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Why Remarketing Campaigns Are Necessary for Businesses

In today’s digital landscape, getting visitors to your website is only the first step. Many users leave without completing the desired action, whether it’s making a purchase, filling out a form, or contacting your business.



remarketing ads funnel


This is where remarketing campaigns play a crucial role. Remarketing allows you to re-engage those users and gently remind them about your products or services, increasing the chances of conversion.


Remarketing is especially important because it targets users who have already shown interest in your business, making them more likely to convert than cold prospects. It is a cost-effective way to improve ROI by reducing the overall cost per acquisition and boosting conversion rates.


Top Categories of Businesses in India That Benefit from Remarketing

  1. Ecommerce (Apparel, Electronics, etc.)

  2. Real Estate

  3. Travel & Tourism

  4. Healthcare & Medical Tourism

  5. Education & Coaching

  6. Automobiles

  7. Financial Services

  8. Local Services (Salons, Restaurants, etc.)


These businesses often deal with high competition and lengthy decision-making processes, making remarketing essential to nurture potential customers over time.


Minimum Audience Sizes & Eligibility for Remarketing

To run a remarketing campaign, there are minimum audience requirements on different ad platforms. Here's a breakdown:

Platform

Minimum Audience Size

Eligibility Requirements

Google Ads

1000 active users (last 30 days)

Users must have visited your website, or engaged with your app.

Meta Ads (Facebook/Instagram)

1000 active users (last 30 days)

Users who visited your website, watched videos, or engaged with posts.

A Simple Remarketing Funnel

  1. Prospecting: The first stage involves generating new visitors through Google Search Ads.

    • Example: An Indian ecommerce business runs search ads, bringing in 3000 visitors at a cost-per-click (CPC) of ₹50.

  2. Remarketing: You target 1000 of those 3000 visitors with Meta Ads (Facebook/Instagram) at a lower CPC of ₹20 to re-engage and convert them.


Cost & Conversion Rate Calculation Example

Let's calculate for an Indian ecommerce business with a lead generation goal.


Prospecting Campaign (Google Ads Search)

Metric

Value

Total Visitors (Prospects)

3000

Cost-per-Click (CPC)

₹50

Total Cost (Prospecting)

₹150,000

Conversion Rate (2%)

2%

Total Leads from Prospecting

60

Cost per Lead (Prospecting)

₹2,500

Remarketing Campaign (Meta Ads)

Metric

Value

Total Remarketing Audience

1000

Cost-per-Click (CPC)

₹20

Total Cost (Remarketing)

₹20,000

Conversion Rate (5%)

5%

Total Leads from Remarketing

50

Cost per Lead (Remarketing)

₹400

Overall Campaign Results

Metric

Value

Total Campaign Cost (Prospecting + Remarketing)

₹170,000

Total Leads (Prospecting + Remarketing)

110

Average Cost per Lead (Overall)

₹1,545

Why This Approach Works

By first prospecting and then remarketing, businesses can lower their cost per lead while increasing overall conversion rates. In this case, while prospecting leads cost ₹2,500, remarketing leads are far cheaper at ₹400. Combining both, the average cost per lead drops to ₹1,545, making the campaign more efficient.


Facts & Stats About Prospecting & Remarketing Conversion Rates

  • Remarketing ads are 70% more likely to convert than prospecting ads.

  • Prospecting conversion rates range from 1% to 3% on average.

  • Remarketing conversion rates are higher, typically between 3% to 10%.

  • Customers who see retargeted ads are 43% more likely to convert than those who do not.


In conclusion, remarketing helps businesses maximize their investment in prospecting ads by re-engaging users who are already familiar with their offerings. It’s a powerful tool for improving conversions and reducing overall acquisition costs, making it essential for ecommerce, lead generation, and other high-competition industries.

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