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What is Retargeting in Marketing and How Does It Work

Retargeting in Marketing

If you've worked in the digital marketing or online advertising industry for a while, you're probably familiar with the many touchpoints that make up a consumer journey.

Customers travel through various steps before making a purchase, as you are aware.

According to the latest research, only 3% of site visitors make a purchase.

This presents a problem for business owners and marketers in terms of how to get site visitors to buy their products or services.

Unless you can bring back visitors who come to your site for the first time but leave without purchasing anything, they will be lost forever.

Retargeting is one of the most successful strategies to attract users to return to your website. It is a crucial tool for today's marketers to interact with customers, generate sales, and establish customer loyalty.

But what exactly is retargeting, and how does it influence prospects and customers to buy?

Retargeting Meaning

As a business owner, you already know that advertising is critical for keeping your company ahead of the competition and driving more sales.

Customers, on the other hand, aren't always ready to make a purchase for a variety of reasons. Retargeting is one technique to remind them of their initial interest in your products or services.

Retargeting is a sort of digital advertising that allows companies to keep their brand in front of bounced visitors.

It's a marketing tactic that enables organizations to reach out to website visitors who don't convert right away.

Brand retargeting allows you to remind customers of your company and entice them to return to your website or app to finish their purchase.

Retargeting is the practice of contacting customers who have previously visited your website or app after they have left.

It allows you to retarget your leads and consumers by giving them the exact same product or relevant adverts on other websites they visit.

The Process of Retargeting

So, what exactly is retargeting and how does it work?

Cookie technology is used in retargeting to track your audience throughout the internet. It's a programmed approach to reaching out to your target audience.

It works with a variety of digital marketing channels, including paid search, display advertising, email, and social media. Google Ads, Facebook retargeting, LinkedIn Ads, and other retargeting marketing technologies can be used to run retargeting campaigns.

How Does Retargeting Work?

Customers need to feel like they know and understand your brand before they decide to buy.

As a result, retargeting is extremely effective in terms of increasing brand trust and loyalty.

When someone comes to your website to see what you have to offer, retargeting begins to function.

Once he leaves your website, he will start to see your ads on other pages he visits. He is reminded of your products, so he returns to your store to buy.


You can use retargeting to present an ad for the product he just viewed on another website he visits if a potential consumer abandons a shopping cart without completing the order.

There's a better probability of meeting your marketing and revenue goals if you show your products again through an advertisement.

Let's look at it more closely.

John, a frequent shopper, uses his computer to browse the products on your website.

He looks at a few goods and adds a few to his cart before leaving without checking out his order.

A few days later, John is browsing her phone and comes across an advertisement for the product he saw on your site, as well as some other connected things he hadn't seen before.

He is then reminded of your company's name. He returns to your website or app, intrigued by the advertisement, to look at the products and other offers before making a purchase.

This is retargeting in action.

Retargeting vs. Remarketing: What's the Difference?

Retargeting and remarketing are similar in that they both strive to turn prospects into paying clients.

They differ, however, in how they approach audiences or prospects.

What is the difference between retargeting and remarketing?

Retargeting is a type of paid advertising that is used to target people who have visited your website or social media pages.

It uses display retargeting advertisements and native adverts on other websites and apps to try to entice site visitors to buy.

Remarketing, on the other hand, primarily employs email as a technique to target customers who have already transacted with you. It tries to entice users to return to your site via email.

Retargeting and Its Importance

Retargeting is vital since it keeps your brand in front of the customer's mind. Most importantly, it is a tried-and-true method for attracting new clients and growing sales.

For the reasons listed above, retargeting is an important marketing technique.

1. Brand Recall

Retargeting reminds potential buyers and former clients about your company, products, and services on a regular basis. It keeps you in touch with them and keeps you top of mind.

2. Customized Marketing

Retargeting helps to display your products or services to clients who are already interested in your brand, resulting in a more personalized relationship between you and your customers.

3. Improved Conversion Rates

When a potential consumer is ready to buy, the retargeting strategy guarantees that the brand is visible.

The Cost of Retargeting

Your retargeting campaign's cost is largely determined by your marketing budget. It depends on the amount of each ad placement and the amount of money you have set aside.

Of course, the value you receive is determined by the price model used and your unique objectives.

Retargeting campaigns are typically given on a cost-per-thousand-impressions (CPM) or cost-per-click (CPC) basis.

If your objective is to increase brand awareness, CPM is the way to go, but CPC is the way to go if you want to increase sales revenue because you only pay when someone clicks on the retargeting ad.


Retargeting is without a doubt one of the most successful digital marketing strategies for increasing sales conversions and ROI since it focuses on customers who have already expressed interest in your brand.

However, retargeting is most effective when used as part of a bigger digital marketing campaign.

What’s your favorite digital marketing strategy? Tell us your thoughts below.

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