Retargeting | Definition, Types, Examples, Strategy, Advantages & Disadvantages

What is Retargeting ?

Retargeting is a digital marketing strategy that involves displaying targeted advertisements to users who have previously interacted with a website or a specific piece of content. Retargeting designed to re-engage users who have previously visited a website but left without completing a desired action, such as making a purchase. The process involves placing a small piece of code, commonly known as a cookie or pixel, in the user's web browser when they initially interact with the website. This code enables the tracking of the user's online behavior, such as the pages they viewed or the products they showed interest in.

When the user leaves the website, retargeting platforms use the collected data to identify and track these users as they browse other websites or social media platforms within the retargeting network. Based on the user's previous interactions, personalized ads are then strategically displayed to them. For instance, if a user looked at a specific product on an e-commerce site, they may encounter ads featuring that same product when visiting other online platforms.

The goal of retargeting is to keep the brand or product at the forefront of the user's mind, encouraging them to return to the original website and complete the desired action. By delivering tailored and relevant content, retargeting seeks to enhance brand visibility, rekindle interest, and increase the likelihood of conversion. While effective, it's crucial for advertisers to implement retargeting campaigns thoughtfully to strike a balance between staying top-of-mind and avoiding user frustration due to excessive ad exposure. When executed strategically, retargeting can be a valuable component of a comprehensive digital marketing strategy.

How Does Retargeting Work ?

Retargeting works by leveraging tracking technology to identify users who have previously interacted with a website or engaged with specific content. Here's a step-by-step explanation of how retargeting typically works:

1) Visitor Interaction:

When a user visits a website, a small piece of code, often called a "pixel" or a "cookie," is placed in their browser. This code is provided by the retargeting platform or advertising network used by the website.

2) Cookie Placement:

The cookie collects information about the user's behavior on the website. It can track pages viewed, products or services looked at, and other actions taken (such as adding items to a shopping cart).

3) User Leaves the Website:

If the user leaves the website without completing a desired action (such as making a purchase or filling out a form), the retargeting system comes into play.

4) Ad Display Criteria:

Advertisers define specific criteria for displaying retargeted ads. For example, they may create an ad campaign targeting users who visited a particular product page but did not make a purchase.

5) Retargeting Platform Identification:

When the user visits other websites or platforms that are part of the retargeting network, the retargeting platform recognizes the user based on the cookie stored in their browser.

6) Ad Display:

The retargeting platform then serves targeted ads to the recognized user. These ads are usually displayed on other websites or social media platforms that participate in the retargeting network.

7) Personalized Content:

The content of the retargeted ads is personalized based on the user's previous interactions with the website. For example, if a user viewed a specific product, the ad may showcase that product to encourage the user to revisit the site and complete the purchase.

8) Encouraging Return Visits:

The primary goal of retargeting is to re-engage users, reminding them of the products or services they showed interest in. The hope is that by seeing relevant ads, users will be more likely to return to the website and complete the desired action.

9) Conversion Tracking:

Retargeting platforms often provide tools for advertisers to track the effectiveness of their campaigns. This includes monitoring conversion rates, click-through rates, and other metrics to assess the success of the retargeting efforts.

Definition of Retargeting

While there may not be specific definitions by individual authors, various experts in digital marketing and advertising have provided insights into the concept. Here are some interpretations:

1) Google Ads:

"With retargeting, you can show ads to people who have visited your website or used your mobile app. Previous visitors or users can see your ads as they browse websites that are part of the Google Display Network, or as they search for terms related to your products on Google."

2) Neil Patel:

"Retargeting is a cookie-based technology that uses a simple JavaScript code to anonymously 'follow' your audience all over the Web."

3) HubSpot:

"Retargeting is a form of online advertising that can help you keep your brand in front of bounced traffic after they leave your website."

4) WordStream:

"Retargeting is a type of online advertising that helps you keep your brand in front of bounced traffic after they leave your website."

5) Digital Marketing Institute:

"Retargeting is a form of online advertising that enables sites to show targeted ads to users who have already visited their site."

6) Criteo:

"Retargeting is a way to re-engage shoppers who have visited your website but did not make a purchase."

7) AdRoll:

"Retargeting is a form of online advertising that targets users who have previously visited your website but didn't convert."

Types of Retargeting

Retargeting can be implemented in various ways to achieve specific marketing objectives. Here are some common types of retargeting strategies:

1) Standard Retargeting:

• Description: Displays ads to users who have visited your website but did not convert or take a desired action.
• Use Case: Encourages users to return and complete a purchase, sign up for a newsletter, or engage with specific content.

2) Dynamic Retargeting:

• Description: Shows personalized ads to users based on their previous interactions with your website, featuring products or content they viewed.
• Use Case: Effective for e-commerce sites, dynamically displaying the exact products users showed interest in to increase the likelihood of conversion.

3) Email Retargeting:

• Description: Sends targeted email campaigns to users who have interacted with your website but did not complete a desired action.
• Use Case: Encourages users to return to the website, complete a purchase, or engage with specific content through personalized email communication.

4) Search Retargeting:

• Description: Targets users with display ads based on their search behavior on search engines.
• Use Case: Reaches users who have searched for relevant keywords related to your products or services but may not have visited your website.

5) Social Media Retargeting:

• Description: Displays retargeting ads on social media platforms to users who have visited your website.
• Use Case: Reinforces brand awareness and encourages engagement on social media by targeting users who have already shown interest in your brand.

6) Video Retargeting:

• Description: Targets users with video ads based on their previous interactions with your website or specific video content.
• Use Case: Encourages users to watch more videos, engage with content, or revisit the website by delivering relevant video ads.

7) Contextual Retargeting:

• Description: Displays ads on third-party websites that are contextually relevant to the content the user is currently viewing.
• Use Case: Reaches users with ads related to their interests or the content they are browsing, even if they haven't visited your website.

8) Segmented Retargeting:

• Description: Targets specific segments of your audience based on various criteria, such as demographics, location, or behavior.
• Use Case: Customizes retargeting campaigns for different audience segments to increase relevance and engagement.

9) Cart Abandonment Retargeting:

• Description: Targets users who have added products to their shopping cart but abandoned the checkout process.
• Use Case: Prompts users to return and complete the purchase by displaying ads featuring the products in their abandoned cart.

10) Cross-Device Retargeting:

• Description: Targets users across multiple devices, ensuring consistent and coordinated retargeting efforts regardless of the device they use.
• Use Case: Provides a seamless user experience, recognizing and retargeting users on different devices they use to access your website.

Examples of Retargeting

Here are a few examples of retargeting in action:

1) Abandoned Shopping Cart:

• Scenario: A user visits an e-commerce website, adds items to their shopping cart, but leaves the site without completing the purchase.
• Retargeting: The user sees ads featuring the products they abandoned in their cart when browsing other websites or social media platforms.

2) Product Page Visit:

• Scenario: A user visits a specific product page on a retail site but doesn't make a purchase.
• Retargeting: Ads for the viewed product or related items appear on other websites or social media platforms the user visits, encouraging them to return and make a purchase.

3) Content Engagement:

• Scenario: A user reads a blog post or views specific content on a website without taking further action.
• Retargeting: Ads promoting additional content, related products, or special offers are displayed to the user across various online platforms to re-engage their interest.

4) Event Registration:

• Scenario: A user clicks on an event registration page but doesn't complete the registration process.
• Retargeting: Ads reminding the user about the upcoming event and prompting them to complete the registration are shown on other websites or social media platforms.

5) Video Views:

• Scenario: A user watches a video on a streaming platform but doesn't take any additional action.
• Retargeting: Ads related to the video content, such as products featured in the video or related services, appear during the user's subsequent online activities.

6) Email Interaction:

• Scenario: A user opens an email from a brand but doesn't click on any links.
• Retargeting: Ads featuring products or offers mentioned in the email are displayed when the user browses other websites or social media platforms.

7) Cross-Sell or Up-Sell:

• Scenario: A user makes a purchase on an e-commerce site.
• Retargeting: Ads showcasing complementary or upgraded products are shown to the user, encouraging them to make additional purchases.

Retargeting Strategy

Developing an effective retargeting strategy involves careful planning and consideration of various factors. Here's a step-by-step guide to creating a retargeting strategy:

1) Define Campaign Goals:

Clearly outline the objectives of your retargeting campaign. Whether it's recovering abandoned carts, promoting specific products, or increasing brand awareness, defining goals helps shape the rest of your strategy.

2) Identify Target Audiences:

Segment your audience based on their behavior on your website. Create audience segments such as visitors who abandoned carts, those who viewed specific product pages, or those who engaged with certain content.

3) Implement Tracking Pixels:

Install retargeting pixels on your website. These pixels track user behavior and help identify visitors for retargeting. Most advertising platforms, like Google Ads or Facebook Ads, provide tracking pixels.

4) Set Campaign Budget and Duration:

Determine the budget for your retargeting campaign and set a duration. Consider factors such as the length of your sales cycle and the frequency of ad exposure to avoid ad fatigue.

5) Create Compelling Ad Content:

Develop visually appealing and compelling ad creatives. Highlight the value proposition, use eye-catching imagery, and include a clear call-to-action. Tailor the content to the specific segment you are targeting.

6) Select Retargeting Platforms:

Choose the advertising platforms where you'll run your retargeting campaigns. Popular choices include Google Ads, Facebook Ads, Instagram, Twitter, and other display ad networks.

7) Utilize Dynamic Retargeting:

For e-commerce businesses, consider implementing dynamic retargeting. This involves showing personalized ads featuring the exact products users viewed on your site, enhancing relevance and increasing the chances of conversion.

8) Set Frequency Caps:

Avoid overwhelming users with too many ads. Set frequency caps to control how often your retargeting ads are shown to a user within a specific time frame, preventing ad fatigue.

9) Design Landing Pages:

Ensure that the landing pages users are directed to after clicking on retargeting ads are relevant and optimized for conversions. A seamless user experience is crucial for campaign success.

10) Monitor and Analyze Performance:

Regularly monitor the performance of your retargeting campaigns. Track key metrics such as click-through rates, conversion rates, and return on ad spend. Use this data to make informed adjustments to your strategy.

11) Optimize and Test:

Continuously optimize your retargeting strategy based on performance insights. Test different ad variations, audience segments, and messaging to identify what resonates best with your target audience.

12) Comply with Privacy Regulations:

Ensure compliance with privacy regulations such as GDPR or CCPA. Clearly communicate your data usage and provide options for users to opt out of retargeting if they wish.

It's important for businesses to implement retargeting strategies carefully to avoid being intrusive or annoying to users. When done effectively, retargeting can be a powerful tool to increase brand awareness, engage potential customers, and drive conversions.

Advantages of Retargeting

1) Increased Conversion Rates: Retargeting helps bring back visitors who have shown interest in a product or service, increasing the likelihood of conversion.

2) Targeted Advertising: Allows for highly targeted advertising based on users' previous interactions, providing more personalized and relevant content.

3) Brand Recall: Reinforces brand awareness by keeping the brand in front of potential customers even after they've left the website.

4) Cost-Effective: Can be a cost-effective advertising strategy as it focuses on users who have already shown interest, potentially leading to higher ROI.

5) Improved Ad Effectiveness: Since retargeting targets users who are familiar with the brand, the ads may be more effective in capturing attention and driving action.

6) Customizable Campaigns: Offers flexibility in creating specific campaigns for different audience segments, tailoring content to different stages of the customer journey.

7) Performance Tracking: Provides detailed analytics and insights into user behavior, allowing for the measurement of campaign effectiveness and optimization.

Disadvantages of Retargeting

1) Ad Fatigue: Users may experience ad fatigue and find repetitive ads annoying, potentially leading to a negative perception of the brand.

2) Privacy Concerns: Some users may be concerned about the use of tracking cookies and the collection of their online behavior data, raising privacy issues.

3) Limited Reach: Since retargeting focuses on users who have previously visited a website, it may have limited reach compared to broader advertising strategies.

4) Ineffective for New Audiences: Not suitable for reaching new audiences who have not interacted with the brand before, limiting its scope for acquiring new customers.

5) Dependency on Website Traffic: The effectiveness of retargeting depends on having a significant amount of website traffic to retarget, which may be a limitation for new or small businesses.

6) Potential for Ad Blockers: Some users may use ad blockers, preventing retargeting ads from being displayed, reducing the campaign's effectiveness.

7) Misinterpretation of Intent: Retargeting assumes user intent based on previous behavior, which may not always accurately reflect the user's current needs or interests.

Retargeting vs Remarketing

Retargeting and remarketing are terms often used interchangeably, but they can have slightly different meanings depending on the context. Here are the general differences between retargeting and remarketing:

Differences	Retargeting	Remarketing
Definitions	This term is typically associated with online advertising and refers to the practice of displaying targeted ads to users who have previously visited a website or interacted with a brand in some way. It involves using cookies to track user behavior and serve relevant ads across the web.	This term is more broad and can encompass various marketing strategies aimed at re-engaging with potential customers who have interacted with a brand. While remarketing can include tactics like email marketing or personalized content, it is often used interchangeably with retargeting when discussing online advertising efforts.
Objectives	Mainly aims to bring back visitors who didn't convert during their initial visit to a website by showing them targeted ads.	Has a broader objective of re-engaging with users across various touchpoints, not limited to just advertising, with the goal of nurturing leads and encouraging conversions.
Scope	Specifically focuses on online advertising efforts and involves displaying ads to users on other websites after they have visited a particular site.	Encompasses a broader range of strategies, which may include email campaigns, personalized content on a website, or other methods of re-engaging with users who have shown interest in a product or service.
Channels	Primarily associated with display ads and can extend to social media platforms where targeted ads are displayed to users based on their previous online behavior.	Can involve multiple channels, including email, social media, and content marketing, in addition to display ads.
Advertising Methods	Involves serving ads to users based on their online behavior and interactions, typically through the use of cookies.	Encompasses a wider range of techniques, including email campaigns, personalized content, and other methods to reconnect with users who have engaged with a brand.
Timing of Engagement	Often associated with immediate or short-term efforts to bring users back to a website shortly after their initial visit.	Can involve ongoing efforts over a more extended period, nurturing leads and building relationships over time.
Customer Interaction	Centers around displaying ads to users as they browse other websites after leaving the original site.	Involves multiple forms of interaction, such as sending follow-up emails, providing personalized content on the website, or engaging users on social media.