How to Use Retargeting to Increase Conversions

by | Nov 30, 2023 | Marketing | 0 comments

Retargeting and Its Impact on Conversions: What Should You Know?


Retargeting is a buzzword that many have heard but few truly understand. In its essence, retargeting, also known as remarketing, is a strategic approach in digital marketing where businesses target users who have previously interacted with their website or online content, but did not convert into customers. Imagine window shopping: you glance at an item, feel the urge to buy it but decide to walk away. Retargeting is that soft nudge or reminder about that item once you’ve moved on to the next store.

Why is Retargeting Essential?

Retargeting isn’t just a fancy term; it’s a foundational element in enhancing online conversion rates. Let’s delve deeper into its significance:

  1. Engagement and Recall: The online world is flooded with content. Users may visit dozens of websites in a single day. With such overload, it’s easy to forget a product or service they found intriguing. Retargeting serves as a reminder, reigniting their initial interest and ensuring your brand stays at the forefront of their thoughts.
  2. Higher Conversion Rates: Studies have shown that retargeted users are more likely to convert by 70% compared to non-retargeted users. This statistic underlines the power of addressing an audience already familiar with your offerings. Instead of trying to attract new potential customers, retargeting taps into an audience that’s already warm, enhancing the chances of conversion.
  3. Cost-Effective: It’s generally more expensive to acquire a new customer than to retain an existing one. In the same vein, targeting an individual who’s already shown interest in your product or service tends to yield better ROI. Retargeting ensures your marketing budget is being spent efficiently by focusing on users who are more likely to convert.
  4. Brand Awareness: Even if a retargeted ad doesn’t result in an immediate sale, it still reinforces your brand’s presence. Over time, repeated exposure can build trust and brand familiarity, leading to eventual conversions.

Now that we’ve established the importance of retargeting, the next step is understanding how to effectively implement it. Continue reading for proven strategies and tools tailored for your business’s retargeting needs.

Strategies and Tools to Implement Retargeting in Your Business

Understanding the Basics

Before diving into the strategies, it’s crucial to understand the two primary forms of retargeting: Pixel-based and List-based. While the former involves using cookies to retarget users after they leave a site, the latter targets users from a provided list, typically via email marketing.

Key Retargeting Strategies

Every business has unique needs, but some overarching strategies can drive success in retargeting efforts for various industries. Here are some tailored strategies to consider:

  1. Segmentation: Avoid a one-size-fits-all approach. Segment your audience based on their interactions. For example, you could have separate campaigns for visitors who abandoned their cart versus those who simply browsed a product page.
  2. Frequency Capping: Bombarding users with ads can be counterproductive. Limit the number of times your ad appears to a user within a certain timeframe to prevent ad fatigue and maintain a positive brand image.
  3. Burn Pixels: Once a user converts, it’s best to stop showing them the same retargeted ads. Implementing burn pixels ensures users aren’t shown ads for products they’ve already purchased.
  4. Engaging Ad Content: Retargeting is not just about reminding; it’s about re-engaging. Create captivating ad content, whether it’s offering a limited-time discount or showcasing a new product feature.
  5. Test and Optimize: Continuously test your ads for different segments. Adjust based on performance metrics to ensure maximum ROI.

Must-have Retargeting Tools

In today’s digital landscape, there’s an array of tools at your disposal to simplify and optimize retargeting. Here are some industry favourites:

  • Google Ads Remarketing: This tool allows businesses to show targeted ads to users who’ve visited their website. With a vast reach and detailed analytics, it’s a staple for many marketers.
  • Facebook Pixel: With billions of active users, Facebook is a goldmine for retargeting. The Facebook Pixel is an essential tool for tracking website visitors and serving them tailored ads on the platform.
  • AdRoll: Known for its ease of use and dynamic capabilities, AdRoll offers cross-platform retargeting, ensuring your brand has a consistent presence across the web.
  • Criteo: A powerhouse in the retargeting realm, Criteo offers hyper-targeted personalization, optimizing the chances of conversion.

Implementing retargeting strategies can be transformative for businesses. However, it’s equally crucial to measure the success of your efforts. Stay tuned as we delve into key metrics in the next section.

Measuring Retargeting Success: What Metrics Matter Most?

The Importance of Measurement

Implementing retargeting is just the beginning. To truly harness its power, businesses must continually monitor and measure their campaigns’ performance. By understanding which metrics matter the most, you can optimize your strategies, ensuring that every dollar spent yields the best possible return.

Key Performance Indicators (KPIs) for Retargeting

While there are numerous metrics to consider, focusing on the most impactful ones will give you a clear picture of your retargeting campaign’s health. Here are the KPIs to keep an eye on:

  1. Click-Through Rate (CTR): This indicates the percentage of users who click on your retargeted ad after seeing it. A higher CTR often suggests that your ad is resonating with the audience.
  2. Conversion Rate: Of the users who clicked on your ad, how many took the desired action? Whether it’s making a purchase, signing up for a newsletter, or another action, this metric is paramount in gauging success.
  3. Cost Per Conversion: How much are you spending to achieve each conversion? This metric helps businesses understand the financial efficiency of their retargeting campaigns.
  4. Return on Ad Spend (ROAS): Calculate the revenue generated from your retargeting campaign and compare it to the expenditure. A positive ROAS indicates a successful campaign, while a negative one suggests room for improvement.
  5. Ad Engagement: Beyond clicks and conversions, it’s essential to know how users are engaging with your ad. Are they spending time on it? Are they sharing or commenting? This metric offers insights into the ad’s overall appeal.

Optimizing Based on Metrics

Metrics aren’t just numbers; they’re insights waiting to be acted upon. For instance, if your CTR is low, it might be time to revisit your ad’s design or messaging. Conversely, a high CTR but low conversion rate might suggest issues with the landing page or the offer itself.


In the evolving digital landscape, retargeting stands out as a robust tool to re-engage potential customers and bolster conversions. By leveraging tailored strategies, using the right tools, and continuously monitoring key metrics, businesses can make the most of their retargeting efforts. And as you consider diving deeper into the world of retargeting, remember to explore partners who can support your journey. Companies like Lilly’s Printing have witnessed firsthand the transformative power of retargeting and can offer insights and services to elevate your campaigns.


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