When you’re trying to grow a business it’s easy to get caught in the trap of yo-yoing between growth strategies: “We need to reach as many people as possible, no one knows we exist!” “No! Focus on improving our store/deals/customer support and let’s get more out of the traffic we already have!”.
But the good news is, for online stores, Facebook and Instagram ads have the power to attack both strategies at the same time, with minimal effort and maximum impact.
We’ve seen it ourselves reflected in the aggregate store data of the Brainity platform. Our tool creates Facebook advertising funnels to help e-commerce stores attract new visitors and retarget those who express interest. We routinely see purchase rates jump anywhere from 2 to 16 times higher when stores start running our sophisticated ad funnels that blend prospecting and retargeting campaigns.
In this article, we will specifically cover Facebook and Instagram retargeting, to make sure you have the information you need to put them to work to grow your business. We will cover the following topics:
- How Facebook and Instagram retargeting ads work
- How to know when to start retargeting your e-commerce traffic
- Common mistakes that cause retargeting campaigns to fail
- How to integrate retargeting into high-level advertising strategies
How Facebook and Instagram retargeting ads work
The reason most people speak about Instagram and Facebook retargeting at the same time is because they are both managed from the Facebook ads manager and utilize the Facebook Pixel. The Facebook Pixel makes it easy to track your store’s visitors and segment them based on the specific products they view on your site.
Because the retargeting audience you create has already interacted with your store and demonstrated interest, it’s possible to increase personalization. Dynamic Ads for instance, make it possible to create and serve ads showcasing the exact product a user viewed.
How to know when to start retargeting
Despite retargeting ads’ potential, there are two frequent obstacles; the store’s current number of visitors and the price point of the products sold.
There is not a universally agreed-upon minimum amount of traffic a store needs or an exact price point that will ensure that a store will get a ROAS boost from retargeting. But new stores with low traffic or stores with very low priced items need to approach the retargeting campaign creation process a little differently.
What if I have low traffic?
Stores need approximately 600 visitors per week to begin retargeting campaigns. This means that before starting retargeting you will need to increase the number of visits to your page. If this is your case, check out the final section of this article for advice on growing your website traffic.
What if I have low-cost items?
For stores that sell extremely low priced items, there are a few tricks to keeping retargeting costs effective. To ensure the Customer Acquisition Cost (CAC) is covered by the revenue of the item purchased, they could exclude visitors of low price product pages from their retargeting audiences. Or they can attempt to retarget low-cost product viewers to bundles or upsell to more expensive but similar items.
For this reason, it’s important to calculate your Break Even CAC and know how much you can spend while still turning a profit. You can easily calculate your Break Even CAC with our free online calculator.
Common mistakes that damage retargeting campaigns
The most common mistakes when building retargeting campaigns occur either during the campaign’s configuration or at the strategy level.
Be careful to configure a limit for the number of times you show retargeting ads to each prospective customer. You should also set the correct budget so you don’t increase your CAC or annoy uninterested visitors with repetitive content.
The Brainity platform for instance, creates different campaigns for multiple desired website events. It then sets the right ad serving frequency and budget to ensure the retargeting campaign doesn’t overwhelm the audience. The sophisticated campaign structure makes it possible to send unique retargeting messages to prospective customers, throughout their customer journey.
How to integrate retargeting into advanced advertising strategies
Even though this article has focused on personalized product retargeting, it is most powerful when integrated into a cohesive advertising strategy. At Brainity we see the biggest benefits for our e-commerce clients when they do customer journey retargeting.
Customer journey retargeting means sending different ads depending on what stage the customer is at in their buyer journey. For instance, you can build a segmented audience and send personalized messages from visitors that:
- 1. Read your content
2.Check out your catalog
3.View a specific item
4.Abandon their cart
Every action taken by a prospective client helps to identify their interests and gauge their readiness to make a purchase. The Brainity platform makes it is easy to create segmented campaigns that send different, contextual, and personalized ads based on those actions.
But it’s only possible to take advantage of the increased purchase rates of retargeting if you have enough visitors to retarget. Which is why the Brainity platform also balances your budget between campaigns to reach new audiences and retarget. It analyzes your store’s campaign performance and correctly allocating spending between each campaign.
With sophisticated customer journey advertising and intelligent budget allocation, Brainity makes sophisticated advertising easy. Not only attracting new traffic, but retarget interested prospects to take advantage of every opportunity.