What is Retargeting

Updated Feb 4, 2025

Retargeting is a digital marketing strategy that aims to re-engage users who have previously interacted with a website or online content but did not take the desired action, such as making a purchase.

Retargeting Meaning

Retargeting involves tracking website visitors with the use of browser cookies or pixels, which collect data about their online activities. That data is then used to show targeted ads to those visitors when they visit other sites. This is why you often see ads for products or services you browsed online. Marketers primarily use retargeting to boost conversion rates and remind potential customers about their interests in specific products or services.

How Retargeting Works

Understanding how retargeting operates is essential for leveraging its benefits. When a potential customer visits a website, a piece of code known as a pixel is activated, capturing their behavior without storing any personal data. This pixel serves as a digital reminder or bookmark, ensuring that when this user navigates to various other sites, the company's ads are strategically displayed to remind the user of their initial interest.

Why Retargeting is Effective

Retargeting in advertising is noted for its effectiveness, primarily because it reaches users who are already interested in a brand or product. It can dramatically increase conversion rates because these individuals have previously interacted with the brand. The repeated exposure to ads encourages users to come back and consider making a purchase. Retargeting also allows marketers to reconnect with an audience segment that has shown prior engagement, essentially increasing the opportunity for conversions from those who have wandered away.

Types of Retargeting

There are various types of retargeting strategies, each with a unique focus. Site retargeting specifically hones in on users who have visited a company's website. Meanwhile, search retargeting targets users who have entered specific search queries, aiming to capture interest at the moment of intent. Social media retargeting reaches users on popular platforms like Facebook and Instagram after they’ve engaged with a brand’s online presence. Each method facilitates a customized approach based on user behavior and preferences.

Retargeting vs. Remarketing

It's important to address the distinction between retargeting and remarketing, terms often used interchangeably. While both aim to re-engage previous visitors, retargeting typically refers to digital and display-based tactics, while remarketing often involves using email campaigns to reach out to visitors who previously engaged with an email list or a brand's online platform.

The Future of Retargeting

Retargeting is expected to evolve alongside advancements in digital technology and changes in consumer behavior. With growing concerns about data privacy and the implementation of more stringent regulations, advertisers must develop innovative methods to balance retargeting effectiveness and respect for user privacy. Furthermore, with the dynamic capabilities of artificial intelligence, personalized ad experiences are becoming more common, offering users tailored content that aligns closely with their preferences.

When implemented effectively, retargeting can lead to higher conversion rates and improved brand recognition, making it a valuable asset in any digital marketing strategy.