Three in Four Merchants to be Retargeting in 2011

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Online remarketing techniques have been a hot topic of debate in recent weeks, including our own take on The Cost of Retargeting. Retargeted advertising has been the hot-button issue for marketers and consumers alike, but a new study indicates that the biggest increase in remarketing efforts this year will occur by way of retargeted emails – by a substantial amount.

An August 2010 survey by e-commerce solutions provider SeeWhy indicated that 74 percent of U.S. merchants will be engaging in email remarketing campaigns within 12 months, whereas only 34 percent are sending retargeted emails right now. The survey revealed that the jump in retargeted advertising will be much less significant, from 31 percent in August 2010 to 36 percent in August 2011.

The adoption or continuation of some type of remarketing strategy – the practice of reaching out to potential customers who have visited a website but left without engaging in a conversion activity, or possibly abandoned a conversion activity – was in nearly every merchant’s plans for 2011. Almost half of the respondents stated that they do not currently use any remarketing techniques, but almost all of them have plans to within the next 12 months.

Many marketers and retailers have lowered their shopping cart abandonment rates and increased conversions through different forms of remarketing. Providers of retargeting and geotargeting services and technologies abound throughout the industry, including Criteo, FetchBack and ChoiceStream, to name just a few. But the prevalence and frequency of retargeted ads on the Web has gained some attention from the mainstream media in recent weeks, leading to a fair amount of debate about the practice and even some concerns over consumer privacy.

A year ago, retargeting was identified in one report as the most underutilized advertising technology on the Internet, and today it has become one of the most talked about. The results of the SeeWhy survey tell us to expect remarketing to be an industry standard by this time next year, with retargeted emails leading the way.

 

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