In this video interview, paid search expert Kevin Lee explains the concept of behavioral retargeting or remarketing. In a nutshell, when someone visits your site, this strategy sets an anonymous cookie, designating them as a prospect. Now as your visitors continue to surf the web, you continue to show them banner ads on various sites, thus increasing the chance that they'll return to your website and make a purchase.
If you get a 5% conversion rate from a lead or for a sale, you're doing pretty well. Buat that means that 95% of the people weren't interested or weren't ready to buy -- yet. But their demonstrated interest makes them a better prospect than average, thus it pays to "remarket" to them.
The banner ad network you work with (that is, your vendor) will show them your banner ad again and again because they see this cookie. The banners will be promotional, designed to "re-engage" the prospect and get them to click-through and return to your site.
However, some won't click-through, but do a new search because of the banner ads, what the industry calls a "view through" conversion.
Google is one vendor that has the ability to track a vew-through conversion for a combined search and display ad campaign. Other vendors may go under the name of a DSP (Demand Side Platform). You can find vendors by search on the terms "retargeting" or "remarketing."
Vendors charge in different ways:
CPM basis (cost per 1000) of $1 to $6 per thousand visitors
Cost Per Click (CPC, PPC) basis
View-through conversion basis
One problem with the view-through conversion basis, is that since they came to your site initially, they may already be your customers, so you don't want to pay a vendor for your own customers.
To get started, do you due diligence with the various providers. Remarketing ' retargeting works best when there are a lot of site visitors, because then the "cookie pool" is larger.
Kevin Lee is CEO and co-founder of Didit, an agency that efficiently manages paid search campaigns (and does remarketing) for enterprise-level clients. This interview was recorded at the Search Engine Strategies (SES) Conference in San Francisco, August 2010.