Aditi Malhotra wrote an article for Insights by Stanford Business titled With “Retargeted” Advertising, Sooner Is Better Than Later.

« In the world of online marketing, this is known as “retargeted” advertising, and it has become ubiquitous. It works like this: When you visit an online store, the vendor places on your browser a cookie that ad exchanges can detect and use to push related ads onto other websites you visit or social media apps you use. The ads can be from the original vendor or one of its competitors.  »

« And they work — recent surveys have shown that some marketers are spending more than half of their digital ad budgets on retargeting. »

«  In a recent study, Stanford Graduate School of Business marketing professors Navdeep Sahni and Sridhar Narayanan … designed an experiment to measure the effectiveness of various retargeting campaigns  »

«  The first thing the researchers found was that retargeting works: Among users who exited the BuildDirect website after viewing a product page (as opposed to creating a shopping cart), the retargeted ad campaign increased their likelihood of returning to the site by nearly 15%. »

« Sahni and Narayanan also found that ads shown to users in the first week after their visit to the website were more effective than those shown in later weeks. In fact, about one-third of the effect of the first week’s advertising occurred on the first day, and half occurred in the first two days.  »

« The professors also found that such ads drive consumers back to the advertiser’s website even when they contain no additional information beyond what a consumer already learned in their initial site visit. »

However, Carl Panteny commented on Twitter that cookie blockers may soon undermine the effectiveness of retargeting.

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