What is retargeting?

Retargeting involves displaying personalized advertisements to users who have previously interacted with a brand's website. By tracking user behavior and preferences, retargeting aims to re-engage potential customers and encourage them to revisit the site, ultimately increasing the likelihood of conversion.

How does retargeting work?

Retargeting works by placing a small piece of code, called a cookie, on the user's browser when they visit a website. This cookie allows the website to track the user's browsing activity and show them relevant ads on other websites that they visit.

For example, if a user visits a clothing retailer's website and browses a few different items of clothing, the retailer may place a cookie on their browser. This cookie will then allow the retailer to show the user clothing ads on other websites that they visit.

Retargeting strategies have undergone a significant shift due to the privacy changes followed by the introduction of Apple's App Tracking Transparency (ATT) framework and Google’s Privacy Sandbox. 

Apple’s App Tracking Transparency (ATT) framework forced a reevaluation of iOS retargeting methods, emphasizing user consent for data tracking. Google’s Privacy Sandbox for Android, meanwhile, aims to offer a “privacy-centric approach” for advertising, balancing user data interaction and non-personal data sharing. 

The result has led advertisers to turn to SMS opt-in messaging to expand their access to customers’ first-party data. Moreover, contextual targeting has gained prominence as a tool alongside efforts to use predictive analytics to get as close to delivering personalized messages without the use of third-party cookies as a guide to retarget users.

Types of retargeting:

There are two main types of retargeting:

• Site-based retargeting: This type of retargeting targets users who have visited a specific website.
• Search-based retargeting: This type of retargeting targets users who have searched for specific keywords on a search engine.

How to measure retargeting:

The success of retargeting campaigns is typically measured by the following metrics:

• Click-through rate (CTR): The percentage of users who see a retargeting ad and click on it.
• Conversion rate: The percentage of users who click on a retargeting ad and take a desired action, such as making a purchase or signing up for a newsletter.
• Return on investment (ROI): The amount of money earned in revenue divided by the amount of money spent on retargeting.

Why is retargeting important to marketers?

Retargeting allows marketers to:

• Reach potential customers who have already shown an interest in their product or service.
• Increase brand awareness and consideration.
• Drive traffic back to their website or app.
• Increase conversions and sales.
• Improve their return on investment (ROI).

Who needs to know what retargeting is:

• Performance marketer
• Digital marketer
• Google Ads specialist
• Display advertising specialist
• Social media marketer
• E-commerce manager
• Retail manager
• Marketing manager
• Agency owner
• CMO

Use retargeting in a sentence: “We use retargeting to reengage shoppers that demonstrated interest in a product, but then abandoned cart.”