The majority of visitors don’t make a purchase on their first visit to your website. On average, eCommerce stores convert just 5.2% of their traffic. Without a plan to re-engage those who leave, you risk missing out on potential sales. This is where retargeting becomes essential—it’s an effective method to reconnect with visitors who didn’t complete a purchase the first time around.
What Is Retargeting?
Retargeting is a marketing strategy that targets people who have already visited or engaged with your website or social media accounts through online advertisements. Additionally, it offers a chance to convert users who did not end up becoming customers during that first interaction.
This strategy entails displaying paid advertisements in different formats to previous website visitors or social media users who have engaged with your content.
Retargeting ads motivate visitors to return to your website and take desired actions, such as making a purchase, booking a demo, or signing up for a free trial.
Retargeting vs. Remarketing
The terms retargeting and remarketing are often used interchangeably. But their meanings differ slightly.
Retargeting focuses on reaching past website visitors through ads, prompting them to return and take a specific action.
In contrast, remarketing typically involves sending personalized messages to customers who have already made a purchase, with the goal of strengthening relationships and driving repeat sales.
How Does Retargeting Work?
Retargeting relies on tracking pixels, also known as tags in Google, to gather data on website visitors and social media users who interact with your brand.
This small piece of code, provided by advertising platforms like Google Ads, is added to your website’s header to load on every page.
The tracking pixel is installed in the user’s browser when they visit your website, allowing the advertising platform to identify the user when they visit other websites or social media sites where your ads may be displayed.
Pixels don’t collect visitors’ personal data like names or addresses. But they record the user’s IP address, so your retargeting ads can be served to that IP address in the future.
Depending on your reporting tools, the tracking pixel can tell if a user has completed a purchase or conversion. This can help with ongoing campaigns, selling add-ons, and advertising based on previous purchases.
Beyond IP addresses, tracking pixels can monitor various user actions:
- Page views
- Clicks
- Form submissions
- Video views
- Downloads
- Add-to-carts
- Purchases
This allows you to customize your ads based on users’ past interactions with your brand, making them more relevant and engaging.
Best Practices for Creating Retargeting Ads
To maximize the effectiveness of retargeting campaigns, consider the following best practices:
- Segment Your Audience – Group users based on their behavior, such as cart abandoners, product viewers, or past buyers, to deliver more relevant ads.
- Use Frequency Capping – Limit how often a user sees an ad to avoid overwhelming them.
- Create Engaging Ads – Use compelling visuals, strong CTAs (call-to-actions), and personalized messages to increase engagement.
- Optimize for Mobile – Ensure retargeting ads are mobile-friendly for better reach.
- Test and Analyze Performance – Regularly monitor ad performance and make necessary adjustments to improve results.
