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What is Retargeting?
  1. Glossary/

What is Retargeting?

·607 words·3 mins·
Ben Schmidt
Author
I am going to help you build the impossible.

You spend a significant amount of resources getting people to visit your website. You write content, you pay for clicks, and you post on social media. Then the majority of those visitors leave without taking any action.

They do not sign up for a trial. They do not buy your product. They simply bounce.

Retargeting is the mechanism that allows you to bring them back. It is a form of online advertising that can help you keep your brand in front of bounced traffic after they leave your website. For a startup operating with a limited budget, this is a critical tool for conversion optimization.

It is generally cheaper to bring a visitor back than to find a net new visitor. Retargeting converts window shoppers into actual buyers.

How the Technology Works

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It sounds technical, but the premise is straightforward. Retargeting works by utilizing a browser technology known as a cookie.

You place a small, unobtrusive piece of code on your website. This is often referred to as a pixel. This code is unnoticeable to your site visitors and does not affect site performance. Every time a new visitor comes to your site, the code drops an anonymous browser cookie.

Later, when your cookied visitors browse the web to read the news or visit other sites, the cookie lets your retargeting provider know when to serve ads. This ensures that your ads are served only to people who have previously visited your site.

Retargeting vs. Remarketing

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These terms are often used interchangeably in the marketing world. This causes confusion for founders. They are distinct strategies.

Retargeting primarily uses paid ads to re-engage audiences on third party sites. This happens on display networks or social media feeds. It targets the anonymous user who visited but provided no contact info.

Remarketing typically involves collecting information first. It usually refers to re-engaging customers via email. You have their data, and you reach out directly.

Think of the distinction this way:

  • Retargeting captures the stranger.
  • Remarketing nurtures the lead.

Strategic Scenarios for Startups

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When should you allocate budget to this? It is not always the right move for every stage. If you have zero traffic, retargeting has no fuel. Once you have a steady stream of visitors, consider these scenarios.

Cart Abandonment This is the most common use case. A user adds a product to their cart but does not check out. You can serve them an ad featuring the exact product they viewed. This reminds them of their intent.

Brand Awareness Early stage startups often suffer from a lack of trust. A user visits your landing page but has never heard of you. By retargeting them on reputable news sites or familiar social platforms, your brand appears larger and more established than it actually is.

Content Sequencing A user reads a beginner level blog post on your site. You can retarget them with an ad for an intermediate whitepaper. This moves them down the funnel.

Risks and Considerations

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There is a fine line between being helpful and being intrusive. You do not want to annoy your potential customer.

This is where frequency caps become important. You must limit how many times a user sees your ad in a given time period. Overexposure leads to brand fatigue.

As you look at your own analytics, ask yourself these questions.

Where are people dropping off? Does seeing an ad solve the problem that caused them to leave? Are we respecting the user’s privacy while trying to grow the business?

Retargeting is a powerful lever, but it requires a strategic approach to ensure you are building value, not just noise.