Paper Number

1514

Paper Type

Complete

Description

Retargeting ads (RA) aim to convert customers who previously browsed the websites or abandoned shopping-carts. We exploit several randomized field experiments to test how the effects of RA vary depending on ad-copy content and purchase-funnel stages. Results suggest that compared to hold-out without retargeting, RA in lower funnel based on shopping-cart abandonment history significantly enhances purchase responses. The effects are driven by ad content that highlights product return information rather than product reminder or shipping information. Due to lack of touch/feel/trial of online orders, such ad-copy can nudge customers to try the products by reducing shopping risks and, thus, increase purchase rates. Net revenue for RAs with product return information is 49.7% larger than conventional RAs with product information. Also, lower funnel retargeting is 2.25 times as effective as upper funnel retargeting in lifting purchase rates. These findings indicate how to design RAs to recover abandoned carts and boost sales.

Comments

21-Digital

Download

Share

COinS
 
Dec 12th, 12:00 AM

Retargeting Ads for Shopping Cart Recovery: Online Field Experiments

Retargeting ads (RA) aim to convert customers who previously browsed the websites or abandoned shopping-carts. We exploit several randomized field experiments to test how the effects of RA vary depending on ad-copy content and purchase-funnel stages. Results suggest that compared to hold-out without retargeting, RA in lower funnel based on shopping-cart abandonment history significantly enhances purchase responses. The effects are driven by ad content that highlights product return information rather than product reminder or shipping information. Due to lack of touch/feel/trial of online orders, such ad-copy can nudge customers to try the products by reducing shopping risks and, thus, increase purchase rates. Net revenue for RAs with product return information is 49.7% larger than conventional RAs with product information. Also, lower funnel retargeting is 2.25 times as effective as upper funnel retargeting in lifting purchase rates. These findings indicate how to design RAs to recover abandoned carts and boost sales.

When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.