Retargeting or Remarketing – Which Works Best?
December 21, 2023
Sumeet Sinha
What has changed from the original post:
- Added the Intro section
- Added the ‘How Remarketing Works?’ section
- Additional content to the ‘Types of Remarketing Strategies’ section
- Added the ‘Benefits of Remarketing’ section
- Additional content to the ‘How Retargeting Works’ section
- Additional content to the ‘Benefits of Retargeting’ section
- Added content to the Best Practices for Remarketing and Retargeting section
- Added Best Practices for Remarketing and Retargeting section
Summary: Understanding the distinctions between Remarketing and Retargeting strategies is essential for crafting a successful online marketing campaign. In this blog post, we dive into the key differences and considerations to help you determine which approach is better suited to your specific business needs.
Online marketing strategies comprise a diverse range of methods and approaches employed to endorse products, services, or brands on the Internet.
These strategies aim to efficiently and effectively connect with a target audience by harnessing digital technologies.
Two critical concepts within online marketing are remarketing and retargeting, which, although often used interchangeably, have distinct meanings:
What Is Remarketing?
Remarketing involves reconnecting with individuals who have previously shown interest in a business’s products or services but haven’t completed a transaction or taken a specific action.
This strategy often employs email campaigns to contact these prospective customers, highlighting their prior engagements and persuading them to finalize their purchase.
What Is Retargeting?
Retargeting is a digital marketing strategy aimed at re-engaging individuals who have previously interacted with a website or online content individuals. By installing cookies on the user’s device, this approach enables advertisers to display pertinent ads to these visitors across different online platforms, such as social media and search engines.
The goal is to engage users who have shown interest in the business’s products or services, offering a personalized advertising experience.
Selecting an appropriate online marketing approach is vital for companies, impacting their customer acquisition and retention, and affecting their return on investment (ROI). The choice should align with the company’s goals, intended audience, and resources.
An effective strategy can boost brand visibility, improve conversion rates, and foster business expansion. It’s crucial for companies to regularly review and adjust their marketing tactics to stay updated in the dynamic world of digital marketing.
To help businesses understand the intricacies of both strategies, this guide will provide you with real-world examples, industry-standard statistics, and expert opinions to get a better understanding.
Key Differences Between Remarketing and Retargeting
Here’s a table outlining the key distinctions between retargeting and remarketing:
| Distinctions |
Remarketing |
Retargeting |
| Targeting |
Targets users who interact with the brand across various channels. |
Targets users who previously visited the website. |
| Identification Method |
Utilizes customer data and behaviors for targeting. |
Uses browser cookies to identify users. |
| Audience Focus |
Targets both warm and cold leads to re engage them. |
Focused on warm leads with high conversion potential. |
| Advertising Medium |
Utilizes various channels like email, social media, and display ads. |
Primarily employs display ads across platforms. |
| Conversion Rates |
Nurture customer loyalty by delivering personalized experiences. |
Higher conversion rates compared to conventional display advertising. |
| User Limitation |
Reaches users who engage with the brand at any point of interaction. |
Limited to users who visited the website. |
| Suitability |
Ideal for businesses with multiple touchpoints in their marketing strategy. |
Best suited for products requiring additional consideration before making a purchase decision. |
Understanding these key differences will help you make informed decisions for the strategies that align with your business goals and target audience, further leveraging the strengths of both approaches and maximizing customer engagement and conversions.
How Remarketing Works?
Data gathering
The process starts by gathering information from people who visit your website. This is typically achieved through the use of cookies or similar technologies for tracking. When someone visits your website, a cookie is placed in their browser. This cookie is key in recording their online activities and preferences.
Audience segmentation
The data gathered is then used to categorize the audience into different groups. This categorization is based on various criteria, such as the web pages they browsed, the items they showed interest in or their progress in the buying process. This segmentation facilitates marketing strategies that are more customized and focused.
Customized advertising
With the audience divided into segments, custom advertisements are created for each group. For instance, if a visitor viewed a specific product but didn’t complete the purchase, they might encounter advertisements for that particular product while they surf other websites or use social media.
Types of Remarketing Strategies
Email remarketing
Sending personalized emails to past customers based on their previous interactions with the business. These emails can include product recommendations, exclusive offers, or reminders to complete an unfinished purchase.
Social media remarketing
Through platforms like Facebook and X (Twitter), businesses retarget users who interact with their brand. This approach promotes heightened brand engagement and audience reach.
Display ads
This process entails displaying advertisements to individuals who have previously visited your website as they browse other sites within the Google Display Network or similar advertising platforms.
Dynamic remarketing
This strategy presents users with personalized ads, showcasing specific products they previously viewed. This individualized experience nurtures conversions across various platforms.
Video remarketing
Leveraging platforms like YouTube, advertisers target users who engage with their videos, leading to increased brand recall and website visits.
Additional Read: YouTube SEO Secrets
Benefits of Remarketing
Increased customer engagement
Remarketing strategies ensure your brand remains top-of-mind for individuals who have previously visited your site, thereby enhancing the chances of their return.
Higher conversion rates
Remarketing, which focuses on engaging users who have previously expressed interest in your products or services, typically results in enhanced conversion rates when compared to traditional advertising methods.
Customer loyalty
Consistent and tailored engagement via remarketing strategies can boost customer loyalty, as it makes customers feel acknowledged, valued, and appreciated.
Cost-effective
Remarketing tends to be more cost-effective compared to attracting new clients because it focuses on individuals who already have knowledge and/or appreciation of your brand.
To summarize, remarketing serves as a potent method for reconnecting with visitors who have not yet made a purchase or commitment.
It achieves this by displaying customized advertisements on different platforms, thereby boosting customer interaction, elevating conversion rates, and fostering brand loyalty. This makes remarketing a valuable tool in the world of digital marketing.
Remarketing Success Examples
Travel agency triumph
A travel agency implemented email remarketing, offering exclusive discounts to users who abandoned vacation bookings. This strategic move resulted in a remarkable 40% increase in bookings and generated substantial revenue.
Social media success story
A tech company used social media remarketing to target users who interacted with their content. The approach led to a significant increase in website traffic and a 15% rise in lead conversions.
How Retargeting Works
Retargeting operates by identifying users who engage with a website through browser cookies. Subsequently, these users are presented with targeted ads as they browse other websites and social media platforms.
This persistent exposure keeps your brand at the forefront of their minds, fostering increased conversion potential.
Cookies
Small data files, known as cookies, are saved in a user’s browser during their visit to a website.
They monitor the user’s online activities, including the web pages they browse, the products they add to their shopping cart, and the duration of their stay on certain sections of the site.
This information assists marketers in delivering personalized advertisements that match the user’s interests and past online actions.
Pixel tags
Pixel tags, also called tracking pixels, are small and unseen images embedded into websites and emails.
These tags activate when a user loads a page, transmitting details to the server. This information includes the user’s IP address, the page they’re on, and their interactions.
This data plays a vital role in retargeting campaigns, aiding in the monitoring of conversions and providing insights into user behavior.
Types of Retargeting Strategies
Source: Deskera
Pixel-based retargeting
Retargeting typically involves embedding a tiny code snippet, known as a pixel, on your website. This pixel functions by placing an anonymous cookie in the browsers of new visitors to your site.
As a result, as these visitors navigate other parts of the internet, the cookie signals retargeting platforms to display ads tailored to the specific pages they viewed on your website. This strategy is particularly effective in keeping your brand visible to potential customers.
List-based retargeting
This approach involves leveraging your business’s collected contact information, such as email addresses. You can integrate these details into your retargeting efforts on platforms, such as social media and Google.
Once uploaded, the platform delivers advertisements to the individuals on your list, assuming they are using the platform with the same contact details.
Search retargeting
This targets users who have searched for keywords related to your products or services, but haven’t necessarily visited your site. It’s based on their search behavior, allowing you to target potential customers who are in the market for what you offer.
Email retargeting
This involves sending personalized, targeted emails to users based on their interactions with your website. It requires integrating your email platform with your website analytics.
Social media retargeting
This focuses on users who have interacted with your brand on social media platforms. By using social media analytics, you can serve ads to people who have engaged with your social media content or profile.
Dynamic retargeting
This strategy shows ads that feature the specific products or services that visitors viewed on your website. It’s highly personalized and often used by e-commerce sites.
CRM retargeting
Similar to list-based retargeting, this involves using your CRM data to retarget past customers or leads. It’s particularly effective for cross-selling or upselling to existing customers.
Content retargeting
This focuses on delivering content (like blog posts, whitepapers, or videos) to users based on their previous interactions with your website’s content.
Video retargeting
This targets users who have interacted with your videos on platforms like YouTube. You can retarget viewers who watched certain videos, engaged with them or visited your channel.
Event-based retargeting
This is based on specific actions users take on your site, like abandoning a shopping cart or filling out a contact form, triggering specific retargeting ads related to their actions.
Every retargeting approach has its unique advantages, tailored for diverse business models and marketing objectives. The essence of effective retargeting lies in comprehending your audience and selecting the approach that best resonates with their behavior and aligns with your business goals.
Benefits of Retargeting
Source: proideators.com
Increased conversion rates
Retargeting effectively enhances conversion rates by maintaining the visibility of a brand and its products for potential customers. This strategy focuses on users who have previously expressed interest, thereby increasing the likelihood of them finalizing a purchase.
Brand recall and visibility
Regular encounters with retargeted advertisements improve brand memory. The continuous presence of these ads ensures that the brand remains significant and at the forefront of users’ thoughts, regardless of whether they initially left the website without buying anything.
Personalization and relevance
Retargeting enables marketing to be deeply customized for each individual. Advertisements can be tailored according to a user’s past behaviors, enhancing their relevance and attractiveness.
Cost-effectiveness
Retargeting typically delivers a better return on investment (ROI) than many other marketing approaches. By focusing on users who have already shown interest in the brand, the effectiveness of ad spending in terms of conversion rate is generally enhanced.
Examples of Successful Retargeting Campaigns
E-Commerce triumph
An online fashion retailer employed retargeting ads to display products users previously viewed. This personalized approach led to a remarkable 30% increase in conversions, driving substantial revenue growth.
SaaS subscription surge
A software-as-a-service company implemented retargeting for trial users. By showcasing unique features and benefits, they witnessed a 25% increase in conversions and a boost in subscriber retention.
Which Strategy is Right for You?
Selecting the ideal strategy hinges on your business objectives and target audience. Consider the following factors when choosing between retargeting and remarketing:
Remarketing is ideal when:
- You aim to re-engage customers across various digital channels, extending beyond display ads.
- Your marketing strategy involves a combination of email, social media, and other touchpoints.
- You want to deliver a personalized experience based on users’ past interactions.
Retargeting is ideal when:
- Your goal is to retarget users who previously showed interest in your offerings.
- You seek to increase conversions and nurture potential customers down the sales funnel.
- Your product or service requires additional consideration before a purchase decision is made.
Best Practices for Remarketing and Retargeting
Retargeting and remarketing are essential tactics in digital marketing, focusing on reconnecting with users who have previously engaged with your brand or website. Let’s explore some of the best practices for successful retargeting and remarketing.
Segment your audience
Customize your marketing strategies by categorizing your audience according to their online actions. Focus on individuals who left items in their shopping carts without completing the purchase, those who browsed particular products, or users who interacted with your website without finalizing a transaction.
Personalized content
Leverage audience insights to tailor your advertising approach. Consider showcasing products that your audience has previously browsed on your website, or suggest related items that align with their interests.
Maintain a frequency balance
Limit the frequency of your ads being displayed to the same individual to prevent ad fatigue. Excessive exposure might create negative reactions towards your brand.
Timing is everything
Consider the time elapsed since the user’s last interaction. Immediate retargeting can be effective, but sometimes it’s better to wait a bit before re-engaging.
Diverse ad formats
Leverage diverse advertising formats and channels, such as display advertisements, social media promotions, and email campaigns, to engage your target audience across multiple settings while maintaining the novelty of your message.
A/B testing
Regularly test different elements of your ads, such as images, headlines, and call-to-actions, to understand what resonates best with your audience.
Respect privacy
Respect privacy standards and comply with legal requirements. Ensure clarity in data gathering processes and offer clear and easy-to-understand methods for users to decline participation in data tracking.
Clear Call-to-Action
Make sure your advertisements include a distinct and captivating call-to-action (CTA) that directs users to the next steps, such as ‘Shop Now,’ ‘Learn More,’ or ‘Get a Discount.’
Track and analyze data
Utilize analytical tools to monitor the effectiveness of your marketing campaigns. Evaluate key performance indicators such as the click-through rate (CTR), conversion rate, and return on ad spend (ROAS) to assess the performance and make data-driven optimizations as needed.
Branding consistency
Ensure that your retargeting ads maintain a uniform brand identity to foster familiarity and confidence among your target audience.
Offer incentives
You may want to consider including exclusive discounts or special promotions in your retargeting campaigns to encourage users to finalize their purchases.
Cross-channel strategies
Combine retargeting strategies across various channels to create a cohesive marketing approach, ensuring a consistent brand experience for your customers.
Avoid negative experiences
To prevent annoyance or irritation to users, it’s advisable to exclude individuals who have either already converted or displayed disinterest in your advertisements.
Landing page relevance
Make sure that the landing page connected to your advertisement aligns with the ad’s content. This alignment enhances user satisfaction and boosts conversion rates.
By adhering to these top-notch strategies, you can craft retargeting and remarketing campaigns that are not only more efficient but also more captivating for your target audience, ultimately leading to improved outcomes for your business.
Measuring Success: Remarketing vs. Retargeting Metrics
To gauge the effectiveness of your campaigns, track key metrics for both retargeting and remarketing:
| Metrics |
Description |
Retargeting |
Remarketing |
| Email Opens |
The number of times an email is opened by a recipient. |
 |
 |
| Marketing Qualified Leads (MQLs) |
Leads are more likely to become customers based on their engagement with your brand. |
|
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| Lead Conversions/CPL |
Leads directly attributed to retargeted ads, including form conversions on the landing page or in-ad conversions using in-banner lead form ads, avoiding landing page redirects. |
|
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| Nurture Touches |
Existing contacts engage with retargeting display ads featuring mid-stage or late-stage offers, nurturing them toward becoming sales-ready leads. |
|
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| View Through Conversions |
Conversions occur when a prospect views your retargeted or display ad on the web, skips the ad, but then returns to your site and converts on the landing page. |
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| Site Visits |
The number of visitors your ad campaign brings to your site is measured by ad click-throughs and view-through site visit pixels, or by comparing pre and post-retargeting campaign traffic from Google Analytics. |
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| Click-through Rates (CTR) |
The ratio of users who click on a specific link to the total number of users who view a page, email, or advertisement. |
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| Cost per Click (CPC) |
The amount you pay for each click on one of your ads. |
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| Cost per Acquisition (CPA) |
Cost to acquire a customer who clicks on an ad and completes a desired action, like filling out a form or making a purchase. |
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| Return on Investment (ROI) |
ROI is a ratio that assesses advertising efficiency, calculated by dividing revenue generated by advertising cost. Positive ROI indicates revenue surpasses advertising costs, while negative ROI implies advertising expenses exceed revenue earned. |
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By tracking these key metrics for both remarketing and retargeting campaigns, one can gain valuable insights into their performance and make data-driven adjustments to optimize their marketing strategies which will further help in achieving desired results.
Final thoughts
Understanding the distinction between retargeting and remarketing is pivotal for crafting effective digital marketing strategies.
By tailoring your approach based on your unique business goals and customer preferences, embrace retargeting and remarketing as invaluable tools in your marketing arsenal and witness your brand soar to new heights amidst the dynamic digital landscape.