What is retargeting ad and why is it important?

What are retargeting ads?

Retargeting ads, also known as retargeting campaigns, are strategies aimed at re-engaging with previous website or app visitors through online ads or email outreach. Nearly all advertising channels offer retargeting features, empowering advertisers to strategically utilize available data. By crafting personalized messages and compelling creative content, advertisers can entice potential customers to return to the website or app for conversion.

This focused approach not only strengthens brand recall but also significantly boosts the likelihood of converting leads into dedicated and loyal customers, making retargeting a powerful tool in the marketer's arsenal.

date published

Jan 5, 2024

date published

Jan 5, 2024

date published

Jan 5, 2024

date published

Jan 5, 2024

reading time

3 min read

reading time

3 min read

reading time

3 min read

reading time

3 min read

Did you know that only 2% of web traffic converts on the first visit?

Retargeting helps bring back the other 98%. It's all about the follow-up and staying top of mind with potential customers. Retargeting works by placing a tracking pixel on your website, which then allows you to show targeted ads to people who have already visited your site. This way, you can remind them of your brand and encourage them to come back and complete their purchase or take the desired action.

  1. Consumers are 70% more likely to convert with retargeting ads on Facebook.

  2. Retargeted ads are 76% more likely to get clicks than regular display ads.

  3. The click-through rate (CTR) of a retargeted ad is 10x higher than the CTR of a typical display ad.


According to Exploding Topic:

  • The global retargeting software market is expected to reach $8.87 billion by 2029

  • 1 in 5 marketers has a dedicated retargeting budget

  • 77% of marketers use retargeting in Facebook and Instagram advertising

  • Retargeted users are 8x cheaper to reach per click


According to Sharpspring:

  • 36% marketers finds retargeting strategy very successful in terms of driving higher ROAS and conversions.

  • Google and Facebook ads are the most used platforms for retargeting, this is because the advanced targeting options, extensive user reach, and robust analytics they offer. Both Google and Facebook ads provide advertisers with a comprehensive suite of tools to precisely target specific audience segments based on demographics, interests, online behavior, and more. The vast user bases of these platforms ensure that advertisers can reach a broad audience and re-engage with past visitors effectively.

  • 161% Conversion rate rise from Google Remarketing Campaigns

  • 47% of online shoppers say privacy is worth ditching for a better deal.


Did you know that only 2% of web traffic converts on the first visit?

Retargeting helps bring back the other 98%. It's all about the follow-up and staying top of mind with potential customers. Retargeting works by placing a tracking pixel on your website, which then allows you to show targeted ads to people who have already visited your site. This way, you can remind them of your brand and encourage them to come back and complete their purchase or take the desired action.

  1. Consumers are 70% more likely to convert with retargeting ads on Facebook.

  2. Retargeted ads are 76% more likely to get clicks than regular display ads.

  3. The click-through rate (CTR) of a retargeted ad is 10x higher than the CTR of a typical display ad.


According to Exploding Topic:

  • The global retargeting software market is expected to reach $8.87 billion by 2029

  • 1 in 5 marketers has a dedicated retargeting budget

  • 77% of marketers use retargeting in Facebook and Instagram advertising

  • Retargeted users are 8x cheaper to reach per click


According to Sharpspring:

  • 36% marketers finds retargeting strategy very successful in terms of driving higher ROAS and conversions.

  • Google and Facebook ads are the most used platforms for retargeting, this is because the advanced targeting options, extensive user reach, and robust analytics they offer. Both Google and Facebook ads provide advertisers with a comprehensive suite of tools to precisely target specific audience segments based on demographics, interests, online behavior, and more. The vast user bases of these platforms ensure that advertisers can reach a broad audience and re-engage with past visitors effectively.

  • 161% Conversion rate rise from Google Remarketing Campaigns

  • 47% of online shoppers say privacy is worth ditching for a better deal.


How to incorporate retargeting strategy to boost conversions?

Before we starts, since the introduction of the iOS update, advertisers have faced some difficulties. However, they've adapted by changing their strategies. One notable change is how Facebook has responded. To make retargeting simpler and more reliable, Facebook now lets advertisers verify their domains and install the Facebook Conversion API.

Now, let us show you how to run retargeting campaign and what you need to make your remarketing strategy a success.

1. Implement Tracking Pixels

To start, you need to implement tracking pixels on your website. These are small pieces of code that track user behavior and collect data. They can be installed through platforms like Google AdWords or Facebook Ads Manager.


2. Audience Segmentation

Segment your audience based on their interaction with your site. Here are some common segments:


  • Homepage viewers: Visitors who only viewed the homepage.

  • Product page viewers: Visitors who viewed specific product pages.

  • Cart abandoners: Visitors who added items to their cart but didn't complete the purchase.

  • Past purchasers: Visitors who have made a purchase in the past.


3. Develop Personalized Retargeting Ads

Create personalized ads for each segment. Use dynamic retargeting to automatically show users ads for products they've shown interest in. For example, for cart abandoners, you could create an ad that says, "Forgot something? Complete your purchase now!" and display the items they left in their cart.


4. Select Retargeting Platforms

Choose the right platforms for your retargeting ads. Some popular ones include:

  • Google Display Network: This allows your ads to appear on any website that uses Google AdSense.

  • Facebook Retargeting: This lets you target users on Facebook based on their activity on your site.

  • LinkedIn Retargeting: Similar to Facebook, this platform allows you to target users based on their activity on your site.

Tip: Keep in mind the primary platforms your audience uses. Understanding their preferred platforms enables you to tailor your strategies effectively, ensuring a more targeted and impactful approach in reaching and engaging your audience.


5. Set Up Conversion Tracking

Set up conversion tracking to measure the success of your retargeting campaign. This will allow you to see which ads are leading to conversions and adjust your strategy accordingly.


6. A/B Testing

Test different versions of your ads to see which ones perform best. You can test different headlines, images, and call-to-actions. Use the results to refine your ads and improve your conversion rate.


7. Frequency Capping

Set a limit on how often a user sees your ad. This prevents ad fatigue and keeps users from getting annoyed with seeing your ads too often. By following these steps, you can create a detailed and effective retargeting strategy that will help increase conversions on your website.

In conclusion

By utilizing retargeting strategies, businesses can significantly increase their conversion rates and maximize their return on investment. So, don't let that 98% slip away - implement retargeting and give your web traffic a second chance to convert.

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