What Is Retargeting? Intro, Setup, and Best Practices (2024)

Only a small portion of your potential market is actively looking to buy. In fact, out of 100% of your market, about 90% aren’t ready to make a purchase — they might not need your product, lack interest, or are simply not motivated to act.

Only around 3% are actively seeking what you offer and will buy right away. 

That leaves 7% who are exploring their options and are likely to return to your website if you reach out to them with a targeted ad.

New visitors only convert at about 2.4%. Additionally, 97% of visitors never return to a website, as per Monetate. When you put these stats together, it’s clear that leaving retargeting out of your marketing strategy means missing out on valuable leads.

In this article, I’ll walk you through the basics of retargeting, from understanding how it works to setting up campaigns effectively. I’ll also share some key best practices to ensure your retargeting efforts lead to better engagement and higher conversions.

By the end of this article, you'll have a solid understanding of how retargeting works and the tools and strategies you need to create successful campaigns that drive results.

Let’s jump in!

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What is Retargeting?

Retargeting is a digital advertising strategy that focuses on re-engaging users who have previously interacted with your website but haven’t completed a desired action, like making a purchase. It helps bring them back to your site by showing personalized ads on other platforms or websites they visit.

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The Benefits of Retargeting for Your Business

Retargeting offers several advantages that can significantly enhance your marketing efforts:

• Increases conversions by targeting users who are already familiar with your brand.
• Boosts brand awareness through repeated exposure, keeping your brand top-of-mind.
• Improves ROI since retargeted ads tend to perform better than standard display ads.
• Cost-effective compared to other forms of digital advertising.
• Enhances user engagement by delivering more relevant, personalized ads.

Different Types of Retargeting

As the website is the core of every business, most of my experience focuses on the first (and the third, fifth to an extent) item: site retargeting. In other words, I will break down how it works after someone visits your website.

• Site retargeting: Targets users who visited your website but left without converting. Example: If a user browses a product page on your online store but doesn’t complete the purchase, they may later see an ad for that same product while reading an article on a news website.
• Search retargeting: Shows ads to users based on their previous search queries. Example: After someone searches for "best running shoes" on Google, they might start seeing your ads for running shoes on different websites they visit.
• Social media retargeting: Targets users on social media platforms like Facebook or Instagram after they’ve engaged with your website. Example: A user visits your site to look at your latest software solution but doesn’t sign up, then sees an ad for it on their Facebook feed later that day.
• Email retargeting: Retargets users who’ve opened your email campaigns but didn’t take further action. Example: Someone opens your email about a special offer but doesn't take action, then later encounters an ad reminding them of the offer as they browse other websites.
• Dynamic retargeting: Uses dynamic ads to show users the specific products or services they viewed on your site. Example: After a user looks at a specific laptop model on your website, they later see an ad featuring that exact laptop on their Instagram feed.

Retargeting vs Remarketing

Retargeting and remarketing are often used interchangeably, even I used them as such for a long time. They technically refer to the same general concept: reaching back out to users who’ve already interacted with your brand in some way. 

Both strategies aim to re-engage potential customers who didn’t convert during their initial visit. 

However, there are some key differences between the two approaches.

• Retargeting generally refers to using paid ads to reach users who have previously visited your website or engaged with your brand online. It’s primarily focused on display ads and social media ads that target users as they browse other sites or apps.
• Remarketing, on the other hand, is more often associated with email marketing. It involves re-engaging users through email campaigns after they’ve completed specific actions, like abandoning a cart or not following through on an offer.

In essence, while both techniques aim to bring users back into your sales funnel, the tools and channels they use set them apart. Retargeting focuses more on paid ads across the web, whereas remarketing tends to focus on personalized email campaigns.

How to Setup Retargeting Campaigns Properly on Your Site

The part of retargeting setting is technical, and it involves setting up pixels, which as pieces of code that lets you connect desired social media or other platform for retargeting with your website. 

However, you also need to go through segmentation of audiences, developing ads, budgeting, and tracking ad performance.

Set Up Tracking Pixels

1. Select your platforms: Decide which ad platforms to use for retargeting, with Google Ads and Facebook Ads being the most popular options.
2. Generate tracking pixels:
   • For Google Ads: Navigate to “Tools & Settings” > “Shared Library” > “Audience Manager” > “Audience Sources” > “Set Up” under the Google Ads Tag.
   • For Facebook Ads: Go to “Events Manager” > “Pixels” > “Add” to create a Facebook Pixel.
3. Install pixels on your site: Copy the pixel code and place it in your website’s header or use a tag manager like Google Tag Manager.

Segment Your Audience

1. Define segments: Identify key behaviors and actions (e.g., time on site, product views, page visits) to segment your audience. You can also target users based on your Ideal Customer Profile (ICP) to improve ad relevance.
2. Create custom audiences:
   • For Google Ads: Go to “Tools & Settings” > “Audience Manager” > “Audience Lists” > “+” to build new segments.
   • For Facebook Ads: Head to “Audiences” > “Create Audience” > “Custom Audience” to create segments based on traffic.

Develop Tailored Ads

1. Craft your messaging: Create copy and visuals that directly address each segment's needs and behaviors. Personalization is key.
2. Design compelling visuals: Ensure the visual elements of your ads are engaging and resonate with the specific audience segment you're targeting.
3. Launch campaigns:
   • For Google Ads: Start a new campaign, selecting either the “Display” or “Search” network. Use your custom audiences for targeting.
   • For Facebook Ads: Set up a campaign by selecting your objective and choosing your custom audience in the ad set.

Launch and Monitor Your Campaigns

1. Set your budget and bidding strategy: Establish a daily or lifetime budget for each campaign. Select a bidding strategy that aligns with your goals, such as cost-per-click (CPC) or cost-per-thousand impressions (CPM).
2. Monitor campaign performance: Continuously evaluate the performance of your campaigns. Pay attention to metrics like click-through rates (CTR), conversion rates, and return on ad spend (ROAS).
3. A/B test ad variations: Experiment with different ad creatives, headlines, and calls-to-action (CTAs) to determine what resonates with your audience. Use A/B testing to make informed, data-driven decisions.
4. Optimize based on data: Analyze your performance data and adjust your campaigns accordingly. This might include changing creatives, refining your targeting, or reallocating budget to better-performing ads.

Track Conversions and Measure Success

There are various tools available to help you track the success of your retargeting campaigns, providing insights that can optimize performance and maximize ROI. One essential tool is Google Analytics 4 (GA4), which allows you to monitor user interactions across platforms and measure key metrics such as conversion rates, page views, and session duration.

Another highly effective strategy is using A/B testing tools. These allow you to test different ad variations to determine which one resonates best with your audience. A/B testing can involve experimenting with different creatives, headlines, calls-to-action (CTAs), or even audience segments. 

Additionally, platforms like Google Ads and Facebook Ads offer built-in tracking and conversion measurement tools, which can help you segment your audience, define custom audiences, and analyze their behavior across multiple touchpoints.

Best Tools for Retargeting

The tech stack you use for your retargeting campaign is ultimately up to you, based on your preferences, audience, preferred channels, and so on. Here’s what we often rely on at Flow Ninja.

HubSpot Marketing

HubSpot offers an all-in-one marketing platform that includes powerful retargeting features. With HubSpot, you can track user interactions across your website, segment your audience based on their behaviors, and deliver targeted ads to re-engage them. 

Its CRM integration also allows for highly personalized retargeting campaigns, making it a valuable tool for nurturing leads and driving conversions.

Facebook Pixel

Facebook Pixel is technically not a tool but a code that you place on your website to track user activity and gather valuable data on your audience. 

It allows you to retarget visitors who have engaged with your site on Facebook and Instagram, creating personalized ad experiences. Facebook Pixel also enables conversion tracking and optimization, helping you refine your campaigns for better performance.

Google Tag

Google Tag is a centralized tag management tool that allows you to track user activity across your site and integrate various Google marketing products, such as Google Ads, Analytics, and DoubleClick. 

This simplifies the process of adding tracking pixels and ensures you can retarget visitors with highly relevant Google Ads. It's an essential tool for any marketer looking to streamline their retargeting efforts and manage tags efficiently.

Twitter Retargeting Pixel

The Twitter Retargeting Pixel helps you track user behavior on your website and retarget them with ads on Twitter. 

By using this tool, you can re-engage visitors who have already shown interest in your product or service, delivering tailored ads that match their browsing behavior. This can be a great way to reconnect with users and drive traffic back to your website.

Google Ads Remarketing Tag

The Google Ads Remarketing Tag allows you to track users who have visited your website and show them ads across the Google Display Network. 

This tool is effective in keeping your brand top-of-mind by delivering personalized ads to users as they browse the web, use apps, or watch videos on YouTube. With detailed targeting options and broad reach, it’s an essential retargeting tool for any business.

MailChimp

MailChimp is known for its email marketing capabilities, but it also offers retargeting features through its integration with Facebook and Google Ads. You can set up automated retargeting ads to remind visitors of your brand, abandoned carts, or new products, helping to nurture leads and drive conversions. 

The simplicity and accessibility of MailChimp make it an excellent choice for businesses of all sizes.

AdRoll

AdRoll is a comprehensive retargeting platform that helps you reach users across multiple channels, including web, social, and email. 

It integrates with major advertising networks and allows you to create dynamic retargeting ads tailored to specific user behaviors. AdRoll’s detailed analytics and cross-platform capabilities make it a powerful solution for businesses looking to expand their retargeting reach.

Webflow

At Flow Ninja, we use Webflow not only for building websites but also for its highly targeted marketing potential. 

Webflow makes it easy to create custom landing pages tailored for specific retargeting campaigns, helping to improve engagement and conversion rates. 

It also integrates seamlessly with various marketing tools and tracking pixels, simplifying the retargeting process. 

This flexibility has transformed Webflow from just a CMS or website builder into a robust marketing tool, making it an indispensable asset for marketers looking for ease of use and power in one platform.

Best Practices for Successful Retargeting

Retargeting is no rocket science, really. The pieces of advice I will share below are somewhat what you might deduct once you start doing it on your own. Still, let’s see what they are.

Segment Your Audience

Not all users are at the same stage of their buyer journey, so treating them as one group won’t be effective. 

Segment your audience based on their behaviors and interactions with your website or content. 

For example, someone who abandoned booka a demo page might respond differently when you offer them a discount, while someone who only visited a blog post may need more information before making a decision. 

Use behavioral data to create highly targeted retargeting campaigns that align with each segment’s needs and motivations.

Cap Ad Frequency

Showing users the same ad too frequently can cause ad fatigue, leading to annoyance or, worse, negative brand perception. 

Implement frequency caps to limit how often your ads appear to the same user. A general guideline is to show retargeting ads 5-7 times per user per week. This balance helps maintain visibility without overwhelming your audience. 

Frequency caps also allow you to optimize your budget by spreading your exposure to more potential customers instead of focusing on the same few.

Optimize for Different Stages of the Funnel

Not all users are ready to convert immediately. Tailor your retargeting strategy to the different stages of the funnel—top, middle, and bottom. 

• For top-of-funnel visitors, your goal may be brand awareness, so provide content that educates and nurtures. 
• Middle-of-funnel users might need more detailed product information or case studies to move them closer to conversion. 
• Bottom-of-funnel users, such as cart abandoners, may respond well to personalized offers, discounts, or reminders.

Tracking and Measuring Retargeting Campaign Performance

To ensure your retargeting campaigns are effective, it's crucial to track and measure their performance using tools like Google Analytics or Facebook Ads Manager. 

Monitor key metrics such as 

• click-through rate (CTR)
• cost per click (CPC) 
• conversion rate
• return on ad spend (ROAS) 

That way, you can identify what’s working and what needs improvement. It also helps you spot trends and make data-driven decisions, such as reallocating your budget to higher-performing segments or tweaking creatives that aren’t resonating with your audience.

Refresh Your Creative

People quickly get tired of seeing the same ad over and over. 

To keep your campaigns fresh and engaging, make sure to regularly update your ad creatives. A/B test different headlines, images, and calls-to-action (CTAs) to see what performs best. 

Even subtle changes, like tweaking a headline or swapping out an image, can lead to better results. 

Frequent refreshes prevent ad fatigue and ensure that your audience remains interested in your offers, especially for long-running campaigns. Test new offers, use different visuals, and rotate copy to keep the user experience dynamic.

Focus on Exclusion Lists

One of the easiest ways to waste your ad budget is by retargeting people who have already converted.

Create exclusion lists to prevent showing ads to users who have already made a purchase, completed a form, or taken any desired action.

This practice not only saves you money but also prevents irritating your customers.

Additionally, you can exclude certain segments like employees, existing customers, or users who’ve interacted with your brand multiple times without converting, which allows you to better target prospects who are more likely to take action.

Effective use of exclusion lists ensures you’re spending your budget on the right audience.

Common Retargeting Mistakes to Avoid

• Targeting too broad an audience: If your audience is too broad, you’ll end up wasting budget on users who aren’t ready to convert. Target smaller, more defined segments, such as users who visited specific product pages or abandoned carts. 
• Overwhelming users with ads: Showing your retargeting ads too frequently can annoy potential customers. 
• Using the same ads for everyone: Not every visitor is at the same stage in the customer journey, so showing them all the same ad won’t yield great results.
• Failing to rotate creatives: If users keep seeing the same ad, they’ll stop paying attention. Rotating your creatives helps keep your retargeting efforts fresh.
• Not optimizing for mobile: Make sure your landing pages are mobile-friendly. If users can’t easily interact with your content on mobile, your conversions will suffer.
• Ignoring conversion windows: Timing is key in retargeting. If you’re showing ads too long after someone visits your site, they may have already lost interest or moved on.
• Neglecting to exclude converted users: Once someone has converted, there’s no need to keep retargeting them with the same ad. 
• Focusing only on sales and ignoring brand awareness: Not every ad needs to push for an immediate sale. Sometimes, reminding users about your brand or offering helpful content can create a long-term relationship.
• Not using enough data: If you’re not leveraging data properly, your campaigns are likely missing the mark. 
• Ignoring post-click experience: Even if your ad is perfect, a poor post-click experience can kill conversions. Your landing page needs to load quickly, be easy to navigate, and match the ad’s promise. If there’s a disconnect between the ad and the landing page, users will bounce. Pay attention to your entire funnel, not just the ad itself.

Conclusion: Retargeting Is A Piece of a Puzzle

While retargeting plays an important role in many digital marketing strategies, it’s just one of several key factor on how a business can optimize their website for customer acquisition. 

We actually created a great whitepaper overviewing different methods for maximizing your website’s potential. Check it out below.

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