What is Retargeting?
Retargeting is an online advertising strategy that involves showing personalized ads to users who have previously visited a website or interacted with a brand.
Typically, when a user visits a site without completing a desired action (like making a purchase or filling out a form), a small cookie is placed in their browser.
Later, as the user browses other websites, they are shown ads related to their earlier activity—helping to bring them back to complete the intended action.
What Are the Benefits of Retargeting?
- Increased Conversion Rates: Reaches users already familiar with the brand, increasing the likelihood of completing a purchase or action.
- Enhanced Brand Recall: Keeps the brand visible to users, reinforcing awareness and trust.
- Personalized Advertising: Delivers ads tailored to user behavior, improving relevance and engagement.
- Cost-Effective Marketing: Focuses ad spend on warm leads, maximizing return on investment.
How Does Retargeting Work?
1. Tracking User Behavior
When a visitor lands on your website, a tracking pixel or cookie logs their activity (e.g., viewed products, cart abandonment). This data helps segment audiences for future ads.
2. Ad Placement
Retargeting platforms (like Google Ads or Facebook Pixel) use this data to display relevant ads to users as they visit other sites, watch YouTube, or scroll through social media.
3. Customized Campaigns
Ads are tailored based on user actions—for example:
- Showing the exact product a user viewed but didn't buy.
- Offering a discount if they left items in their cart.
4. Conversion Optimization
By repeatedly exposing potential customers to your brand, retargeting gently nudges them toward completing a purchase.
How to Apply Retargeting in Ecommerce
Cart Abandonment Retargeting
Most ecommerce websites face cart abandonment rates above 70%. Retargeting these users with ads showing the products they left behind can significantly boost return visits and conversions.
Product View-Based Retargeting
If a user browses a product or a category without making a purchase, you can continue to engage them with ads that highlight the exact items they explored, encouraging them to return and complete the purchase.
Use Dynamic Product Ads (DPA)
Dynamic product ads automatically generate customized ad content for each user based on their browsing behavior. This tactic is particularly effective for large-scale ecommerce sites and is commonly used on platforms like Facebook and Instagram.
Combine Email and Ad Retargeting
Retargeting isn't limited to ads alone. You can also use email campaigns in tandem. For example, if a user signs up but doesn't buy, trigger personalized emails along with retargeted ads across platforms to maximize conversion potential.
FAQs
What is retargeting vs remarketing?
Retargeting uses online ads to reach people who visited your site. Remarketing often refers to email follow-ups. Both aim to bring users back, but the tools and channels are different.
What are the types of retargeting ads?
Common types include pixel-based ads, which show ads to recent visitors, and list-based ads, which use contact lists. Some ads are dynamic, changing based on the user's past activity or interest.
What is an example of retargeting?
You visit an online shoe store but don't buy. Later, while scrolling a news site, you see an ad for the same shoes. That ad is a retargeting ad reminding you to return.
