Re-targeting or Stalking The science behind frequency limits

Retargeting vs. Remarketing: How to Choose the Best Strategy for Your Online Business

Have you ever walked out of an online store with a cart full of goodies, only to change your mind a few seconds later? Well, it turns out you’re not alone!

Recent studies have revealed that nearly 70% of online shoppers abandon their cart without completing the purchase. This results in an average loss of $18+ billion annually! 

A whopping 96% of web visitors across the world leave without converting.

What a waste of potential conversion opportunities, right?  

It’s the harsh reality of the ever-evolving digital landscape: capturing and retaining customer attention is a constant challenge for online businesses! 

Enter Retargeting and Remarketing – two powerful strategies designed to reignite interest and re-engage with those distracted visitors who slipped away. Both approaches try to win back people who already checked out your stuff. They nudge the visitors to come back and maybe buy something this time! 

Although both email marketers and display advertisers use these two terms interchangeably, they don’t mean the same thing. 

Retargeting involves reaching out to users who have interacted with your website but haven’t taken the desired action, while remarketing targets individuals based on their previous interactions with your brand, often through email campaigns.

Understanding the nuances between retargeting and remarketing is not only beneficial, but it’s crucial for securing online success. So, In today’s guide, we’ll dive into a head-to-head comparison of Retargeting vs. Remarketing to explore the distinctions between these two approaches, explore their workings, and equip you with the knowledge needed to choose the best strategy for your online business. 

Without wasting any more time, let’s get down to it. 

What is Retargeting in Digital Marketing?

Imagine you land on a cool clothing website, browse their collection, and check out some amazing motorbike jackets!

But then something came up. You got distracted, closed the tab, and had to leave the store empty-handed. It’s quite normal to forget all about that online store within a few moments,

But guess what? The brand you just interacted with doesn’t give up on you! That night, you see targeted ads on your phone showcasing those exact jackets you admired, reigniting your desire to buy those cool jackets. That, my friend, is the power of retargeting in action!

There are several kinds of retargeting campaigns used for online businesses across the globe.

Here are the main types:  

  • Website Retargeting: Also known as site retargeting, this targets users who have already visited your website at least once. Retargeting website visitors is crucial for increasing conversion rates
  • Search Retargeting: This targets users who have searched for products similar to what you offer on search engines. Ads will appear on those users’ search engine results pages (SERPs) to capture their interest.
  • Dynamic Retargeting: This uses website visitor data to personalize retargeting ads and has the potential to boost revenue by up to 40%
  • Video/display Retargeting: This targets users who have watched your video content with video ads displayed on other platforms. 
  • Social Media Retargeting: Commonly known as social retargeting, this targets users who have interacted with your brand on social media platforms with relevant ads displayed on those same platforms.

Retargeting reminds people about your business even after they leave your website. Companies like Amazon, eBay, and even smaller businesses use platforms like Google Ads or Facebook/Meta Ads to reconnect with potential customers who showed interest but didn’t follow through.

How Does Retargeting Work?

How do retargeting ads work, you ask? Here’s how: 

Retargeting works like a digital detective, leaving little breadcrumbs in the form of cookies or tracking pixels when users visit your website. These sneaky bits of code follow the visitors around the web, reminding them of the products they left behind. 

This lets businesses influence you to come back and complete that purchase. The scope of retargeting is vast. It follows you around the web – on social media, phone apps, and other websites – reminding you about the cool stuff you saw before. 

Remember, more than 50% of your visitors won’t buy on the first visit! Retargeting helps remind them about your business after they leave. Studies show it takes an average customer 7 interactions with your brand before they decide to buy. 

I bet retargeting marketing makes a lot of sense now, right? 

It’s like that friendly nudge from a salesperson saying, “Hey, remember those jackets you loved? They’re still waiting for you!” 

Ads that follow you around the web (re-targeting) are way more effective than regular display ads, or even Google Shopping Ads you come across online. We’re talking 10X better or even more! Studies show they can increase searches for your online brand by a whopping 1046%!

Now that’s some progress!

Understanding The Remarketing Strategy

It’s time to explore what is remarketing in digital marketing and how it works. 

To define remarketing, it is the method of using ads to target past website visitors or customers with promotional messages based on their past interactions.

let’s say you did buy that killer jacket and are happy with the purchase. A few weeks later, you receive an email/ad from the store offering a discount on a matching pair of sunglasses that goes perfectly with your newly bought jacket. 

This, my friend, is the magic of digital remarketing advertising!

Companies like Spotify, Airbnb, and countless Woocommerce stores use email marketing to reconnect with their audience and drive them back to their site.

How Remarketing Works

Remarketing primarily leverages the email addresses of your customers (with their permission, of course) to send targeted messages based on their past purchases and browsing history. They might get emails about things they looked at before, or special offers to entice them to come back to your online business.

It’s like that same friendly salesperson remembering you and suggesting something awesome that complements your style and looks. 

Remarketing Works in Two Ways

  1. Tiny trackers (Pixel-based): These bits of code (Pixel) follow people around your website and see what they look at. This lets you know what products they’re interested in.
  2. Customer lists (List-based): Based on what people do on your site, you can put them in different groups. For example, a list of people who left something in their cart, and another for loyal customers.

Aside from boosting your ad engagement by up to 400%, Remarketing emails also can:

  • Remind your clients about that awesome stuff they have left in their shopping cart (we’ve all been there!).
  • Suggest cool things based on what they bought before (who doesn’t love matching accessories?).
  • Say “Thanks for shopping with us!” and offer special deals (because loyal customers deserve perks!).
  • Even dust off your customer’s wishlist and remind them of those must-have items (because sometimes treats are necessary!).

However, Remarketing isn’t just about emails! It can also be like getting a friendly text (mobile notification) about something you liked, seeing a special offer on social media, or even receiving a personalized catalog in the mail. It all depends on what info you share with the company.

Source: google-ads-remarketing-large.png (2550×1450) (ppcexpo.com) 

Here’s another cool thing: product/content remarketing banners/emails can even win back customers who haven’t interacted with your WooCommerce store in a while. 

Imagine you haven’t bought anything from that clothing store in months, but then you receive a special birthday offer — a discount on a new collection! Suddenly, you’re reminded of their fantastic selection and tempted to treat yourself.

Retargeting vs. Remarketing: Key Differences

Now riddle me this, Are retargeting and remarketing the same thing? 

For those who are still confused, retargeting are remarketing provide similar results, but aren’t quite the same.

Retargeting is all about reminding website visitors who haven’t converted yet while remarketing focuses on nurturing relationships and driving repeat business from existing customers. However, they can work seamlessly together like a dream team!

[In quotes]

Remarketing and retargeting are like super-powered marketing tools. They use info people leave behind online (what they looked at/bought) to show them exactly what they might be interested in. It’s more than just throwing ads at people and hoping they stick. It’s like whispering sweet details (about cool products) in the ears of people who already showed interest!

Source: Remarketing-or-Retargeting..jpg (480×360) (valasys.com) 

Even though they use different methods, both retargeting and remarketing can help you reconnect with people who checked out your products/services before. So, what is the difference between remarketing and retargeting exactly? 

Let’s find out.

Primary Sales Channel

Retargeting primarily relies on display ads and social media platforms to reach potential customers who have interacted with your website but have yet to convert. 

On the other hand, remarketing primarily uses email as its primary sales channel, targeting users based on their past interactions with a brand’s website or products. 

So, while retargeting focuses on reaching users through ads across various online platforms, remarketing ads revolve around engaging with users through personalized emails.

Source: 642c5501a910114799aa9f72_6058bcf99e79597b0e0ea47b_nutNhQJKoTVCGVxVx4mVI8yAcomiU7l–E6xuFjTHnZk4Rl6yrVvtowe_dcybRx7iu44yWTLhdKi9mxwyyxhmebwh5oyPHdYCiHgkY4Ty_FsT-3-KC0w3M-DldpWdK1nN77-IgiJ.png (798×557) (website-files.com) 

Goals and Objectives

Retargeting aims to capture the interest of potential customers who haven’t converted yet, reminding them about your brand and nudging them toward a first-time purchase.

The primary goal here can be to generate awareness, drive conversion rate, increase customer lifetime values, reduce cart abandonment, or introduces new products.

Remarketing, however, focuses on a different goal entirely. It uses email marketing to nurture relationships with existing customers or subscribers. 

These emails might be about past purchases, offer exclusive deals, or simply keep the brand top-of-mind. The goal is to build customer satisfaction/loyalty and encourage repeat business or continued engagement with the brand.

Audience Targeting

Retargeting focuses on re-engaging users who have interacted with your website but haven’t completed a desired action, such as making a purchase or filling out a form. 

It targets individuals based on their browsing behavior, using tracking pixels or cookies to display ads to them across various platforms.

On the other hand, remarketing targets individuals based on their previous interactions with your brand, typically through email campaigns. It relies on your email list to reach out to users who have shown interest in your products or services but haven’t converted yet.

Data Collection Method

Retargeting primarily relies on tracking user behavior through cookies or Pixel (Code snippets for FB) placed on a website. It uses this data to identify visitors who have interacted with specific pages or products but haven’t converted.

On the other hand, remarketing primarily relies on data collected from email lists or customer databases. It targets individuals based on their past interactions with a brand, such as signing up for a newsletter, or downloading a lead magnet. 

Source: liq-blog-uk-retargeting-vs-remarketing-image-1024×298.png (1024×298) (localiq.co.uk)

Simply put, retargeting focuses on website activity, while remarketing leverages customer data from email subscriptions or previous purchases.

Timeframe

Retargeting typically occurs in real-time, targeting users with ads immediately after they interact with a website without completing a desired action, like making a purchase. 

In contrast, remarketing involves reaching out to users over a more extended period, often via email campaigns, based on their past interactions with a brand or website, even if those interactions occurred days or weeks ago. 

So, retargeting is immediate, while remarketing has a more prolonged timeframe.

Effectiveness

Retargeting tends to be more effective for capturing users’ attention across various websites through display ads, as it reminds them of products or services they previously viewed. 

On the other hand, remarketing ads, especially through personalized emails, often yield higher conversion rates as they directly reach users in their inboxes, nurturing a more intimate connection with the brand. 

In other words, while retargeting campaigns cast a wider net, remarketing campaigns tend to reel in a more engaged audience ready to take action.

Ad Content

Retargeting typically involves serving display ads or banners to users who have interacted with your website but didn’t convert. These ads often showcase the specific products or pages that the user viewed, enticing them to return and complete their purchase.

On the other hand, remarketing focuses on email campaigns targeted at individuals who have provided their email addresses or interacted with your brand in some way. 

The ad content in remarketing emails is more personalized and can include special offers, discounts, or reminders about abandoned carts, aiming to re-engage the recipient and encourage them to take action.

Here are the key remarketing and retargeting differences you need to know about:

SubjectRetargeting Remarketing
Primary Sales ChannelDisplay ads and social media platformsEmails
Goals and ObjectivesGenerate awareness Drive conversion Reduce cart abandonmentIntroduce new products Nurture relationships with existing customersIncrease customer lifetime values 
Target AudienceWebsite visitors, App usersExisting customers/subscribers
Data Collection MethodCookies or pixelsEmail lists or customer databases
TimeframeReal-timeDelayed 
EffectivenessMore effective for capturing users’ attentionMore effective for improving conversion rates
Ad ContentDisplay ads or bannersTargeted Email Campaigns
Place of InteractionOn your websiteOutside of your website

[Need Infographics]

Benefits of Retargeting

So, retargeting and remarking are similar but not the same. Now the question is, 

what are the benefits of retargeting/remarketing for your online business? 

In this section, let’s explore why retargeting is like a superhero for online businesses, boosting brand awareness, and turning curious clicks into loyal customers. Here’s how retargeting can help elevate your online business.  

Increase Brand Visibility

Retargeting can create a more positive brand perception by showing potential customers you’re invested in their experience. Retargeting with helpful reminders or personalized recommendations can demonstrate attentiveness and customer focus.

By following website visitors with relevant ads, retargeting also keeps your brand top-of-mind and increases brand recognition. This can be especially helpful for new businesses or those competing in a crowded marketplace.

As a result, an astounding 77% of marketers today use retargeting in their Facebook and Instagram advertising strategies!

Improve Conversion Rates

Retargeting reminds website visitors who have already shown interest in your products, making them more likely to convert into paying customers. 

You can use retargeting campaigns to showcase special offers and discounts to website visitors who haven’t converted yet. This can provide an extra incentive to complete a purchase.

By serving targeted ads to individuals who have already engaged with your brand, retargeting can help drive conversions and increase revenue. According to a survey, 90% of marketers agree that retargeted ads perform equally or better than other digital marketing channels.

Source: M5-4-Benefits-of-Retargeting.jpg (667×256) (flyingvgroup.com) 

Reduce Cart Abandonment

A significant portion of online shoppers abandon their carts before checkout. Retargeting allows you to reach these potential customers with targeted ads reminding them about the items left behind, potentially bringing them back to complete the purchase. 

By retargeting customers who abandon their carts, your online business can potentially boost its conversion rate by around 3 times. 

Remember, In the eCommerce market, the average website conversion rate stands at a mere 1.65%. However, with retargeting, you unlock the potential to re-engage the vast majority of users who didn’t convert initially, accounting for the remaining 98.35%.

Retargeting allows you to display highly relevant ads based on a user’s browsing behavior. This personalized approach can be much more effective than generic ads, leading to a higher click-through rate, lower cart abandonment rate, and better return on investment (ROI).

Cost-Effective Reach

Compared to acquiring new customers, retargeting existing website visitors is generally a more cost-effective marketing strategy. You’re reaching a pre-qualified audience who has already shown interest in your brand.

Remember, Retargeting ad CPC is usually around 50% cheaper than the search ads. 

Retargeting leverages user data to tailor ad campaigns, allowing you to target specific demographics, interests, and browsing behavior. This data-driven approach can help you optimize your marketing efforts for better results.

Benefits of Remarketing

Now it’s time to nurture those relationships and turn them into lifelong fans! 

Remarketing goes beyond ads, utilizing the power of email to create a personalized shopping experience that keeps your brand top-of-mind and wallets open. 

Buckle up, because we’re diving into the benefits of remarketing for your online business! So, here goes: 

Nurture Customer Relationships

Remarketing allows you to build stronger relationships with existing customers by keeping your brand top-of-mind and fostering ongoing communication. Consistent remarketing efforts help nurture relationships with existing customers, fostering loyalty and repeat business. 

By staying connected with past customers through personalized emails, remarketing can encourage repeat business and reduce customer churn. Building a base of loyal customers not only drives revenue but also reduces reliance on costly acquisition channels.

Source: lead-nurturing-tactics-1024×586.png (1024×586) (activecampaign.com)

Remarketing also allows you to reach out to customers who haven’t interacted with your brand in a while. Targeted email campaigns with special offers or incentives can re-engage these customers and bring them back to your WooCommerce store.

Drive Repeat Purchases

By staying in touch with past customers through personalized emails or ads, you can encourage them to make repeat purchases and become brand advocates. 

Remarketing campaigns provide valuable insights into user behavior and preferences. By analyzing metrics such as click-through rates, conversion rates, and engagement levels, you can gain a deeper understanding of your audience and fine-tune your marketing strategies accordingly.

According to recent studies, a significant 79% of consumers only want to engage with offers that align with their past interactions with a business.

Personalized communication and relevant offers through remarketing can foster customer loyalty and create brand advocates. Loyal customers are more likely to recommend your brand to others and become repeat buyers.

Source: 1694088782310 (720×420) (licdn.com) 

Promote New Products or Services

Remarketing emails can be used to promote complementary products or upgraded versions of items a customer has previously purchased. This can increase average order value and boost your revenue.

Even if users didn’t make a purchase during their initial visit, remarketing efforts ensure they remember your brand when they’re ready to buy. Consistent exposure through remarketing reinforces brand recall, increasing the likelihood of future engagement and purchases.

This approach enables online business owners to Inform their existing customers about new product launches, service offerings, or promotions through targeted email campaigns. A single remarketing campaign has the potential to boost conversion rates by as much as 161%.

Cross-Selling & Upselling Opportunities

Remarketing allows you to showcase related or complementary products to users based on their past purchase history or browsing behavior. 

By highlighting relevant products, you can encourage users to explore additional offerings and increase their order value. This strategy not only drives more sales but also enhances the overall shopping experience for customers.

With remarketing, you’ll also be able to segment your email list based on past purchases, demographics, or interests. This enables you to send highly targeted emails that resonate with each segment, increasing engagement and conversion rates.

Retargeting or Remarketing: What to Choose for Your Online Business

Now that you’ve experienced the magic of both retargeting and remarketing, the question remains: 

Retargeting vs. remarketing: which one is the best for your online business? 

Or, could a dream team combo be the ultimate weapon for marketing success? 

Let’s explore the factors to consider when choosing the right strategy (or a winning hybrid) to supercharge your customer engagement and sales: 

Your Business Goals

It’s crucial to consider your overarching business objectives when choosing between retargeting and remarketing. If your primary goal is to increase immediate sales and conversions, retargeting may be the preferred option as it focuses on reaching users who have already shown interest in your products or services. 

On the other hand, if your goal is to build long-term relationships with your existing customers and drive repeat purchases, remarketing via email campaigns may be more effective in nurturing customer loyalty.

Product/Service Type

The type of product or service you offer can also influence your choice between retargeting and remarketing. For example, if you sell high-value items or products with a longer sales cycle, retargeting may be beneficial for staying top-of-mind with potential customers until they’re ready to make a purchase. 

Conversely, if you offer subscription-based services or consumable products that require regular replenishment, remarketing through email campaigns can help encourage repeat purchases and drive customer retention.

Customer Awareness Level

Next, you have to consider the level of awareness your target audience has about your brand and offerings. If you’re targeting users who are already familiar with your brand, have visited your website, or engaged with your content, retargeting can be an effective way to re-engage these warm leads and move them further down the sales funnel

Source: marketing-funnel-diagram.png (805×604) (connectio.io) 

On the other hand, if you’re targeting users who may be less familiar with your brand or products, remarketing via email campaigns can help educate and nurture these leads over time, leading to increased brand awareness and trust.

Data Availability

It’s also important to assess the availability and quality of data you have about your target audience. Retargeting campaigns rely on tracking user behavior and interactions with your website, so having access to robust data-tracking tools and analytics is essential for effectively targeting and optimizing these campaigns. 

Alternatively, remarketing campaigns via email rely on your email list and customer data, so ensuring that your data is accurate and up-to-date is crucial for delivering personalized and relevant messaging to your audience. 

Budget and Resources Available

Lastly, evaluate your budget and available resources for marketing efforts when deciding between retargeting and remarketing. Retargeting campaigns typically require investment in ad spending to display ads across various platforms, as well as resources for creating ad creatives and optimizing campaigns. 

In opposition, remarketing campaigns via email may have lower upfront costs but still require investment in crafting compelling email content and segmenting your audience effectively. Consider your budget constraints and resource allocation when determining which approach is the most feasible for your business.

Choosing Retargeting and Remarketing For Your WooCommerce Business

Phew, that was a lot of information to process!

But, the hard part is over. Now that you’ve seen the power of both retargeting and remarketing, let’s explore the best scenarios for each strategy, along with the ultimate dream team approach: The Hybrid Method (Retargeting + Remarketing).

When to Choose Retargeting

Remember, Retargeting isn’t just for past visitors! 

While it can target people who’ve checked out your website before, it can also reach a wider audience. It’s also effective for targeting audiences who might not have directly interacted with your brand but have engaged with similar brands or conducted searches related to your brand recently.

Also, If you have a small daily PPC budget, it’s wise to invest it in a retargeting campaign. When you’re limited to just a few clicks each day, it’s crucial to ensure they come from the most promising prospects. Recent studies reveal that clicks from retargeted ads convert at a 43% higher rate than regular display ad clicks.

Source: M5-4-Retargeting-stats.png (1466×678) (flyingvgroup.com)

[need infographics]

Retargeting can also help you improve your brand visibility and engagement. For example, imagine a visitor browsing your products, but leaving without buying anything. Then, later on, while scrolling through their phone, they see an ad from your online brand, reigniting the spark in an instant! 

They might not click it right away, but seeing the brand pop up again reminds them of the awesome products they saw earlier. This repeated exposure over time makes the brand more familiar, so when that person is finally ready to buy, your brand is the first thing that’ll pop into their head. 

Don’t just take my word for it. On Facebook, retargeted ads are 76% more likely to get clicks than regular display ads!

When to Choose Remarketing

Remarketing offers a powerful way to reconnect with website visitors who haven’t converted yet. By sending targeted emails with personalized messages and special offers, you can entice them to come back and complete their purchase. 

This helps recover lost sales from abandoned carts and builds customer loyalty by nurturing relationships with past visitors. The result? Higher conversion rates and a better return on investment for your marketing efforts.

Also, remarketing is particularly beneficial for nurturing relationships with existing customers and encouraging repeat purchases. By segmenting your email list based on past purchase history or customer preferences, you can deliver relevant content and promotions that resonate with each individual, fostering loyalty and driving long-term customer value.

Source: primary-goals-of-remarketing-617c1c5849b3d.jpg (750×500) (amazonaws.com)

Additionally, remarketing is invaluable for enhancing brand visibility and staying top-of-mind with target audiences. 

By consistently engaging with users across multiple touchpoints, such as email, social media, and display ads, your online business can reinforce brand recall and ensure that your brand remains front and center when users are ready to make a purchase. 

Time for a Hybrid Approach

If your online business has a customer base with varying levels of engagement with your brand, following the hybrid approach will bring the best result. As retargeting and remarketing focus on different stages of your conversion funnel, a hybrid method will give you the most coverage. 

For example, you can use retargeting to reach users who have visited specific product pages or added items to their cart but haven’t completed the purchase. At the same time, you can also use remarketing to nurture relationships with these users after they’ve made their purchase.

You can also deliver personalized messages and offers to keep the brand top-of-mind and encourage repeat purchases, increasing customer lifetime value over time. 

Retargeting can capture users who are in the consideration stage, reminding them of products they’ve shown interest in and nudging them toward conversion. Meanwhile, remarketing can focus on users who have already made a purchase, aiming to upsell or cross-sell complementary products and drive additional revenue. 

Pro Tips and Best Practices for Retargeting and Remarketing Campaigns

Now that you’ve seen the power of both retargeting and remarketing, let’s dive into some actionable tips to supercharge your ad campaigns and turn your website visitors into loyal customers! Here are some key strategies to keep in mind:

Pro Tips on Retargeting Advertising Campaigns

  • Tailor retargeting ads to display products users recently viewed.
  • Focus on how your product solves their browsing problem.
  • Create a sense of urgency with limited-time offers or disappearing inventory.
  • Show a few different ad options (3-5) to keep people interested in your brand.
  • Retarget website visitors who abandoned their carts with a special discount to incentivize them to return and complete their purchases.
  • Set frequency caps on your retargeting display ads to avoid bombarding people with emails.
  • Use A/B testing with different types of retargeting to craft the best ad creatives and messaging.
  • Limit retargeting emails to feature no more than 3 to 5 products.

Remarketing Pro Tips

  • Personalize emails based on past purchases or browsing behavior.
  • Provide blog posts, tutorials, or guides related to their interests.
  • Reward past customers with exclusive discounts or early access to new products.
  • Re-engage inactive customers with special offers or “We miss you” campaigns.
  • Segment your email list for even more targeted messaging.
  • Make sure your landing pages are relevant and user-friendly.
  • Constantly monitor remarketing metrics for data-driven insights. 

Takeaway

Both retargeting and remarketing are powerful tools in your online business arsenal that can help you recapture lost sales, nurture customer relationships, and ultimately boost your brand loyalty. So, put these dynamic duos to work and transform those window shoppers into lifelong fans, or even your brand advocates. 

In the end, successful online marketing is all about knowing your customers, setting clear goals, and picking the right tools. Whether you use retargeting, remarketing, or both, it’s about connecting with your audience and getting results. This can boost your sales now and build loyal customers who keep coming back for more!

Source: Cointraffic_Remarketing—Retargeting-1.jpg (1920×1080) 

And that’s about it for today. This article has tried to provide a neutral overview of retargeting and remarketing advertising campaigns. We’ve discussed what they are, how they work, and when to choose which approach for optimum results. I hope this article and the Pro Tips help secure your online success. 

Thanks for reading this far. Please feel free to share your thoughts and opinions in the comment section below. If you want more in-depth articles on how to level up your online business or need professional support, don’t hesitate to approach us. We’re here to help your online business grow and thrive in this competitive world of online commerce.  Happy online business to you! 

2 thoughts
  1. I read your most of the blog and all are really helpful and amazing. You tried to describe clearly in every blog. Really amazing!

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