Retargeting & Remarketing: A Comprehensive Guide / Part 1

Understanding the Basics

In today’s highly competitive digital marketing landscape, businesses face significant challenges in capturing and retaining the attention of potential customers. To address these challenges, retargeting and remarketing have become vital strategies. These approaches help brands stay relevant, increase visibility, and enhance conversions by utilizing insights into user behavior. By delivering personalized and relevant communications tailored to individual preferences, businesses can create a more engaging experience that resonates with their audience.

What is Retargeting?

Retargeting is a digital marketing strategy aimed at re-engaging users who have previously interacted with a brand but did not complete a desired action. It involves displaying targeted ads to these users as they browse other websites or platforms, with the goal of bringing them back to the brand’s site to complete the action.

1. Definition and Purpose of Retargeting

Retargeting is a highly effective digital marketing strategy designed to engage users who have previously interacted with your website or online platform but left without completing a desired action whether that be making a purchase, filling out a form, subscribing to a newsletter, or another conversion goal. The central idea behind retargeting is to reconnect with potential customers at the right moment, reminding them of your brand and its offerings in a way that prompts them to return and complete the action they initially intended to take. The core objective of retargeting is not only to re-engage users but also to increase conversion rates, improve the return on investment (ROI) of digital advertising efforts, and reduce the cost per acquisition by focusing on warm leads. These are people who have already demonstrated some level of interest in your products or services whether they visited a product page, added an item to their cart, or just browsed through your site for a while.

2. How Retargeting Differs from Remarketing

Retargeting and remarketing are often used interchangeably but serve distinct purposes. Retargeting leverages technologies like cookies and tracking pixels to follow users across the web, serving ads relevant to their previous interactions with your website. If a user views a product but does not buy it, retargeting can show them ads for the same product on other websites or platforms. Remarketing, however, focuses more on re-engaging existing customers or leads, typically via email campaigns. Retargeting is broader in scope, while remarketing is more personalized and relationship-driven.

What is Remarketing?

Remarketing is a digital marketing strategy that focuses on re-engaging users who have previously interacted with a brand. It uses targeted ads, emails, or other methods to bring these users back and encourage them to complete a desired action, like making a purchase. Remarketing helps increase conversions for potential customers.

1. Definition and Goals of Remarketing

Remarketing is a powerful digital marketing strategy designed to re-engage individuals who have previously interacted with your brand, whether as past customers, leads, or those who have shown interest in your products or services, such as by signing up for your newsletter, downloading an eBook, or adding items to their shopping cart. Remarketing enables businesses to maintain and strengthen connections with these individuals and encourage repeat interactions, conversions, and purchases.

The primary goal of remarketing is to reconnect with previous website visitors or engaged users to drive them back into the sales funnel and ultimately encourage them to take the desired action, such as completing a purchase, subscribing to an offer, or taking part in other valuable interactions. By re-engaging these warm leads, remarketing focuses on fostering customer loyalty and encouraging repeat business, which is often more cost-effective than acquiring new customers. Remarketing also plays a key role in brand retention. By targeting those who have already demonstrated an interest in your products or services, remarketing helps businesses build lasting relationships with customers, remind them of the value they received, and keep the brand relevant in their minds. As retaining existing customers is generally more affordable and efficient than acquiring new ones, remarketing represents an excellent return on investment (ROI) while driving long-term business growth.

2. Key Differences Between Retargeting and Remarketing

How Retargeting and Remarketing Work

Retargeting and remarketing both re-engage users who interacted with a brand but didn’t convert. Retargeting uses tracking cookies or pixels to display targeted ads to these users as they browse other platforms, while remarketing often involves personalized emails or messages. Both strategies aim to bring users back to complete a desired action.

The Retargeting Process

The retargeting process begins when a user interacts with a website but doesn’t convert, such as by abandoning a cart. A tracking pixel or cookie is placed on their browser to identify them. Users are then segmented based on their behavior, and tailored ads are created to appeal to their interests. These ads are displayed to users as they browse other platforms, encouraging them to return and complete the desired action. The campaign is continuously optimized for better performance, helping brands re-engage potential customers and boost conversions.

1. How Retargeting Tracks Website Visitors Using Cookies or Pixels

Retargeting works by embedding small pieces of code, known as cookies or tracking pixels, on your website. These tools collect information about user behavior, such as pages visited, products viewed, and time spent on the site. For example, when a user abandons their shopping cart, a cookie tracks this action, enabling advertisers to show them targeted ads later. Customers are 70% more likely to convert compared to non-retargeted users.

2, The Role of Ad Platforms

Ad platforms like Google Ads and Facebook Ads play a critical role in retargeting. These platforms allow businesses to set up campaigns that target users based on their behavior. For example, Google’s Display Network reaches over 90% of internet users globally, offering vast reach for retargeting campaigns. Similarly, Facebook Ads provide advanced targeting features, including custom audiences and lookalike audiences, ensuring your ads reach the most relevant users.

The Remarketing Process

The remarketing process starts when a user interacts with a brand, like visiting a website or abandoning a cart, but doesn’t convert. Their information, like email addresses or browsing behavior, is collected and used to segment them into specific groups. Personalized messages are sent to these users, highlighting products or offers they showed interest in. The goal is to re-engage them, encourage a return to the brand’s platform, and drive them to complete the desired action. Campaigns are refined over time to improve effectiveness.

1. Using Email Marketing and CRM Data for Remarketing

Remarketing leverages data from Customer Relationship Management (CRM) tools to craft personalized email campaigns. If a customer hasn’t purchased in six months, an automated email can remind them of your products or offer a discount to entice them back. Remarketing emails have an average open rate of 45%, significantly higher than standard marketing emails, highlighting their effectiveness.

2. Remarketing Through Automated Emails or Newsletters

Automation tools like Mailchimp or HubSpot make it easy to send timely and relevant messages at scale. Like:

• Abandoned cart emails: Encouraging users to complete their purchase by showing the items left in their cart.

• Re-engagement campaigns: Offering incentives to inactive customers, such as discounts or exclusive offers.

• Personalized product recommendations: Using past purchase data to suggest complementary products or services.

Key Technologies Involved

Remarketing and retargeting rely on key technologies to track user behavior and deliver personalized ads. Cookies store user data on their device, enabling businesses to recognize returning visitors and show relevant ads. Tracking pixels, tiny code snippets embedded in websites or emails, collect user activity data on the server-side, helping advertisers optimize engagement strategies. Tags, managed through tools like Google Tag Manager, track conversions and ad performance efficiently. Additionally, Customer Data Platforms (CDPs) aggregate data from multiple sources to create unified customer profiles for precise targeting, while CRM tools store interaction history to personalize communication and improve customer retention. Together, these technologies enhance ad relevance and effectiveness.

1. Cookies, Tracking Pixels, and Tags

Cookies, tracking pixels, and tags form the backbone of modern retargeting strategies, enabling businesses to deliver highly personalized and effective advertisements.

• Cookies: A cookie is a small file stored on a user’s device when they visit a website. It contains information such as user preferences, login credentials, or browsing activity, which allows businesses to identify returning visitors and provide a seamless browsing experience. For example, cookies enable features like keeping items in a shopping cart or showing ads for products a user recently viewed. Cookies are essential for retargeting campaigns, as they track user behavior and help create audience segments for personalized ads.

• Tracking Pixels: A tracking pixel is a 1×1 pixel-sized snippet of code embedded in a website or email that collects user activity data. Unlike cookies, which store information locally on the user’s device, tracking pixels gather data on the server-side, such as when a user opens an email, clicks on a link, or visits a specific page. This data is invaluable for understanding user engagement and optimizing marketing strategies. For example, tracking pixels can notify advertisers when users visit a product page but don’t make a purchase, enabling targeted follow-up ads.

• Tags: Tags are snippets of JavaScript code added to a website to track visitor activity, conversion rates, or ad performance. Tools like Google Tag Manager (GTM) simplify the process of managing these tags by centralizing them in one platform. GTM allows marketers to add, update, and monitor tags without requiring extensive developer assistance, ensuring that campaigns run smoothly and efficiently. For example, with GTM, you can deploy tracking codes for Google Analytics, Facebook Ads, or other platforms with just a few clicks, making it easier to measure campaign success and refine strategies.

Customer Data Platforms (CDPs) and CRM Tools

Customer Data Platforms (CDPs) and Customer Relationship Management (CRM) tools play a pivotal role in modern marketing by providing businesses with a unified, data-driven view of their customers.

• CDPs: A Customer Data Platform, such as Segment or Treasure Data, aggregates data from various sources such as websites, mobile apps, social media, and in-store interactions to create a comprehensive and unified customer profile. Unlike traditional data tools, CDPs consolidate both structured and unstructured data in real time, enabling marketers to craft precise targeting strategies for retargeting and remarketing campaigns. For instance, a CDP can identify that a user browsed a product on the website, added it to their cart, and also interacted with a related social media post. Using this data, businesses can send hyper-personalized ads or emails to encourage conversion.

• CRM Tools: Customer Relationship Management tools, such as Salesforce or HubSpot, store detailed customer interaction data, including purchase history, email communications, and support inquiries. CRM tools are essential for nurturing relationships by personalizing communication. For example, a CRM can trigger an automated follow-up email thanking a customer for their purchase and suggesting complementary products based on their history. Moreover, CRM tools provide valuable insights into customer preferences, helping businesses build loyalty and improve customer retention.

Types of Retargeting Campaigns

Retargeting campaigns come in various forms to re-engage potential customers based on their interactions. Site Retargeting tracks visitors who leave a website without converting and shows them relevant ads across other sites. Search Retargeting targets users based on their search queries, displaying ads related to their interests even if they haven’t visited the advertiser’s website. Social Media Retargeting leverages platforms like Facebook and Instagram to show ads to users who interacted with a brand’s content. Email Retargeting engages users who opened emails but didn’t take action by delivering follow-up ads. Dynamic Retargeting personalizes ads with specific products users viewed, increasing the chances of conversion. These strategies help brands stay top-of-mind and drive engagement.

Site Retargeting

Site retargeting leverages tracking technologies to re-engage users who have previously visited a website but didn’t convert. Cookies track user activity, allowing businesses to show personalized ads based on past interactions. Tracking pixels collect data on pages visited and actions taken, helping advertisers serve relevant follow-up ads. Tags, managed through tools like Google Tag Manager, ensure accurate tracking of visitor behavior and conversions. 

Targeting Visitors Who Browsed but Didn’t Convert

Site retargeting is a focused digital marketing strategy that targets users who have visited your website but left without completing a desired action, such as making a purchase, signing up for a newsletter, or adding an item to their shopping cart. These users have already shown interest in your products or services by visiting your site, but they have not yet converted. Site retargeting aims to re-engage these users and encourage them to return to your site to complete the action they initially started. For instance, if a user visits a product page but leaves without adding the item to their cart, site retargeting can serve personalized ads featuring that same product as they browse other websites or social media platforms. This strategy serves as a reminder of the user’s initial interest, which can significantly increase the chances of conversion by bringing them back to your site.

Site retargeting focuses on users who are already familiar with your brand and have engaged with it, making them warm leads. These users are more likely to convert because they’ve already expressed interest, compared to cold leads who have never interacted with your website. Retargeting allows you to continue engaging these leads and nurture them towards conversion.

Search Retargeting

Search retargeting is a digital advertising strategy that targets users based on their previous search queries. Unlike site retargeting, which focuses on users who have visited a specific website, search retargeting identifies potential customers who have searched for relevant keywords but may not have visited the advertiser’s site. This is achieved using cookies, tracking pixels, and third-party data providers, which collect search behavior data and enable advertisers to display targeted ads across different websites. Platforms like Google Ads and demand-side platforms (DSPs) help businesses bid on ad placements to reach these users with relevant offers. By leveraging search intent, search retargeting increases brand exposure and improves conversion rates.

Reaching Users Based on Their Search Intent and Behavior

Search retargeting is a strategic advertising approach that allows businesses to target users based on the keywords they have searched for, even if those users have not yet visited your website. Unlike traditional retargeting, which relies on user behavior on your own site, search retargeting taps into users’ search intent to display relevant ads as they browse other websites or social media platforms.

Search retargeting allows you to deliver ads that directly align with the user’s search query, making the ads more relevant and personalized. This level of relevance increases the chances of the user noticing the ad, clicking on it, and eventually making a purchase. For instance, if someone searches for “affordable yoga mats,” they are more likely to engage with an ad that offers a sale on yoga mats from your store, rather than a generic display ad.

Social Media Retargeting

Social media retargeting uses tracking technologies to re-engage users who have previously interacted with a brand’s website or content. Pixels and cookies track user behavior, allowing platforms like Facebook, Instagram, and LinkedIn to display personalized ads based on past activity. Custom Audiences help businesses target specific users, such as those who visited a product page but didn’t purchase. These tools make social media retargeting highly effective in driving conversions and brand engagement.

Facebook, Instagram, LinkedIn, and Twitter Retargeting

Social media retargeting is a highly effective way to reconnect with potential customers who have previously interacted with your brand, whether by visiting your website, engaging with your posts, or using your app. Platforms like Facebook, Instagram, LinkedIn, and Twitter each offer unique retargeting tools that enhance business goals. Facebook utilizes detailed user data to create highly targeted ads, keeping your brand prominent in users’ feeds. Instagram leverages visually appealing content to showcase products, enhancing engagement and conversions. LinkedIn focuses on B2B marketing, allowing businesses to retarget professionals based on job titles and industries, making it ideal for lead generation. Meanwhile, Twitter enables brands to promote tweets and accounts to users who have interacted with their content, maintaining visibility during trending conversations. By harnessing these platform-specific capabilities, businesses can effectively reinforce brand messaging and drive conversions through targeted ads that resonate with their audience.

Email Retargeting

Email retargeting leverages user data to send personalized emails based on past interactions. It works by tracking user behavior through cookies, tracking pixels, or CRM data and then triggering automated emails to re-engage potential customers. CDPs and CRM tools help segment audiences and tailor email content based on browsing history, purchase behavior, or engagement levels. This strategy improves conversion rates by delivering timely, relevant messages that nurture leads and drive sales.

Targeting Users Who Opened but Didn’t Act on an Email

Email retargeting bridges the gap between email marketing and display advertising. For example, if a user opens your email about a sale but doesn’t click through, you can serve them complementary ads on platforms like Google or Facebook. This integrated approach ensures consistent messaging across channels.

Dynamic Retargeting

Dynamic retargeting uses real-time data to display personalized ads based on a user’s browsing behavior. Unlike standard retargeting, which shows generic ads, dynamic retargeting pulls product-specific information to create highly relevant ads. Technologies like cookies, tracking pixels, and tags track user interactions, while Customer Data Platforms (CDPs) and CRM tools help segment audiences for better targeting. Platforms like Google Ads and Facebook Ads use machine learning to optimize dynamic ad delivery, ensuring users see the most relevant products. This approach increases engagement and conversion rates by reminding users of the exact items they showed interest in.

Personalized Product Recommendations for Abandoned Carts

Dynamic retargeting automatically generates ads showcasing products a user interacted with. Dynamic retargeting uses data-driven algorithms to automatically generate personalized ads based on a user’s behavior. Once a user visits a website or app, the system tracks their interactions, such as the products they viewed, added to their cart, or even abandoned during checkout. After this interaction, dynamic retargeting ads are automatically created and served across various platforms (such as Google, Facebook, Instagram, or even third-party websites) to remind users of their previous interest. If a user visits a website and views a pair of shoes but leaves the site without making a purchase, dynamic retargeting ads will display those specific shoes in their feed, along with complementary items like socks, shoe polish, or related footwear, such as sandals or boots. By showing users products they have already shown interest in, along with personalized recommendations, dynamic retargeting helps reignite their interest and encourage them to complete the purchase. 

Table of Content

Retargeting & Remarketing: A Comprehensive Guide / Part 1

Retargeting & Remarketing: A Comprehensive Guide / Part 2

Retargeting & Remarketing: A Comprehensive Guide / Part 3

By Seha Yildirim