We’ve all had it happen to us before… You’re browsing for a new pair of shoes online and decide you don’t feel like buying them in that exact moment. So, you go back to work and forget all about it.
Then you get home, hop on the couch, and log in to Facebook for a little bit. You’re scrolling through your News Feed and suddenly you see an ad with that exact pair of shoes! The ad stands out like a sore thumb, because you immediately recall that you had been searching for them earlier in the day.
But how do they know? Are they listening through your device? Is this some kind of Big Brother thing?
This is actually a very common tactic used in the marketing world. It’s called retargeting, and it’s something that all Realtors should be using.
The definition of retargeting is fairly straightforward: you market to someone who has already shown an interest in your product or service…again (re).
For example, say you make a Facebook post about a new listing you have. If a user clicks on the link to that listing and it goes to your website, you are then able to track that person and market to them again across the internet.
There are a variety of reasons why this is a smart tactic, but let’s look at the more timely ones:
More cost effective
By now, many agents have likely discovered ways to market their business: lead ads on Facebook, billboards, or print ads. And there’s nothing wrong with those tactics, as they do work in a normal market.
However, as we’ve seen for the last few weeks, this is not a normal market. With uncertainty regarding stay at home orders, social distancing, etc., it is more important now than ever to interact with those that are serious and ready to buy or sell now.
To reach that type of client, it’s no longer feasible, or financially effective, to market broadly and hope for the best. A broad approach costs more money, and will likely result in a lower ROI.
Think of retargeting as a method of filtering these potential clients down, so that when real money is involved to target them, you already know that they have a certain level of interest in your services, and have a higher probability to be serious clients looking to act now – saving you time and money.
Higher conversion percentage
On the surface, retargeting ads are simply noticed more than a wide–net approach. Naturally, users identify with these ads more, and more quickly, because they serve as a reminder that the user had already viewed this content.
That’s why is should come as no surprise that retargeting ads are clicked, on average, 900% more than traditional display ads. That is a significant difference and one that Realtors should keep in mind – especially in times like this where money toward marketing should be spent wisely.
The most important difference, however, comes when comparing conversion rates – basically the main reason we do marketing in the first place, right? With retargeting, a study found that users were 70% more likely to convert from a retargeting ad than a traditional ad. A conversion can be anything from a contact form fill out, a phone call, or a scheduled meeting to look at a house.
So a more targeted audience, a message that resonates significantly more, and a higher probability of conversion than other tactics…all on a more controlled cost.
In an uncertain market like the one we are currently in, there are two schools of thought when it comes to marketing:
- Limit or even pause marketing altogether until things have settled, or…
- Recognize that there is still a need in the market for your services, and adjust accordingly
Each Realtor is going to approach this differently based on their situations, and if one feels that it is in their best interest to take a break from paid marketing, no one will question that. There are a variety of other “free” tactics that agents can still employ in the meantime, such as social posts, building out copy on their website, videos taken from their phones, etc. Those do work, and they help to maintain a presence in the market.
For the ones who want to continue their paid marketing, now more than ever there is less competition in that space. With retargeting, a tactic that for the most part is underutilized in the industry, you can differentiate yourself further by only spending money on those who have already expressed some sort of interest. That limits wasted dollars and increases your likelihood of standing out and converting more leads.
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Saleh, Khalid. “Ad Retargeting in Numbers – Statistics and Trends.” The Invesp Blog: Conversion Rate Optimization Blog, 11 Apr. 2018, www.invespcro. com/blog/ad-retargeting-2/.