Video advertising has become a powerful tool for brands to influence consumers, with 84% saying it has a huge impact on their buying decisions. For advertisers, this shift towards video content presents an opportunity to connect with customers in a more engaging and memorable way. A particularly effective strategy is video retargeting, which uses the captivating nature of video to re-engage customers who have shown interest in your products.
This approach is now crucial for retailers looking to boost their online presence and sales. The good news is that it’s never too late to incorporate video into your selling strategy!
In this blog, we’ll explore the mechanics of video retargeting and show you how to leverage different types of videos to convert more online browsers into buyers.
Video ads represent huge retargeting opportunities
Research indicates that 87% of marketers have observed a direct increase in sales as a result of video ads. Additionally, 66% of consumers prefer short videos for learning about products, making video content a potent tool for shaping purchasing decisions.
Brands need to make customers feel secure in their buying decisions by clearly communicating the value and benefits of your product. Visual media, like images and videos, are the best way to get this message across.
When shopping online, customers usually look for 6 product images and 3 videos before making a purchase.
Adding videos to your website or online store is an easy way to improve the customer experience. Given the crowded digital landscape, you only have a fraction of a second to captivate site visitors. With 80% recall on video ads, integrating a video into your website or e-commerce listing could be the deciding factor in encouraging visitors to stay longer and explore what you offer.
How does video retargeting work?
Retargeting video ads seek to re-engage potential customers by seamlessly leading them back to the original site for purchase completion using tailored video content.
Video retargeting explained with an example:
Let’s take the example of Sarah, who visited an online bookstore. Pixel tracking monitors this activity, recording her genre preferences and browsing habits. Once she leaves the site, her activities on other platforms trigger a real-time video retargeting process.
This involves analyzing her intent to purchase, selecting relevant book suggestions, and creating a personalized video ad. The ad is dynamically generated based on Sarah’s interests and browsing behavior to re-engage her and guide her back to the store’s website to finalize her purchase.
The ad appears on various platforms she visits, featuring books that piqued Sarah’s interest. Clicking on the ad redirects Sarah to the bookstore’s site, encouraging her to complete a purchase. The success of this retargeting strategy is assessed through metrics such as engagement and conversion rates.
Types of video retargeting
VWAs (Video Watcher Ads): These ads are specifically displayed to users who have watched your video to create highly targeted campaigns. You can target those who have finished the video or based on the percentage watched (such as 75%, 50%, etc.). To use these ads, you’ll need a platform to track actions and viewing rates accurately.
VCAs (Video Content Ads): VCAs, or Video Content Ads, are ads displayed to users based on their actions on your site. They can be an effective way to engage with your target audience and promote your brand.
How retailers can use video retargeting to grow sales
Product listing ads
Having videos on product pages increases visitor session duration by 340%. By showcasing the value and uses of your products through videos, customers are more likely to remember and be drawn toward your brand. This not only boosts website traffic but also improves the overall customer experience. Plus, it’s a great way to stand out from competitors in the crowded online marketplace.
On online store
Product videos embedded on an e-commerce website increase page views per session by 127%. Customers can experience a visually rich shopping journey, re-engaging with products they have previously viewed or interacted with. This creates a more dynamic and personalized shopping experience and increases the likelihood of customers completing their purchases.
Responsive display ads
Video content in responsive display ads can be a powerful tool for capturing and retaining audience attention across different devices and platforms. These ads offer a flexible and interactive way to engage users by adapting to various screen sizes and platforms. This creates a dynamic and visually appealing experience that stands out from traditional static ads.
Third-party retail media sites
Video retargeting ads on external retail media platforms can help expand brand reach and reinforce messaging across various online shopping channels. This strategy allows businesses to maintain visibility and engage with customers at multiple touchpoints for a more cohesive brand experience.
Dynamic video retargeting: the next step
Dynamic video retargeting leverages the power of personalized video ad content tailored in real time based on a user’s previous online interactions and behaviors. For instance, a user who has browsed athletic shoes on a retail website might receive a video showcasing those specific products, possibly even in action.
This relevance ensures the ads resonate with the viewer, increasing the likelihood of engagement and conversion compared to traditional digital advertising methods. Since the ads cater to their interests and needs, users are more likely to respond positively and interact with the ad. This also leads to an enhanced overall user experience as the ads feel less intrusive and more natural within their browsing experience.
Additionally, this increased relevance has resulted in a higher return on ad spend (ROAS) as there is a higher likelihood of converting viewers into customers. With its cost-effective nature, dynamic video retargeting is an effective digital marketing strategy for agencies looking to automate tasks and scale their business faster with less effort.
Retailers who offer a variety of products and use customer segmentation can make use of dynamic video ads to create targeted remarketing campaigns. For example, a sportswear brand could tailor campaigns to different types of sports enthusiasts, ensuring that each group receives ads that are directly relevant to their interests.
Taking a proactive approach to implementing dynamic video retargeting can enhance the overall marketing strategy rather than simply reacting to changes. It should be an integral part of the initial campaign planning, enabling retailers to capture and maintain the interest of potential customers from the start.
As the retail market moves towards more personalized and user-centric marketing strategies, dynamic video retargeting helps position a brand as innovative and responsive to customer needs. This forward-thinking approach helps brands to stay competitive and meet ever-evolving consumer expectations. We have collated a list of best retargeting ads campaign examples to help you get started.
FCC is your perfect retail media partner
Flipkart Commerce Cloud offers end-to-end retail media solutions that help businesses unlock the full potential of the retail ecosystem. We Offer:
Marketplace Technology Stack: Our marketplace solution helps online and offline retailers and brands to launch and scale their online presence with advanced digital technology. Our platform has 40+ plug and play components for personalization, merchandising, catalog management, recommendation engines, seller and order management tools, inventory tracking systems, and warehousing technology for retailers to scale their online presence.
Retail Media Solution: Our ads engine is built from the ground up to understand the complete shopping journey and intent of the users. The platform uses advanced AI/ ML algorithms to place relevant, personalized ads for maximum CTR and better ROI on ad spends.
Retail Pricing Manager: Our cloud based pricing solution automates pricing decisions across channels with dynamic pricing, competitive intelligence, and price optimization. The platform uses machine learning models to learn price elasticity of demand from historical sales data and combined with game theory, it predicts how customers will respond to price changes and suggest optimal pricing strategies.
FCC’s retail solutions are scale-tested and globally implemented, catering to a wide range of markets across North America, South America, MENA, Africa, and Europe. This versatility makes it an ideal choice for businesses looking to expand their reach in different ways while maintaining the relevance and effectiveness of their ads.
Curious to know more about our retail media solution. Book a free consultation today!