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Retargeting is the process of advertising to people that have already visited your website or who have taken certain actions on your website, like visit a particular page, add a product to their cart, bought a product or spent a certain amount of time on your website.
90% of the people that visit your website will leave without taking an action like buying a product or filling out a lead form. That means that you are leaving a lot of money on the table.
With retargeting you can stay top of mind, this is vitally important today, where the internet has made it easy to comparison shop.
How it works:
Remember on average it takes 5-7 exposures before a potential customer will convert. An effective strategy is to offer your website visitors special offers to get them to come back to your website and convert. For example 10% discount in the case of an ecommerce business or a free consultation in the case of a service based business.
My last point is not to spam people with your remarketing, you do not want your advertising to hurt your brand. If done correctly retargeting can build your brand, create credibility in the marketplace and drive sales.
Here is some more information on the topic of retargeting:
Google support article