Retargeting

In this guide, we’ll break down how retargeting works, why it’s important for marketers, and how to launch your first campaign. Whether you’re new to digital advertising or optimizing your current strategy, consider this your Retargeting 101. 

What is retargeting?

Short definition: Retargeting is a digital ad strategy that shows personalized ads to users who’ve previously engaged with a brand but haven’t converted, reminding them of products they viewed to encourage a purchase. It’s a friendly reminder that says: “Still interested? Here’s what you were looking at, and maybe a little more.” By re-engaging shoppers across channels, retargeting increases the chances they’ll return and convert.  

Retargeting vs. Remarketing

These terms are sometimes used interchangeably, but in most marketing circles, there’s a difference. Both aim to convert a site visitor who hasn’t yet bought, but it’s the outreach method that differs. 

  • Retargeting uses display or native ads across websites, apps, and social platforms. 
  • Remarketing relies on email campaigns, such as cart-abandon emails or personalized upsell offers. 

Why retargeting matters today: Today’s shopper journey is more fragmented than ever—spanning multiple sites, devices, and apps. Retargeting allows advertisers to reconnect with high-intent users at the right moment, so budgets aren’t wasted on cold leads. 

How retargeting works step‑by‑step 

The mechanics of retargeting can feel abstract, so let’s make it tangible with a real-world example. Meet Kim, a shopper exploring her options online.  

Kim browses your website from her laptop, checking out a few products she likes. But like most shoppers, she leaves without adding anything to her cart. A few days later, while scrolling on her phone, Kim sees an ad featuring the exact products she viewed—plus a few related items she hadn’t discovered yet. The ad feels relevant, not random. Kim remembers your brand, clicks the ad, and completes her purchase. 

This is retargeting in action: Establishing touch points after someone leaves your site to bring them back at just the right moment. 

Types of retargeting ads 

Retargeting isn’t limited to banner ads on websites. It spans multiple formats and channels so you can meet your customers wherever they are: 

  • Pixel-Based Retargeting: Uses a tracking pixel to serve ads instantly after a visit.
    • (Static: Same creative for all users. 
    • Dynamic: Ads adapt automatically to show specific products, prices, or availability. 
  • List-Based Retargeting: Uploads CRM or email lists to retarget known contacts across platforms. 
  • Search Retargeting: Targets people based on past search behavior, even if they haven’t visited your site. 
  • Social Retargeting: Re-engages site visitors on platforms like Facebook, Instagram, or TikTok using native ad formats. 

Benefits of retargeting 

Marketers love retargeting for one simple reason: it works. It’s one of those tactics that feels like having a superpower in your toolbox. Here’s why: 

  • Boosts brand recall: Shoppers rarely buy on the first visit. Retargeting keeps your brand in their line of sight, sparking recognition and trust every time they scroll. 
  • Drives conversions: Nothing beats the thrill of turning “just browsing” into “checkout complete.” Retargeting helps you catch people exactly when they’re ready to act. 
  • Maximizes ROI (and makes budgets smile): Every marketing dollar works harder when you aim it at warm leads. Retargeting keeps wasted spend to a minimum and results to a maximum. 
  • Follows the shopper journey everywhere: Mobile at breakfast, desktop at lunch, tablet at night—retargeting connects the dots so your brand feels consistent across every device. 
  • Personalizes every interaction: With dynamic creative, each shopper gets ads tailored just for them. Think: “Hey, we saved this just for you.” 
  • Supports the full funnel: Yes, retargeting is about closing the sale. But it also builds awareness, nurtures consideration, and even drives repeat purchases. 

How much does retargeting cost? 

There isn’t a single price tag for retargeting. It depends on your ad placements, targeting approach, and platform. Most campaigns use one of two pricing models: 

CPM (Cost Per Mille): Pay per 1,000 ad impressions. This model is good for building awareness but doesn’t guarantee clicks or conversions. If your ad lands below the fold, you might pay for an impression no one actually saw. 

CPC (Cost Per Click): Pay only when someone clicks. This model is ideal for performance-driven campaigns, where your goal is measurable actions like purchases or sign-ups.  

Retargeting campaign examples

Here are some examples of retargeting in action: 

How to set up a retargeting campaign 

Think of retargeting like building a smart feedback loop. Here’s how to set one up: 

  1. Choose your platforms: Decide where your ads will run: on Google, the open web, social media, or across all channels. 
  2. Segment your audience: Group users by intent or recency. This ensures your ads feel relevant and timely. 
  3. Create compelling creatives: Use Dynamic Creative Optimization (DCO) to tailor visuals and messaging for each segment.  
  4. Optimize frequency and placements: Cap how often ads appear and test placements to keep ads visible but not overwhelming. 
  5. Leverage smart technology: Use AI-driven platforms that adapt in real time, recommending relevant products beyond recent views and predicting conversion moments. 
  6. Track and refine: Continuously monitor performance, run A/B tests, and refine campaigns based on results. 

Common mistakes to avoid

Even experienced marketers can stumble. Here’s a guide to keep retargeting campaigns sharp: 

Retargeting FAQ 

We know retargeting can feel a bit mysterious if you’re new to it. Here are answers to the most common questions marketers ask before getting started:  

Q: Does retargeting work for small businesses?  

Absolutely. In fact, it’s one of the most cost-effective ways for SMBs to increase conversions. Even with modest budgets, retargeting focuses on audiences most likely to buy. 

Q: How long should I run a retargeting campaign?  

It depends on your sales cycle. Many campaigns run for 7–30 days, but the key is to test duration and frequency caps to avoid oversaturation. 

Q: Is retargeting the same as prospecting?
No. Retargeting reconnects with existing visitors, while prospecting introduces your brand to new audiences who share similar traits to your best customers. 

Q: Do retargeting ads “follow” people forever?  

No. Smart platforms respect user consent and privacy. Frequency caps and burn windows ensure ads don’t overstay their welcome. 

Q: Can I retarget across devices?  

Yes, with the right technology. Advanced platforms can connect identities across mobile, desktop, and tablet, ensuring a seamless cross-device experience.  

Make retargeting work for you 

Retargeting helps brands maximize performance by re-engaging users who are already familiar with their brand. When done right, it boosts conversions, reduces wasted ad spend, and creates more meaningful customer journeys. 

Want to go beyond the basics? Explore how Criteo’s commerce data and AI power full-funnel performance marketing across channels on our blog.