Retargeting: Helpful or Annoying to Consumers?

Ever wonder why after visiting a site just once, ads for the site suddenly seem to be showing up on every other site you visit?

The answer to your question lies in a marketing strategy called retargeting, which focuses on bringing potential customers back to a site after they have already visited it. A javascript tag embedded in the website generates a list of people by placing anonymous retargeting “cookies” in their browser.

Then retargeting companies are further able to segment visitors by tracking what they viewed while on the site. For example, if you looked at shoes, then it would be in best practice to show ads for shoes.

One retargeting company, Adroll, states that retargeting works by “converting window-shoppers into buyers.” While I am all for finding more shoes similar to the ones I have been coveting while online-shopping, I also think there are potential problems with retargeting.

For one, retargeting calls into question the never-ending discussion of privacy limits on the web. While retargeting offers a great way to keep track of potential consumers, it also may be seen as an invasion of privacy by visitors. It is possible that the average shopper will get annoyed that every time they visit a site, they will start seeing numerous ads.

According to retargeter.com, “for most websites, only two percent of web traffic converts on the first visit. Retargeting is a tool designed to help companies reach the 98 percent of users who don’t convert right away.”

While the goal to increase effectiveness of advertising by targeting only those who have already shown some interest in the products or company makes sense, I think the new strategy should be used with some caution. For example, companies should take ad placement and frequency into consideration and avoid annoying potential customers too much.