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What is Retargeting?

What is Retargeting

Retargeting Definition

Retargeting (also known as remarketing) is a powerful digital advertising strategy that shows targeted ads to people who have previously visited your website, used your app, or interacted with your brand but left without converting. It's a second chance to win over interested prospects who weren't quite ready to buy the first time.

Retargeting works by placing a tracking pixel on your website that identifies visitors and allows you to serve them relevant ads as they browse other sites and platforms. Since only 2% of visitors typically convert on their first visit, retargeting helps capture the other 98% by keeping your brand top-of-mind and encouraging them to return. Studies show retargeted visitors are 70% more likely to convert than cold traffic.

How Retargeting Works

1

Visitor Arrives

User visits your website, views products, but leaves without converting.

2

Pixel Tracks

Tracking pixel drops anonymous cookie in visitor's browser.

3

Ads Follow

As they browse web, your retargeting ads appear reminding them of your brand.

4

Visitor Returns

Engaged by ads, visitor clicks and returns to complete purchase.

Types of Retargeting

Pixel-Based Retargeting

Tracks website visitors with code snippet, shows ads automatically.

List-Based Retargeting

Upload customer emails to show ads to specific people.

Dynamic Retargeting

Shows exact products users viewed with personalized ads.

Search Retargeting

Targets users based on their search keywords and intent.

Social Retargeting

Retarget on Facebook, Instagram, LinkedIn, and other social platforms.

Video Retargeting

Target people who watched your videos but didn't convert.

Retargeting Best Practices

Key Success Factors

Segment Your Audience: Create different ads for cart abandoners, product browsers, and past customers.

Frequency Capping: Limit ad exposure to 7-10 times per user to avoid annoyance.

Compelling Offers: Use discounts, free shipping, or urgency to incentivize return visits.

Exclude Converters: Stop showing ads to people who already purchased.

Retargeting vs Cold Traffic Performance

Metric
Cold Traffic
Retargeting
Click-Through Rate
0.5-1%
3-10%
Conversion Rate
1-3%
10-20%
Cost Per Click
Higher
Lower (warm audience)
ROI
2-4x
5-10x+
Why Retargeting Works
Warm Audience
Targets Warm, Interested Audiences
Brand Recall
Increases Brand Recall
Higher Conversions
70% Higher Conversion Rates
Lower CPA
Lower Cost Per Acquisition
Cart Recovery
Recovers Abandoned Carts
Better ROI
5-10x Better ROI
Retargeting on Paidwork Ads
Powerful Retargeting with Paidwork Ads

Paidwork Ads Retargeting Performance

15-25%
Retargeting Conversion Rate
70%
Higher Than Cold Traffic
90-95%
Lower Costs
30M+
Retargetable Users
AI-Powered
Audience Optimization
Dynamic
Personalized Ads

Frequently Asked Questions About Retargeting

What is retargeting in digital advertising?

Retargeting (also called remarketing) is a digital advertising strategy that shows ads to people who have previously visited your website, used your app, or interacted with your brand but didn't convert. It works by placing a tracking pixel on your site that "follows" visitors around the web, allowing you to serve them targeted ads reminding them about your products or services.

How does retargeting work?

Retargeting works by placing a small piece of code (pixel) on your website that drops an anonymous cookie in visitors' browsers. When they leave without converting and browse other sites, the cookie signals ad platforms to show your retargeting ads. This keeps your brand top-of-mind and encourages visitors to return and complete their purchase or desired action.

What is the difference between retargeting and remarketing?

Retargeting and remarketing are often used interchangeably, but technically: Retargeting typically refers to display ads shown to past website visitors across the web, while Remarketing often refers to email campaigns targeting past customers or leads. However, most advertisers use both terms to mean the same thing—re-engaging people who have previously interacted with your brand.

Why is retargeting so effective?

Retargeting is highly effective because it targets warm audiences who already know your brand. Studies show retargeted visitors are 70% more likely to convert, have 10x higher click-through rates than cold audiences, require lower cost per acquisition, and benefit from increased brand recall. Only 2% of visitors convert on first visit, so retargeting captures the other 98% who need more touchpoints.

What types of retargeting exist?

Main retargeting types include: Pixel-based retargeting (tracks website visitors), List-based retargeting (targets uploaded email lists), Dynamic retargeting (shows specific products viewed), Search retargeting (targets based on search behavior), Social media retargeting (on Facebook, Instagram, LinkedIn), Video retargeting (targets video viewers), and CRM retargeting (uses customer data for personalized ads).

How can I set up a retargeting campaign?

To set up retargeting: 1) Install tracking pixel on your website, 2) Build audience segments (cart abandoners, product viewers, etc.), 3) Create compelling ad creatives with clear offers, 4) Set frequency caps to avoid ad fatigue, 5) Define exclusions (recent converters), 6) Set appropriate attribution windows (30-90 days), 7) Launch campaign and monitor performance, 8) Continuously optimize based on conversion data.

What is a good conversion rate for retargeting?

Retargeting typically achieves much higher conversion rates than cold traffic. Average retargeting conversion rates range from 2-5% for cold audiences to 10-20% for engaged retargeting audiences. Cart abandonment retargeting often sees 20-30% recovery rates. On Paidwork Ads, retargeting campaigns achieve 15-25% conversion rates due to highly engaged users and precise targeting capabilities.

How does retargeting work on Paidwork Ads?

Paidwork Ads offers powerful retargeting capabilities with easy pixel installation, audience segmentation tools, dynamic ad personalization, and AI-powered optimization. You can retarget website visitors, app users, video viewers, and engaged audiences. With 30M+ users and 90-95% lower costs than traditional platforms, you can run cost-effective retargeting campaigns that bring back high-intent visitors at a fraction of the cost.
Ready to Win Back Lost Visitors?
Start retargeting with Paidwork Ads and achieve 15-25% conversion rates at 90-95% lower costs.