Retargeting
A digital advertising strategy that serves ads to users who have previously visited your website or interacted with your content, using browser cookies, pixels, or platform-specific identifiers to build audience lists. Retargeting can be site-based (targeting all visitors), page-based (targeting visitors of specific product pages), or action-based (targeting users who added to cart but did not purchase). Common retargeting platforms include Google Display Network, Meta, and programmatic DSPs. The typical retargeting window ranges from 7 to 90 days depending on the purchase cycle, with most conversions occurring within the first 7 days of the initial visit.
Why It Matters
Most website visitors leave without converting on their first visit — industry data shows that 97% of first-time visitors do not convert. Retargeting recaptures these warm prospects by staying visible as they browse other sites, significantly increasing the likelihood they return and complete a purchase. Retargeting audiences typically convert at 2-4x the rate of cold prospecting audiences and at 50-70% lower CPA. However, frequency management is critical: showing ads more than 5-7 times per user per week leads to ad fatigue and negative brand perception. Segmenting retargeting lists by funnel stage (page viewers vs. cart abandoners vs. past purchasers) allows tailored messaging that improves both relevance and conversion rates.
Example
A furniture store retargets users who viewed a specific sofa but did not purchase. The retargeting campaign shows the same sofa with a 10% discount code across display and social ads, converting 8% of retargeted visitors versus 2% of cold traffic. The team then creates three segments: viewers who spent less than 30 seconds (shown lifestyle imagery), viewers who spent over 2 minutes (shown product details and reviews), and cart abandoners (shown the discount code). This segmented approach increases retargeting ROAS from 5.2 to 8.7, and the 30-day campaign recovers $42,000 in revenue from 1,200 previously lost prospects at a CPA of $12.
Related Terms
Lookalike Audience
An audience segment created by advertising platforms that mirrors the characteristics of your existing customers using machine learning algorithms that analyze hundreds of behavioral, demographic, and interest signals. The source audience (called a seed) can be based on customer lists, website visitors, or app users. Platforms like Meta offer percentage-based sizing from 1% (most similar) to 10% (broader reach), where smaller percentages yield higher match quality but smaller audience pools. Google offers Similar Audiences and Optimized Targeting, while LinkedIn provides Predictive Audiences with analogous functionality. The minimum seed size for effective lookalikes is typically 1,000-5,000 users.
Display Advertising
Visual ads including banners, images, rich media, and video shown on websites, apps, and social media through ad networks like the Google Display Network, which reaches over 90% of internet users worldwide. Display advertising encompasses standard IAB sizes (300x250, 728x90, 160x600), responsive display ads that automatically adjust to available placements, and native ad formats that blend with surrounding content. Display campaigns operate on CPM or CPC pricing models and are commonly used for brand awareness, retargeting, and product remarketing. The average display ad CTR across industries is approximately 0.35%, significantly lower than search ads but offset by much lower costs and broader reach.