cookie technology is not new, the ability to tailor ads to consumers who either visit sites or who use search words for items is growing and so are the services to help marketers with this medium.For marketers, this is an opportunity to turn potential sales into definitive purchases and keeps their brand top of mind, while reengaging consumers who have shown an interest. Another plus is that it looks like you have an enormous ad budget when it reality most services use a cost per action (CPA) or cost per click (CPC) pricing model.
Consumers, on the other hand, are increasingly freaked out by what they believe is a blatant invasion of their privacy, as their preferences are played back to them over and over in blinking ads as they surf the net. Google is trying to allay those fears with their educational video designed to show consumers not only the reality but also offering an option to opt out.
Reality Check –Is it brilliant marketing or cyberstalking? What do you think? Are you running, hiding or jumping in with both feet?