Data from digital marketing firm AdRoll finds that digital marketers are spending more of their online ad budgets on retargeting.
The study showed 71% of marketers spend 10-50% of their online ad budget on retargeting, an increase of 18 percentage points from 53% in 2013.
AdRoll worked with research firm Qualtrics to survey 1,000 U.S. marketers and to analyze data from retargeting campaigns from more than 11,000 AdRoll clients. Those campaigns tally more than 3.7 billion ad impressions a month. About 80% of the marketing spend through AdRoll’s platform is on retargeting campaigns, aiming ads at consumers that have visited a web site or added an item to a cart, for example.
14% of marketers report spending more than 50% of their online ad budget on retargeting, up from 7% in 2013. The percentage of marketers spending less than 10% shrank from 40% to 15% in 2014.
Marketers believe retargeting works, the survey suggests. 92% of marketers says retargeting performs the same as or better than paid search, while 91% say it performs as well or better than e-mail marketing. 92% say it performs the same as or better than other forms of online display advertising.
Respondents say they measure online advertising success by how much insight they gain into consumer behavior (55%), the sales conversion rate (55%) and a high return on investment (43%). B2B marketers valued insights into consumer behavior as the top measure of success, at 54%, while B2C marketers put sales conversions in the top spot with 57%.
Social media retargeting was the “hottest topic,” with 54% of respondents citing that issues, followed by 20% who pointed to mobile and cross-device retargeting. AdRoll data show marketers see impressions that are 2.84 times higher when showing retargeting ads on Facebook. The same marketers see 3.05 times more clicks and 2.18 times more conversions.
Despite it being viewed as a hot topic, only 51% of B2C marketers say they are retargeting consumers on mobile devices. That number jumps slightly when considering B2B marketers, with 57% say they are using mobile ads to retarget shoppers.
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