How Targeted Banner Advertising Works

Are you interested in utilizing targeted banner ads? Learn more about how this type of online advertisement works and how you can benefit from it.

Imagine this scenario: you go to a website to browse for a fishing pole and other fishing gear, but for some reason decide not to buy after all. You click out of the website and visit another unrelated one, when lo and behold; an ad for fishing poles and other related fishing gear have seemingly followed you. Sound familiar?

These days, it’s nearly impossible to go online and not find an ad (or two, or three!) on any website. But this new trend of online advertising that actually knows what you might be interested in can be a bit remarkable to some, and creepy to others. This is called targeted banner advertising, or remarketing or retargeting.

This kind of online advertisement serves banner ads to potential customers who have already been to your website, but for whatever reason has clicked out without buying or doing anything. The purpose of remarketing is to entice your visitors to come back to your website to complete an action, whether it’s to provide information, buy a product or avail of a service, or to sign up for a newsletter.

How it Works

This is the way remarketing works: when a consumer visits your website, a cookie is placed on their browser. When he or she clicks out of your online store without completing an action and proceeds to surf the Web, the websites they visit will then display your banner ads. You can be sure that only those who have already visited your website and have shown at least some interest in your products will see your ads.

This gives you a second chance to stay on top of the potential customer’s mind and offer your products or services that are likely to interest them, and convert them into buyers. If and when the customer decides to go back to your website and buy your product, you can continue to serve them targeted banner ads in the future. You can show any promotions, sales or discounts that you may be offering that will further lure them to your website repeatedly.

Reaping its Benefits

One of the benefits of targeted banner advertising is that it gives you an opportunity to build a deeper relationship with your potential customers, who will also become more familiar with your brand. You can be sure that your ads are highly relevant since they are only seen by those who have already been to your website and have an interest in your products and/or services. This increases the chances of converting visitors into buyers and repeat customers.

Potential Drawbacks

Many consumers and advocacy groups still have a real or perceived invasion of privacy when it comes to this type of online advertising. There are those who feel uneasy and think that targeted advertising is too aggressive in that the cookies are able to track their traits and online behavior.

Another aspect that advertisers need to consider is the fact that targeted advertising is usually more expensive than untargeted advertising.