What is Retargeting?
Retargeting is a digital marketing strategy that focuses on re-engaging users who have already interacted with your brand online but didn’t complete a desired action, like making a purchase, signing up for a newsletter, or filling out a form.
These users might have visited your website, browsed through your products, or perhaps even added items to their cart but didn’t take the final step.
Retargeting works to bring them back into the conversion funnel using tailored ads that nudge them closer to finalizing their action.
How does retargeting work?
At its core, retargeting relies on tracking technology such as browser cookies or tracking codes, which keep tabs on a user’s online activity. Here’s a simplified breakdown of how the process works:
- A visitor interacts with your website or app: For instance, someone may check out your website, browse through a product page, or add an item to the cart.
- A tracking pixel or cookie kicks in: A small piece of code installed on your website collects data about the user’s activity.
- The user leaves without completing the desired action: Maybe they get distracted, decide to think about their decision, or simply move on for now.
- Ads are displayed elsewhere: Retargeting tools use the data collected to serve specific ads to that user on other websites, social media platforms, or search engines, reminding them of your product or service.
For example, imagine a visitor browsing through a specific page on your site. A retargeting campaign could serve up ads highlighting that exact product on a platform like Instagram or Google. This personalized and contextually relevant advertising approach encourages users to return to complete the conversion.
Why is retargeting important?
Retargeting is a critical part of digital marketing because it allows businesses to re-engage prospects or leads they’ve already invested time and money into attracting. It's much more cost-efficient to bring back someone already familiar with your brand instead of generating brand-new leads.
Here’s why it’s essential:
- Increased conversions: Retargeting provides that extra push users need to convert. For example, a shopper may need multiple reminders before completing a purchase.
- Brand recall: Keeping your brand in front of potential customers helps build familiarity and trust over time.
- Personalized engagement: Retargeting allows for tailored messaging based on a user’s specific activity on your website. This personal touch can make your marketing efforts more relevant and impactful.
- Higher ROI: Since you’re targeting users who have already expressed interest, retargeting generally provides better returns for every dollar spent compared to broader ad campaigns.
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Types of retargeting
Retargeting can take many forms depending on the channels or goals of your campaign. Here are the most common types:
1. Pixel-based retargeting
Pixel-based retargeting uses a piece of JavaScript code, often called a pixel, that’s embedded on your site. Once visitors leave your site, this pixel data allows you to show targeted ads on other platforms or websites they visit.
- Great for website activity tracking.
- Highly customizable with detailed user behavior data.
2. List-based retargeting
List-based retargeting doesn’t rely on cookies but instead uses a contact list you already have. For instance, you may upload an email list to an ad platform like Facebook to serve retargeting ads to that specific group of people.
- Ideal for personalized campaigns targeted at known contacts.
- Requires users to have opted into email lists or other touchpoints.
3. Dynamic retargeting
Dynamic retargeting takes things a step further by offering hyper-relevant ads based on the exact products or services a user interacted with. For example, an ad might highlight the items a visitor placed in their cart but never checked out. This approach often drives higher conversion rates due to its relevancy.
4. Social media retargeting
Social platforms like Facebook, Instagram, or LinkedIn allow businesses to retarget users with ads based on their prior activity. Since these platforms have huge daily audiences, they’re a prime space to capture attention.
- Works well for visually driven campaigns.
- Enables engagement-driven content like comments and shares.
Best practices for an effective retargeting strategy
A good retargeting plan doesn’t just rely on displaying ads—it ensures those ads connect meaningfully with users. Here are some tips to make your campaigns more successful:
- Segment your audience: Not all visitors have the same needs or intent. Segment users based on actions like viewing a specific page, abandoning the cart, or signing up for a free trial.
- Use compelling visuals and copy: Your ads should grab attention while clearly delivering your message. Use high-quality, on-brand visuals and action-driven language.
- Set frequency limits: No one likes feeling bombarded by ads. Limit how often your retargeting ads appear to avoid annoying users.
- Test and optimize: Run A/B tests on different versions of your ads to see what resonates the most with your audience.
- Track and measure results: Monitor campaign performance metrics such as click-through rates (CTR), conversions, and return on ad spend (ROAS) to refine your strategy over time.
- Focus on the user experience: Pairing retargeting with a high-converting UI/UX design strategy ensures visitors have a frustration-free, engaging experience once they return to your site.
Retargeting vs. Remarketing: What’s the difference?
While "retargeting" and "remarketing" are often used interchangeably, there’s a slight difference:
- Retargeting focuses primarily on paid ads and relies on cookies or tracking to re-engage website visitors. It targets users who’ve engaged with your online presence in some way but didn’t complete the desired action.
- Remarketing typically refers to outreach through email campaigns to re-engage users already in your customer database.
Each method has its advantages, and combining them into a broader strategy can be incredibly effective.
Examples of retargeting in action
- E-commerce: A clothing brand might show ads for the exact items shoppers left in their cart with an enticing discount to encourage them to complete the purchase.
- SaaS platforms: A software company could serve ads reminding users of the benefits they were researching on a pricing or demo page.
- Hospitality: Travel companies use retargeting to show ads promoting flights, hotel stays, or destinations users have browsed for.
Tenet’s expertise in creating intuitive and conversion-driven custom solutions equips businesses to streamline strategies like retargeting.