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What is Retargeting (Remarketing)? - Retargeting Definition

Retargeting is indispensable for Digital Marketing. Most of the e-commerce web sites are using this feature. Retargeting, often defined as Remarketing, is a type of online advertising that helps a company show its product to a customer after a visit. Customers, while using other apps or browsing other websites, might see your product in ads. In other words, Retargeting is customizing ads in accordance to customers' visits.

Retargetting or remarketing illustration image

How does Retargeting Work?

Retargeting works with cookies. Your web developer places a small code on your website which can be referred as a pixel. This code can not be noticed by your site visitors, hence, website performance remains the same. When a visitor comes, the code activates a browser cookie. Later, when that visitor browses another website, that cookie retargets advertisements. Therefore, those ads only serve the ones who visited your website in the past. With this technology, potential customers also see relevant ads.

On the other hand, your company is spending money on ads which are focused on potential customers.

Where Should You Display Your Retargeting Ads?

If you want to reach your potential customers, you need to understand your customer type and where they are. According to Google stats, 95% of a person's time spent on the Web is reading news or blogs. You can optimize your ads to only be shown on those kinds of websites. However, you need to carefully diagnose your customer type. Just because people are reading the news, that doesn't mean your potential customers are reading the news all the time.

You can understand your customers by investigating websites or more specifically which websites will lead to better leads. After your research, you can start customizing your code and displaying your ads in those particular places. That way, your conversion rates will peak higher than ever.

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Related Terms

Click-Through Rate (CTR)

Conversion Rate

Customer Acquisition Cost (CAC)

Pay per Click Ad (PPC)

Lead Marketing

Return on Ads Spend (ROAS)