What Is Retargeting In Digital Marketing? How Does It Work?

Sep 15, 2021 1:13:13 PM | Digital Marketing What Is Retargeting In Digital Marketing? How Does It Work?

Retargeting is a great tool for businesses to re-engage these visitors who have the potential of becoming customers. This can help boost conversion rates and improve sales for any business.

There may be several visitors coming to your website daily. However, very few actually end up purchasing any products or services you offer. According to statistics, 97% of people who visit your website for the first time leave without buying anything. Retargeting campaigns remind your visitors of your products or services after they have left without purchasing. 


According to MoroCMS, retargeting reduces cart abandonment rate by 6.5%. Retargeting is a great tool for businesses to re-engage these visitors who have the potential of becoming customers. This can help boost conversion rates and improve sales for any business. Many marketers and advertisers leverage retargeting campaigns to remind visitors about the products or services that can be useful to them. In this article, we will discuss what retargeting is in digital marketing and how it can be useful to your business.


What is Retargeting in Digital Marketing?


Retargeting reminds your potential customers about your products or services after they leave your website without purchasing. With retargeting you can show these visitors relevant ads when they visit other sites. Retargeting can be done with apps, search, and website banner ads. It is a great tool to re-engage customers who may have forgotten about your businesses and boost your sales.


Why is Retargeting Important?


  • Retargeting is great for businesses who already have a traffic flow to their website. If a business has at least 100 visitors in a month, then investing in Google retargeting ads is a good option.


  • Brands can also promote their best-selling or new products through retargeting ads. Promoting your products that are best liked by your previous customers can get the attention of new visitors and influence them to purchase.


  • With retargeting you can segment your audience based on their interests and behavior to target them accordingly. This enables you to create advertisements that are relevant to your audience so that it drives more sales.


  • Retargeting ads can help remind you audiences about your brand. These are the people who have already shown interest in your products or services and are most likely to convert.


How Does Retargeting Work?


Tag-based retargeting


Retargeting uses cookie-based technology that uses JavaScript code to track the visitors all over the Web. If you use Google ads, then you just need to add your retargeting code known as the tag or pixel to your website. This way your website visitors get added to retargeting audiences through browser cookies. This code can be customized for different pages when you segment your audiences based on their interests. For example, ecommerce businesses can create remarketing audiences based on any of their products. Then you will find out which users are looking for that specific product and create ads accordingly.


Google retargeting ads are shown to your website visitors when they browse the internet on various Google partner sites in the Google Display Network. Initially with your first retargeting campaign, Google recommends targeting everyone who has been on your website. But this can increase costs and your ads won’t be targeted. However, when you create targeted campaigns as you go, you will be able to make them more relevant with low cost per click.


List-based retargeting


List-based retargeting works when you have already added someone’s contact information in your database. In this type of campaign, you can use your existing list of contacts for certain retargeting ads. Upload a list of the email addresses to a retargeting campaign and the platform will identify these users with those email addresses and serve them the relevant ads.


A list-based retargeting campaign allows you to create highly targeted ads because you can select the contacts which are likely to re-purchase from your brand. However, these campaigns require some manual work as you must maintain the list and update. Hence, list-based retargeting is less automated and timely compared to tag-based retargeting.


Retargeting Vs Remarketing Campaigns


Both retargeting and remarketing focus on achieving similar goals, however, with different approaches. The goals include:


  • Creating brand-awareness and building long-term connections.
  • Targeting people already interested in a product
  • Re-engage audiences to boost sales.


The tactics used to achieve these goals are different. Retargeting primarily uses paid ads to target audiences who have been on your website or social media profiles. Whereas remarketing uses email to target people who have already purchased from your brand.


Along with using Google ads there is also email retargeting and social media retargeting ads that you can leverage in your digital marketing efforts.


What is Email Retargeting?


Email retargeting is when you use insights you gained about your prospects or customers to send them personalized emails. This type of campaign is effective to reduce cart abandonment. If a customer has added items to the cart and left, you can send them emails to remind them of the products they liked.


Email retargeting can also be useful to upsell your products to existing customers. You can send them offers or updates to repurchase or upgrade any plans. These customers are likely to repurchase from you, especially if you send them a personalized email and offer them more value for their money.


What is Social Media Retargeting?


Social media retargeting uses audience data to show ads to users who have visited your website. This helps to get users' attention and them back to the website where they can convert or purchase from you.


Social media retargeting can be beneficial as many consumers use various social platforms. People like following their favorite brands on social media and many consumers purchase by clicking on ads. Most of the time consumers are going through social media posts and these platforms can be a great way to influence their behavior. Facebook retargeting ads can be used to reach a wide range of audiences on this platform. This platform collects user data and helps you target the leads you lost on your website.


Businesses can make a lot of profit by reaching billions of people who actively use social media. Social media retargeting can be a part of your digital marketing efforts to help you engage with lost leads and influence them to become customers.


Now that you are familiar with retargeting you know all the various options that are available to leverage this strategy. You can retarget your customers or prospects through emails or track your website traffic and use targeted ad campaigns on Google or social media. The type of retargeting and platform you choose depends on what works for your business. You can use all these strategies at once or work with one at a time. Assess your business goals and budget to know what will work best for you.


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Written By: Akshata Shirsath