What Is Retargeting?

Short Definition: Advertisements targeted toward users who have consumed your content and who you want to take a next step (such as a purchase or inquiry).

Retargeting, also sometimes referred to as remarketing, is an online advertising practice where ads are served to internet users based on the content they’ve browsed. For example, let’s say a shopper visits the website of a home goods retailer and looks at the product page for a handheld mixer. She doesn’t make a purchase right away, but the business can target her with ads for the handheld mixer. These ads can appear in various places while the shopper browses online, helping to keep the product and retailer top of mind.

How Does Retargeting Work?

There are two methods of retargeting: pixel-based and list-based.

Pixel-based is the most common method advertisers use to remarket to their site visitors. This method works by placing a small snippet of JavaScript code (aka a “cookie”) on a user’s browser when they visit your site. This code allows a remarketing platform to create a unique ID for the anonymous site visitor, and they can then use this ID to serve specific ads to the visitor based on the pages of your site they’ve viewed.

List-based retargeting requires you to already have a list of email addresses for the shoppers you want to reach. You can upload this list of emails to a platform that allows retargeting campaigns, such as Facebook or LinkedIn, and create your ads from there. List-based retargeting is less common than pixel-based because it requires you to have more information about your targeted audience, but it can be beneficial because it allows you to create highly customized ads.

Where Does Retargeting Take Place?

You can run retargeting ads on social media platforms like Facebook, Twitter, and LinkedIn. There are also third party remarketing platforms, such as Perfect Audience and AdRoll, that can run retargeting ads through the Google Display Network and other ad exchanges. This allows your targeted ads to show up on a wide range of sites, across all device types.

Benefits of Retargeting

Retargeting ads let you reach people who are familiar with your brand and have shown some interest in your products or services. It allows you to precisely target visitors with ads for offers that they’ve viewed rather than just running more general ads that might not have as big of an impact. Because the ads are personalized, they’re more likely to stand out. Three out of four consumers notice retargeting ads, and click-through rates are significantly higher for remarketing ads versus traditional paid search ads (0.7% vs 0.07%). That increased engagement translates to increased conversions. Some businesses have reported an increased conversion rate of up to 150% when implementing retargeting ads.