TY - UNPB
T1 - Are You Still Interested in This Item? Field Evidence on the Effectiveness of Onsite Retargeting (under review)
AU - Tsekouras, Dimitrios
AU - Li, Ting
AU - Gong, Jing
PY - 2022
Y1 - 2022
N2 - Onsite retargeting serves as a product recommendation and targeting strategy predominantly used on the homepages of online retailers. This approach leverages customers’ prior interactions with retailers to curate recommendations on retailers’ own websites. It involves showcasing a product the customer has previously engaged with (the retargeted product) and suggesting related products (recommended products). Despite onsite retargeting’s potential for personalized customer engagement, little research has explored how its effectiveness varies according to the chosen retargeted product and how consumers react to retargeted (source) versus recommended products. In partnership with a prominent online retailer, we gathered data from a large-scale randomized field experiment to examine the effectiveness of wishlist-based retargeting (which is based on products on the consumer’s wishlist) in comparison to the widely implemented view-based retargeting (retargeting based on the products viewed by the customer). Our empirical findings suggest that wishlist-based retargeting is more effective in generating clicks and conversions for the retargeted products compared to view-based retargeting. However, the distinguishing effectiveness of wishlist-based retargeting decreases for product recommendations. We also found that the differential effectiveness between the two retargeting strategies for frequent buyers is less pronounced in generating clicks but more pronounced in generating purchases. Furthermore, interestingly, wishlist-based retargeting demonstrates increased effectiveness for higher-priced products in terms of click-through rates, though not for conversion rates. Finally, while the effectiveness of both retargeting methods generally decreases over time, wishlist-based retargeting shows stronger persistence. This work contributes to the retargeting and personalized recommendations literature and provides valuable insights for practitioners.
AB - Onsite retargeting serves as a product recommendation and targeting strategy predominantly used on the homepages of online retailers. This approach leverages customers’ prior interactions with retailers to curate recommendations on retailers’ own websites. It involves showcasing a product the customer has previously engaged with (the retargeted product) and suggesting related products (recommended products). Despite onsite retargeting’s potential for personalized customer engagement, little research has explored how its effectiveness varies according to the chosen retargeted product and how consumers react to retargeted (source) versus recommended products. In partnership with a prominent online retailer, we gathered data from a large-scale randomized field experiment to examine the effectiveness of wishlist-based retargeting (which is based on products on the consumer’s wishlist) in comparison to the widely implemented view-based retargeting (retargeting based on the products viewed by the customer). Our empirical findings suggest that wishlist-based retargeting is more effective in generating clicks and conversions for the retargeted products compared to view-based retargeting. However, the distinguishing effectiveness of wishlist-based retargeting decreases for product recommendations. We also found that the differential effectiveness between the two retargeting strategies for frequent buyers is less pronounced in generating clicks but more pronounced in generating purchases. Furthermore, interestingly, wishlist-based retargeting demonstrates increased effectiveness for higher-priced products in terms of click-through rates, though not for conversion rates. Finally, while the effectiveness of both retargeting methods generally decreases over time, wishlist-based retargeting shows stronger persistence. This work contributes to the retargeting and personalized recommendations literature and provides valuable insights for practitioners.
M3 - Working paper
BT - Are You Still Interested in This Item? Field Evidence on the Effectiveness of Onsite Retargeting (under review)
ER -