What Is Retargeting

Retargeting is a digital marketing strategy that aims to re-engage potential customers who have previously interacted with a business online but haven’t yet converted. When a user visits a website, browses a product, or performs an action like clicking an ad but doesn’t complete a desired action (such as making a purchase or filling out a form), retargeting allows brands to show targeted ads to that user across other websites, social media platforms, or even within apps. The goal is to remind these users of their initial interest and encourage them to return and complete the conversion.

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1. How Retargeting Works

Retargeting typically works through browser cookies or pixel tracking:

Cookies: When a visitor lands on a website, a small piece of code (cookie) is placed on their browser. This cookie then tracks the user’s behavior, such as which pages they visited and what items they viewed.
Pixels: A pixel is a small snippet of code placed on a webpage that collects data on user interactions. When a user completes an action on the site, the pixel fires and collects data that can be used to create audience segments for retargeting.

Once the user leaves the site without converting, these tools allow businesses to “follow” them with retargeted ads on other platforms, like Google, Facebook, Instagram, and more. This continuous visibility reinforces brand awareness and increases the likelihood of conversion.

2. Types of Retargeting

There are several types of retargeting that businesses can use, depending on their goals and the stage of the customer journey:

Site Retargeting: Targets users who have visited a company’s website but didn’t convert. Ads are shown to these users on other sites to remind them of the products or services they viewed.
Search Retargeting: Targets users who searched for specific keywords related to the business but haven’t yet visited the site. This can help attract users who have shown interest in the industry or product category.
Social Media Retargeting: Uses platforms like Facebook, Instagram, LinkedIn, and Twitter to display retargeted ads to users who interacted with the brand or visited the website. Social media platforms offer highly customizable targeting options.
Email Retargeting: Targets users who opened or clicked on emails but didn’t take further action. By using email retargeting ads, brands can continue engaging these users with personalized content.
Dynamic Retargeting: Allows brands to display personalized ads featuring specific products or services a user viewed on the site. Dynamic retargeting is particularly popular in e-commerce, where businesses can show users exactly what they looked at previously.

3. Benefits of Retargeting

Retargeting offers numerous benefits, especially for businesses that rely on online conversions. Key advantages include:

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Improved Conversion Rates: Retargeting helps re-engage visitors who are already familiar with the brand, increasing the likelihood of conversion compared to targeting new users.
Enhanced Brand Awareness: Repeated exposure to a brand strengthens its presence in a user’s mind, making it more likely they will choose it when ready to purchase.
Higher Return on Investment (ROI): Since retargeting focuses on users who have shown interest, ads are more cost-effective, yielding higher conversion rates and ROI.
Personalized Ad Experiences: Retargeting allows for tailored messaging, such as displaying specific products viewed, personalized offers, or discounts, which can be more effective in driving conversions.
Boosted Engagement: Retargeting reminds users of their initial interest and encourages them to return to the site, thus increasing engagement rates.

4. Best Practices for Effective Retargeting

While retargeting is powerful, using it effectively requires strategic planning and careful management to avoid overwhelming potential customers:

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Segment Audiences: Divide users based on their behavior (such as those who viewed a product versus those who abandoned a cart) to tailor retargeting messages more effectively.
Set Frequency Caps: Avoid ad fatigue by setting frequency caps, which limit how often users see retargeted ads. Overloading users with too many ads can harm brand perception.
Use Compelling CTAs: Use clear, action-oriented calls to action (CTAs) that encourage users to complete the conversion. CTAs like “Finish Your Purchase” or “Get 10% Off” are effective for retargeting.
Leverage Dynamic Retargeting: Dynamic retargeting is particularly effective for e-commerce as it allows for personalized ads that showcase the exact products users viewed, creating a more relevant and engaging experience.
Incorporate Offers and Discounts: Special promotions, discounts, or free shipping offers in retargeted ads can encourage hesitant users to return and make a purchase.
Optimize for Mobile: Since users frequently switch between devices, ensure that your retargeting ads are optimized for mobile to capture audiences on the go.
Measure and Adjust Campaigns: Regularly monitor key performance metrics like click-through rate (CTR), conversion rate, and cost per acquisition (CPA) to assess campaign effectiveness and make necessary adjustments.

5. Retargeting Platforms

Several platforms offer retargeting solutions, each with its unique advantages and targeting capabilities:

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Google Ads: Allows for retargeting across Google’s vast Display Network, which includes millions of sites and apps. Google’s platform supports both standard and dynamic retargeting.
Facebook Ads: Facebook’s pixel-based retargeting enables highly customizable audience targeting on both Facebook and Instagram, leveraging the social platform’s extensive user base.
LinkedIn Ads: LinkedIn retargeting is effective for B2B companies aiming to reach professional audiences, offering unique targeting options based on job titles, industries, and more.
Twitter Ads: Twitter’s retargeting allows brands to reach users based on specific actions taken on their website or Twitter profile, ideal for increasing engagement with Twitter’s user base.
AdRoll: AdRoll is a dedicated retargeting platform that provides multi-channel retargeting solutions across websites, social media, and email, offering a comprehensive approach for businesses of all sizes.