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Businesses Are Hesitant to Invest in Retargeting: Despite its many benefits, businesses don't use retargeting because they fear a consumer backlash.

Businesses are skeptical of retargeting advertising, according to a survey from Clutch Research's The Manifest.

Among the 66 percent of all businesses that do use online advertising channels like social media, display, and paid search, fewer than half (43 percent) invest in retargeting advertising--advertisements aimed at consumers who have previously visited their websites or purchased their products.

Though the reasons for this vary, the overwhelming belief among businesses is that consumers see these ads as intrusive, the research finds.

"Maybe businesses don't want to appear too aggressive online to their consumers," speculates Jeremy Greenberg, founder of Chicago-based web design and digital marketing agency 97 Switch. "Businesses may worry that retargeting advertisements could bother customers."

Retargeting, however, can help businesses home in on customers who are already familiar with and interested in their companies and products and are, therefore, more likely to convert, the research suggests.

"Online advertising is important because it's where people spend their time," Greenberg said. "If you want to have mindshare over people, you need to be where they are."

Although most businesses avoid retargeting advertising, they typically use a combination of other channels. The top three are social media (86 percent), display (80 percent), and paid search advertising (66 percent).

Using these three channels enables businesses to reach the widest consumer base possible, according to Flynn Zaiger, CEO of Online Optimism, a digital marketing agency in New Orleans. "With all three, you can reach nearly all your likely customer population," he asserts.

Zaiger, like many, was surprised the numbers weren't higher. "Knowing that only two-thirds of businesses are doing online advertising means that just starting with an online marketing tactic can put you ahead of one-third of the competition," he says.

As an added bonus, online advertising helps businesses reach consumers more cost-effectively than traditional advertising. Compared to some channels, such as direct mail, online advertising is about one-tenth the price, according to the research

Among businesses that use online advertising, the top five goals are to increase sales (24 percent), improve brand recognition (18 percent), drive website traffic (16 percent), acquire new leads (13 percent), and convert customers (11 percent).

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Title Annotation:Insight
Author:Klie, Leonard
Publication:CRM Magazine
Date:Oct 1, 2018
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