Definition: Retargeting, also known as remarketing, is a digital advertising strategy that involves targeting users who have previously interacted with a website or mobile app but did not complete a desired action, such as making a purchase or filling out a form. It aims to re-engage these potential customers by showing them relevant ads across different online platforms to encourage them to return and convert.How Retargeting Works
User Interaction: When a user visits a website or interacts with a mobile app, a cookie or pixel is placed on their browser or device.Tracking Previous Visitors: The website or app tracks the user’s behavior and actions, such as the pages they visited, products viewed, or items added to the cart.Segmentation: Based on the tracked data, users are segmented into different retargeting lists, each tailored to specific actions or interests.Displaying Targeted Ads: Users in the retargeting lists are then shown targeted ads on other websites, social media platforms, or mobile apps they visit, reminding them of the previous interaction.Where and Who Uses Retargeting
E-Commerce Websites: Online retailers use retargeting to bring back users who abandoned their shopping carts and encourage them to complete the purchase.Lead Generation: Businesses engaged in lead generation use retargeting to reconnect with potential customers who showed interest but did not convert into leads.App Developers: Mobile app developers use retargeting to re-engage users who downloaded their app but have not been active recently.Best Practices for Retargeting
Segmentation: Segment your audience based on specific actions or interests to deliver more relevant ads.Frequency Capping: Limit the number of times a user sees a retargeting ad to avoid ad fatigue and annoyance.Personalization: Create personalized retargeting ads based on the user’s previous interactions to increase relevance and engagement.Example of RetargetingA user visits an online clothing store and browses through various products but leaves without making a purchase. Later, while browsing a news website, the same user sees a display ad featuring the exact products they were interested in. The ad encourages them to return to the clothing store and complete their purchase.Calculation FormulaRetargeting doesn’t involve a specific calculation formula. However, advertisers can track key performance indicators (KPIs) such as conversion rate, click-through rate (CTR), return on ad spend (ROAS), and cost per acquisition (CPA) to measure the effectiveness of their retargeting campaigns.