Behavioral retargeting (also known as behavioral remarketing, or simply, retargeting) is a form of online
targeted advertising
Targeted advertising is a form of advertising, including online advertising, that is directed towards an audience with certain traits, based on the product or person the advertiser is promoting. These traits can either be demographic with a focu ...
by which
online advertising
Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to promote products and services to audiences and platform users. ...
is targeted to consumers based on their previous internet behaviour. Retargeting tags online users by including a
pixel
In digital imaging, a pixel (abbreviated px), pel, or picture element is the smallest addressable element in a raster image, or the smallest point in an all points addressable display device.
In most digital display devices, pixels are the ...
within the target webpage or email, which sets a
cookie in the user's browser.
Once the
cookie is set, the advertiser is able to show ads (often display ads) to that user elsewhere on the internet via an
ad exchange
An ad exchange is a technology platform that facilitates the buying and selling of media advertising inventory from multiple ad networks. Prices for the inventory are determined through real-time bidding (RTB). The approach is technology-driven as ...
.
Dynamic creative (also known as personalized retargeting), allows an advertiser to display a banner created on-the-fly for a particular consumer based on specific pages that they viewed. For example, if a consumer visits an advertiser's website and browses products A, B, and C – they will then be retargeted with a display banner featuring the exact products A, B, and C that they previously viewed. This is typically restricted to the visitor's browsing on a single website.
A refined version improves on re-engagement with customers. If a customer begins an online order, for example, but fails to complete it, a flag indicates they had an interest in the product being ordered. Later, ads showing the product of interest can be custom-linked to point back into the
order system. When the user clicks on the ad, they are returned to their incomplete order.
Types
While all retargeting depends on setting cookies in a user's browser, there are several different methods of doing this:
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Site retargeting
Site retargeting is a display advertising technique used by marketers to display advertising to people who have previously visited their website. The marketer includes a pixel within their webpage which sets a cookie in the user's browser.
That c ...
*
Search retargeting
Search retargeting is a form of retargeting employed by online marketers that target an audience based on the previous searches they conduct on other websites. Unlike site retargeting, search retargeting is designed to find new customers which ha ...
*
Link retargeting
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Email retargeting Email retargeting can refer to either:
* Retargeting an audience with display ads after they have read an email from the advertiser (Display-Ad Based)
* Emailing a website visitor after their website visit (Email-Based)
Email retargeting is a com ...
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Social retargeting
Pricing
Retargeting ad campaigns usually run on lower cost media, such as
display ads, which not only increases effectiveness by specifically targeting an interested audience, but also improves the overall
ROI of the advertiser. A common use-case of retargeting is situations where a website visitor's actions did not result in a sale or
conversion
Conversion or convert may refer to:
Arts, entertainment, and media
* "Conversion" (''Doctor Who'' audio), an episode of the audio drama ''Cyberman''
* "Conversion" (''Stargate Atlantis''), an episode of the television series
* "The Conversion" ...
.
Retargeting providers employ a variety of pricing models to charge advertisers for the ads viewed by consumers. Three prominent models include:
* CPM (
Cost per mille
Cost per mille (CPM), also called cost per thousand (CPT) (in Latin, French and Italian, ''mille'' means ''one thousand''), is a commonly-used measurement in advertising. It is the cost an advertiser pays for one thousand views or impressions of ...
or cost per thousand)
* CPC (cost per click)
* CPA (cost per action)
Cost per impression
Cost per impression (CPI) and cost per thousand impressions (CPM) are terms used in traditional advertising media selection, as well as online advertising and marketing related to web traffic. They refer to the cost of traditional advertising or ...
(CPM) is a common metric used in the online advertising industry to charge advertisers for inventory based on a set price per thousand-page impressions. An impression is defined as any time a banner ad loads on an individual's web browser.
Pay per click
Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher (typically a search engine, website owner, or a network of websites) when the ad is clicked.
Pay-per-click is usually ...
(PPC) charges advertisers for every verifiable click that leads consumers back to a retailer's website. Unlike the CPM model, which charges advertisers a flat rate, advertisers working under the PPC model are only charged when a person clicks on an ad.
Cost per action
Cost per action (CPA), also sometimes misconstrued in marketing environments as cost per acquisition, is an online advertising measurement and pricing model referring to a specified action, for example, a sale, click, or form submit (e.g., conta ...
(CPA) is a pricing model in which advertisers are charged based on pre-arranged action (a purchase, a view through, etc.), although a completed sale is the most common action used under the CPA model.
Concerns
In the United States, several organizations, including the
Federal Trade Commission, Congress and the media, have expressed privacy concerns around the practice of retargeting; however, responsible personalized retargeting providers don't collect
personally identifiable information (PII) on consumers. Providers should be blind to a user's age, sex and other personal information. Instead, providers rely upon data gathered from cookies that are placed on a consumer's browser by the websites they visit. This information should not be shared among publishers, other advertisers or third parties and cannot be linked to a specific user. The United States has not legislated many laws around the practice, and instead relies upon the industry and its overarching organizations, such as the
Interactive Advertising Bureau
The Interactive Advertising Bureau (IAB) is an American advertising business organization that develops industry standards, conducts research, and provides legal support for the online advertising industry. The organization represents many of th ...
,
Network Advertising Initiative
The Network Advertising Initiative is an industry trade group founded in 2000 that develops self-regulatory standards for online advertising. Advertising networks created the organization in response to concerns from the Federal Trade Commissio ...
and
TRUSTe TrustArc (formerly TRUSTe) is a privacy compliance technology company based in San Francisco, California. The company provides software and services to help corporations update their privacy management processes so they comply with government laws a ...
to self-regulate. In October 2010, the IAB announced its Advertising Option Icon, which partner sites will place near banner advertisements that collect non-PII user data.
In the EU, the 2002
ePrivacy Directive and its 2009 revision require opt-in consent for the use of cookies and stipulate that users must be given the option of opting out.
See also
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Behavioral targeting
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Link retargeting
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Site retargeting
Site retargeting is a display advertising technique used by marketers to display advertising to people who have previously visited their website. The marketer includes a pixel within their webpage which sets a cookie in the user's browser.
That c ...
References
{{reflist
Web analytics
Ethically disputed business practices
Advertising techniques
Internet privacy
Mass surveillance