How Retargeting Campaigns Work
In college, I took an advertising class. It taught me what I needed to know about traditional advertising, but the social media portion wasn't as expansive.
When we covered Facebook Advertising, for example, I found it difficult to follow along with a lack of examples and the lofty overview of content. Because of that, I decided to look online for a deeper take on the subject.
I ended up watching a video that covered a subject I'd struggled with in class — retargeting. The video gave an overview of the concept, then went in-depth about how that looks on Facebook with vibrant examples, really helping a visual learner like me.
Unlike typical banner ads, retargeting ads are a form of online targeting advertising and are served to people who have already visited your website or are a contact in your database (like a lead or customer).
If you've never used retargeting before, don't worry — in the following post, we'll go through the basics of how retargeting works, explain how you can use it to support your larger marketing goals, and outline an example of a Facebook Ad retargeting campaign.
There are two main types of retargeting: pixel-based and list-based. The way each works is slightly different, and each has different advantages based on your campaign goals.
Pixel-based retargeting is a way to re-display your material to any anonymous site visitor.
List-based retargeting works after you already have someone's contact information in your database.
You can also use lists of your existing contacts for certain types of retargeting ads. To do this, upload a list of the email addresses to a retargeting campaign (usually on a social network like Facebook or Twitter), and the platform will identify users on that network who have those addresses and serve retargeting ads just to them.
Though it's a little less common than pixel-based retargeting, list-based retargeting allows you to have highly customizable criteria for your ads because it's based on more than behavior — you're choosing who goes in which list.
On the flip side, it's possible that a person in your list gave you one email address and the social network another — and in that case, they won't see your ads. Also keep in mind that because you are in charge of uploading and maintaining the list, list-based retargeting also is less automatic and timely than pixel-based retargeting.
If you've ever heard of the term "retargeting," it's likely it was in comparison to remarketing. And while the two are often mistaken for each other, they do have differences. Let's talk about when you would use either.
Retargeting vs Remarketing
While retargeting focuses on pulling in new audiences or customers through ads on social media, email or other platforms, remarketing often focuses on sales or marketing emails sent to re-engage customers.
Remarketing and retargeting are often confused with each other. Though they share similarities, retargeting allows you to reach new prospects with your ads, while remarketing focuses on re-sparking interest of your company to current or inactive old customers.
A retargeted ad helps those who’ve never heard of your company understand how your product or service fits into their lifestyle or solves a potential problem. Retargeting helps you make the message more personal.
When you analyze sales, you can determine what's popular among the audiences you're aiming to reach. For instance, if you find that a certain line of products perform really well among millennials, pull images of them into a carousel ad and use it to retarget customers. The personalization of a separate ad promoting a collection, aimed at a segment of your target market, is one example of how retargeting can be successful.
Take this ad I saw today. Despite never having made a purchase from Nasty Gal, this ad showed up on my News Feed:
This ad introduces Nasty Gal to new leads (like me) by giving an overview of diverse clothes that are popular among target audiences.
It's likely I saw this ad because I fit into Nasty Gal's target audience set on Facebook, and because my previous behavior on the social channel involved looking for reviews of similar clothing retailers.
On the other hand, to re-engage a lost or inactive customer, you might decide to use remarketing. This tactic aims to improve customer relationships by utilizing marketing tactics that
Essentially, if you want to give customers an incentive to purchase again from your company, turn to remarketing.
For customers that are already acquainted with your brand and have shown a need for your product, create a personalized message to reignite their interest. For example, if your company offers a membership, remarket to those whose memberships are expiring and are up for renewal. This email I received is an example:
This marketing email not only served as a reminder to renew my subscription but was also Thrive Market's way of reminding me about the benefits of being a member. In the email, I got to see how much I saved by using the grocery service, where my membership money was being spent, and was offered a special promotion to renew.
Because I was already familiar with the brand, Thrive was able to use the email to add personal touches and provide a snapshot of what I can enjoy (again) as a member.
Like retargeting, this tactic is successful when messages inspire action. The email's CTAs, like "Browse our options here!" told me that I could peruse my options in one click, so I did. Use remarketing efforts to remind customers of the perks that come with shopping with your brand, like easy shopping access.
Retargeting Ad Goals
Now that we have the background for how retargeting works and the different types of audiences you can segment by, we can focus on goals. The main types of retargeting campaigns you should consider running are those for awareness and those for conversion.
To generate awareness.
Awareness campaigns are useful when you want to re-engage website visitors and tell them about relevant products, features, or announcements. These ads are usually served to pixel-based lists.
The obvious drawback to awareness campaigns is that you're serving less targeted content to people who haven't engaged heavily with your brand. They're not in your contacts database, and often, there are lower expected clickthrough rates than other types of campaigns.
However, since the goal is to make prospects aware of your business, impressions and engagement are acceptable metrics to track. Often awareness campaigns are precursors to a much more effective campaign goal: conversions.
To drive conversions.
Conversion goals are just that — you want to get people to click on your ad and take a next step, such as filling out a landing page form. Conversion campaigns are best used to align a specific list with a clear next step in the flywheel, and can be measured with typical conversion metrics like website clicks, form submission, and cost-per-lead (CPL).
The best thing about a conversion campaign is that you can use it for multiple parts of the flywheel. Pixel-based ads, for instance, generate leads and will direct people to landing pages where they can give over their information.
List-based ads better qualify those leads. Ads will appear to contacts who gave you limited information and lead them to longer forms with additional fields.
To complete the buyer's journey.
Additionally, retargeting can be used to move qualified leads to complete the buyer's journey cycle. For example, you might use retargeting to send a list of contacts that have downloaded an ebook an invite to sign up for a free trial of your product. When they see how your tool can help them meet their goals, they may be inspired to become a paying customer.
To increase customer lifetime value (CLTV).
Customer lifetime value is the amount of money you can expect from a single customer throughout their entire relationship with your business. When using retargeting, customers are reminded of your brand and encouraged to continue making purchases. The more purchases they make, the higher their CLTV.
To reduce cart abandonment.
Cart abandonment is when a customer places something in their shopping cart in your online store, but leaves your website instead of checking out and making a payment. Retargeting can help you recover these customers that have abandoned their carts and serve as a reminder that the item they were interested in is still available and ready for purchase.
To introduce new products.
When you know that customers have visited your website, made a purchase, or shown general interest in your business, retargeting helps you share new products with them that align with their interests. When they see your ads, you can lead them directly back to your site to discover your new product and entice them to follow through with a purchase.
Regardless of your goal, it is important to align the positioning, creative, and next step in the conversion process — whether that's an offer landing page, site page, or request for more information — with your audience list.
List-based retargeting can have low match rates (users synced with accounts on each platform, usually by email address), so make sure you're fueling your retargeting activities with inbound content.
Retargeting Platform and Tools
Truthfully, you've got quite a few options for actually implementing your retargeting. Specific platforms like Facebook, Twitter, and LinkedIn offer native tools, and there are also tons of third-party platforms to do web and social retargeting, and we’ll recommend some below.
SharpSpring Ads, formerly Perfect Audience, is a retargeting tool that allows you to create dynamic retargeting ads and display them in newsfeeds, websites, and social media platforms for your audience members to see. You can measure the impact of your campaigns to ensure you’re on the right track, and use their powerful analytics to get up-to-date information on click through rate (CTR), revenue, and conversions.
AdRoll uses 10+ years of consumer data and behavior to help you create retargeting ads that are effective, relevant, and shown to your audience on the platforms they frequently use. If you’re a HubSpot user, AdRoll can integrate with Marketing Hub, helping you easily sync your existing contacts and create a list of targetable audience members.
ReTargeter helps you create campaigns that are customized to your individual business needs and will help you stand out from your competitors. With this high-quality tool, you’ll be able to keep your business top of mind with your audience, wherever they spend time online.
Criterio helps you retarget your audience through contextual retargeting, where they use commerce data from your existing customers to understand which channels have been successful in inspiring purchases in the past. Your ads are then placed in these same channels for users to see, as they have shown to be high-impact and effective.
As one of the earlier forms of retargeting, email retargeting is when you use information that you've previously gained about a customer or prospect, like location and name, to send them personalized emails.
While email targeting can be effective, it's important to note many of the other platforms that could also be beneficial. Although each platform you use to implement ads will be different, there are some advantages and disadvantages for choosing ones that serve up social media ads or elsewhere on the web.
Social media retargeting often works well since people are more likely to share, reply, and discuss your content on one of these well-known platforms. They can also see the ads are posted from a real account, as opposed to a small web banner ad with little text that could be posted by anyone. That being said, web retargeting works well for impressions since the ads follow your targeted audience throughout the internet, not just on a few specific social media sites.
What ad tracking method should you use to retarget people on social media who have visited your website?
If you choose to use social media as your channel for retargeting those that have visited your website, the best ad tracking method to use is to use tracking pixels.
As mentioned above, tracking pixels are pieces of code that collect information on the pages your users visit on your website. When they leave your site and go to a social media platform, they are retargeted with ads that are relevant to the pages they visit on your website.
Want to see what setting up a remarketing campaign is like? We'll walk through a step-by-step process for setting up a retargeting campaign on Facebook and measuring its success.
What is Facebook retargeting?
Facebook retargeting uses audience data to show ads and target people who have visited your website to draw them back and convert them to customers.
Facebook retargeting is no different from the other types of retargeting we've talked about — It helps you advertise to potential customers and lost leads. Facebook's technology leverages data from different profiles to help you connect with the right audience. Data, like web behavior, is used to show your ads on the right news feeds.
On Facebook, you have the advantage of its large audience. Coupled with the amount of data Facebook collects about its users, it's highly likely that the leads you lost are seeing your ad. The website looks at the previous search history of users and pulls ads that are relevant.
For example, every time I online shop for clothes and leave the site without making a purchase, the ads I see on Facebook are from the store I'd visited. If I were to use the search bar on the social media network, I would see similar results.
To run a retargeting campaign on Facebook, you'll set an ad campaign and choose your audience set — just like a regular campaign. The difference is this: In Ad Manager, you'll toggle a switch that tells the website that the campaign is a retargeting one. That way, the software will know how to filter the right target market for your ad.
For this example, we'll pretend we're setting up a remarketing campaign for HubSpot. To drive qualified leads to a free trial, we'll set up a mock Facebook retargeting campaign for leads in our database who we know are interested in marketing automation. Here's how we would set up that campaign.
How to Retarget on Facebook
- Create a list of existing contacts, or gather groups from pixels on your website.
- Upload the list to Facebook's Audience Manager.
- Determine your Destination URL.
- Segment your Ads for specific audiences.
- Set your budget.
- Create your ad.
- Track your campaign's progress.
1. Create a list of existing contacts, or gather groups from pixel on your website.
First, you'd need a list of leads to retarget. In your marketing software of choice, compile a list based on two criteria: lifecycle stage, interests based on the topic of their most recent download. If this list is sufficiently large, you can move on to the next step. If it's not, you should revisit your segmentation properties and/or type of retargeting.
2. Upload the list to Facebook's Audience Manager.
Once our list is processed, we can export the .CSV file and import it into Facebook's Custom Audience manager to match email addresses with Facebook Profiles. (There are third-party platforms that also sync these lists on social media, so feel free to pick which upload/sync option works best for your company.)
Select "Manage Your Ads'' on Facebook's advertising home page, click "Audiences" on the left toolbar. This will allow you to create a customer list by uploading a .CSV or .TXT file and options to sort by user ID, phone numbers, or emails.
Give your list an appropriate name to easily find it later. Additionally, leave at least a few hours for it to populate. if you try to create an ad immediately, the audience may not be fully loaded.
Aside from Facebook retargeting, Audience Manager will allow you to do standard targeting, which allows you to set demographic, geographic, and other audience targets for an ad -- even without a retargeting list.
3. Determine your destination URL.
To create a new campaign on Facebook, hit the green "Create Ad" button in the top right of the ad platform home screen. This will prompt you to choose an objective for your campaign. Whatever option you select, include a UTM tracking code — a snippet of text added to the end of your URL — to help you track success and attribute clicks and conversions from your campaigns. For example, we would create a campaign called "Retargeting" and our URL for the free trial would look like:
Once you create your URL, give your campaign a name. Keep similar names for your campaigns to make it easier to track if you have multiple running.
4. Segment your ads.
Select your custom audience and set the geographic location you want to target. The location is an "AND" setting, meaning if your list contains leads from all over the world and you only select "United States," some people won't be shown your ads.
Depending on your buyer personas, you can also segment by interest, behaviors, age, and other demographic settings which can help ads become even more targeted. For conversion campaigns, you're retargeting to a specific list of contacts already interested in your product, so including other Facebook categories might not make sense.
5. Set your budget.
Before even starting the campaign, have a set budget for paid tactics, broken out by channel. For Facebook campaigns, set a lifetime budget for the length of the campaign, then monitor and adjust accordingly. Most beginners should leave the bidding to "Optimize for Website Click."
You can also name your ad set at this stage, which is helpful if you'd like to differentiate lists, creative, budget, etc. for different ad sets in the same campaign (i.e. leading to the same page).
6. Creating your ad.
Each ad can have up to six images associated with it, so you can test which ones perform the best.Remember to be clear and concise with your positioning, and include relevant call-to-action buttons such as Shop Now, Learn more, Download, etc. on the bottom right of the ad.
By default, ads are shown on mobile newsfeeds, on the right column on desktops, and in partner mobile apps. Depending on where you'd like your customers to see these campaigns, you may want to turn one or all of those options off to only display in the desktop News Feed.
Some important details on Facebook ads:
- Image size is 1080 x 1080 pixels.
- Text can be used in headlines, but there are character limits depending on ad type.
- Under "Advanced Options" you can write a News Feed link description to better explain your ad and give context to users.
Once you have everything set up, go ahead and click the "Publish" button in the bottom right of the screen.
7. Tracking your progress.
Congratulations, you've now created a conversion-based retargeting ad on Facebook! Now you can track website clicks, reach, CTR, CPC, and total spend to match them up to your initial goals.
You can get a glance of how your Facebook retargeting campaigns are doing by going to your Facebook Advertising home page. If you want to dive further into the ad's metrics, you can go into the ad set where you'll see information like clicks and spending per day. It is also easy to make edits to your ad from this screen, such as extending the budget, schedule, and creative assets.
If you're using a CRM, like HubSpot, most offer tools to look at the performance of your destination URL to track views, clicks, and submissions back to specific retargeting campaigns.
Retargeting is a great way to keep your prospects engaged and interact with people who have already shown interest in your company.
While it may sound like a simple enough concept, there are many aspects of a retargeting campaign that must be worked out before you make the ad copy and creative. Be sure to give enough time to make your lists, set goals and types of campaigns, determine the platforms your ads will run on, and tie the whole conversion path together.
Originally published Aug 4, 2021 5:45:00 PM, updated August 05 2021
What is a retargeting ad campaign? ›
1. What are Retargeting Ads? Retargeting ads allow your business to show targeted ads to the users who visited your website and didn't complete a conversion – purchase an item, fill in a contact form, download a file, etc.How do I set up a retargeting campaign? ›
Go to Ads Manager and create your dynamic ad or open an existing one. In your ad set, find the Audience section and choose Retarget ads to people who interacted with your products on and off Facebook. Select a retargeting option, update the corresponding number of days and choose the products to include.What is meant by retargeting? ›
Retargeting, also known as remarketing, is the strategy of directly advertising to users who have shown interest in a product, application, or other conversion, but who have in some way lapsed from completing the conversion or retaining interest.What are 3 retargeting strategies? ›
- Retarget based on shoppers' site navigation. ...
- Segment your audience. ...
- Focus on search terms. ...
- Utilize your CRM. ...
- Connect all the data dots.
For example, if you run a blog as part of your website, you might retarget users who land on a specific blog post of yours. The content of the blog post gives you a major clue about what those users are specifically interested in.How retargeting is done? ›
Retargeting primarily uses paid ads to target audiences who have visited your website or social media profiles. Remarketing primarily uses email to target people who have already done business with your brand. That's where Google remarketing ads come in.How do you design retargeting? ›
- Define your audience. ...
- Set audience membership duration. ...
- Create a killer ad. ...
- Perform ongoing CTR optimization. ...
- Get strategic with bid management. ...
- 15 of the Best Facebook Ad Examples That Actually Work (And Why)
Immediately: If a customer leaves your site, track them very quickly by placing a retargeted ad on the next website they visit. If they abandoned their cart, retarget them with the item that's still in there, giving them a little nudge to remind them to go back and complete their purchase.When should you start retargeting ads? ›
Re: When should i start retargeting ads
Congratulations on your first sale! If you're using Google ads, for retargeting the minimum is 100 people for importing a customer list of visitors. A remarketing list is a collection of website visitors or app users gathered by snippets of code added to your site.
Retargeting is really focused on paid ads (and can take a variety of forms, and target a broad range of individuals). Remarketing is focused on email campaigns and reaching out to those who have already had interactions with, allowing for more specific upselling and messaging.
What is the difference between targeting and retargeting? ›
The basic difference comes down to the audience each approach is aiming to reach. When targeting, marketers are looking for 'cold' audiences (meaning an audience that has not interacted with your brand recently), while retargeting is aimed at warmer audiences that might have visited your website recently.What are the 4 targeting strategies? ›
- Mass marketing (undifferentiated marketing)
- Segmented marketing (differentiated marketing)
- Concentrated marketing (niche marketing)
Retargeting campaigns perform 10 times better than regular display banners. Blog.spiralytics.com stated that website visitors who are retargeted with display ads are more likely to convert by 70%.How important is retargeting? ›
With a retargeting campaign, the likelihood that consumers will return to your site and make a purchase is increased by almost 70% (Software Advice). This means that retargeting is not only a crucial step in getting your brand noticed online but in getting sales.What should retargeting ads look like? ›
Retargeting ads are paid advertisements targeting individuals who have already visited a website and interacted with products or services. Despite prior activity, they did not complete a sale or did not previously interact with a website but have similarities with existing customers.Is retargeting advertising effective? ›
Retargeting stats indicate that on average retargeting reduces cart abandonment rate by 6.5% and it varies from industry to industry and increases online sales by 20%. A study by Spiralytics from 7 industries concluded that retargeting ad placements beat all other ad placements by a lot with a 10x efficiency rate.What are some good retargeting audiences to start with? ›
- The past 30, 60, and 90 days' website visitors.
- People who visited your Pricing page in the past 30 days.
- Repeat visitors to your blog.
- Visitors of some specific landing pages and blog articles.
- The past purchasers of your online store (this audience is great for upselling!)
There are two main types of retargeting: pixel-based and list-based. The way each works is slightly different, and each has different advantages based on your campaign goals.What are the two types of remarketing? ›
There are standard remarketing and dynamic remarketing. They both follow the tenets of showing ads to previous visitors, and dynamic remarketing takes the personalization a bit further.What are retargeting platforms? ›
Retargeting software helps companies serve display ads across the internet to users who have previously visited their website.
How do I retarget people visited my website? ›
How do you retarget people on social media in your business? The most common way to retarget people is by installing a tracking code on your website. For example, by installing the Facebook Pixel on your website, you can track what pages on your website people visit, how long they spend on those pages and so on.How much is a retargeting campaign? ›
Companies spend an average $0.66 to $1.23 per click on remarketing. Understanding the cost of remarketing is one step to creating a successful campaign. It also explains why it's worth the investment. Continue reading for more information about Google's Retargeting Cost.How do I create a retargeting audience on Google? ›
- Sign in to Google Ads.
- Click the tools icon. ...
- Under the “Shared Library” section, click Audience manager.
- Make sure you're in the “Segments” section on the left-side page menu.
- To add a website visitors list, click the plus button and select Website visitors.
For most brands, we recommend putting 60-90% on prospecting budget toward prospecting, with the remaining 10-40% toward retargeting. If you're spending more than 40% of your budget on retargeting, consider expanding your budget.Can you retarget with email address? ›
Email retargeting works precisely the same way as traditional site retargeting, but allows you to target email subscribers rather than website visitors. You place a line of code in your email signature, or in the HTML of your email, and anyone who opens your email will be served ads all over the web.How do I retarget someone who clicked on my ad? ›
- Step 1: PixelMe sign-up & your free trial. ...
- Step 2: Shorten every link with PixelMe. ...
- Step 3: Share your PixelMe links on social media. ...
- Step 4: Create your custom audience with all the people who clicked on your links. ...
- Step 5: Create Facebook Ads to retarget all the people who click on your link.
Retargeting provides additional points of contact with your product and more largely your brand, increasing the likelihood that those people who know you will convert. With the ever-changing landscape of digital advertising, the fight for your audience's attention has to be won with not just quantity but also quality.Is retargeting inbound or outbound? ›
PPC retargeting is indeed an inbound marketing strategy. PPC ads for cold audiences, however, are outbound marketing. The major difference here is that, in this case, you're advertising to people that are most likely unfamiliar with your brand.What is retargeting in SEO? ›
Recycling and Recapturing Your SEO Traffic
Site retargeting is the act of pinpointing users who have visited your website previously and targeting them with advertisements around the web. Banner ads are the most common way to do this, but you can also retarget users with text ads in Google's Search Network.
Ad retargeting, also known as remarketing, is a bottom of funnel campaign tactic in which you target an audience of users who have recently engaged with your website, content, or social media and have not converted for a sale yet.
Is retargeting part of SEO? ›
Retargeting is an SEO advertising technique used to generate interest based on a user's past interactions with a brand, whether that interaction is having visited that brand's website, or having made a purchase.What is a retargeting campaign on Facebook? ›
Facebook retargeting ads are ads that allow you to reconnect with users who have already interacted with your brand in some way (on or off Facebook). This includes users who have: Shared their email with you as leads or customers. Followed your Facebook Page or interacted with it in some way.How does Facebook ad retargeting work? ›
Facebook retargeting is a PPC strategy where you show your ads to people who are familiar with your brand. They've either previously visited your website or interacted with your Facebook or Instagram page. Simply put, retargeting shows your ads to people who already know about you.How do I create a retargeting campaign on Facebook ads? ›
In your Ad set, find the Audience section and choose Retarget ads to people who interacted with your products on and off Facebook. Select a retargeting option, update the corresponding number of days and choose the products to include.How do I create a retargeting list on Facebook? ›
- Log in to your Facebook Ads Manager and select Audiences. ...
- Click on Create Audience and select Custom Audiences. ...
- Select Website Traffic. ...
- Select your target audience from the dropdown menu. ...
- Get your pixel code and place it on your website.
Typically, the minimum audience size I'll use when reaching NEW audiences is one million users – minimum. When I run ads with audience sizes of one million or more, I know many of them won't be interested in my products or even click my ads, but that's not why I target them.What is the minimum audience size for retargeting Facebook? ›
Essentially, Facebook recommends targeting a minimum of 1,000 people with your ads. You can start with that and scale from there as you get a better understanding of who your audience is. Or, you can kick off with a broader audience of 10,000 people or 100,000 folks – depending on your budget.How much should I spend on a retargeting campaign? ›
Typically, you want to spend 5%-10% of your Facebook ad budget for retargeting ads. While it's not a lot of your budget, it often results in 80% of the sales and results.