Remarketing VS Retargeting: A Guide on Digital Marketing Tactics

18 June 2020

If you've ever wondered about remarketing vs retargeting and which tactic you should use when, you're going to want to read our comprehensive guide!.

Kompass International

By Kompass International

18 June 2020

Only about two percent of people convert and complete a sale the first time they visit your website. Does this number seem low? If so, there’s a reason for this.

The fact is, you must win people over before they are going to decide to purchase from your company over the competition.

While a lot of web traffic is great, those numbers don’t always result in sales. The good news is, there are digital marketing strategies you can use to help nurture these visitors. By doing so, you can encourage them to come back and complete a sale.

Two of the most popular strategies are remarketing and retargeting. However, many don’t know the difference between the two. Keep reading to learn more about remarketing vs. retargeting here.

The Basics of Retargeting

Retargeting is usually used for the placement of online ads and display ads. They are posted based on a user’s activity on your website. Once someone lands on your site, a cookie is set.

With the cookie in place, you can begin to target the individual with ads based on the user’s actions while they were on your site. The ads appear on other sites they visit – which gives you the term “retargeting.”

One of the things that make retargeting appealing is that it’s handled through third-party websites such as the Google display network. This provides you with the best opportunity to reach former visitors regardless of where they are or what site they are visiting.

When compared to a non-targeted display campaign, retargeting gives you much higher engagement. It’s not uncommon to see 0.30 to 0.95 percent effectiveness, which is three to 10 times higher than the industry average.

Starting Out with Retargeting

If you are new to using retargeting, you need to get to know some of the common pitfalls that you may experience. The main issue is that your retargeting efforts may create feelings of mistrust or even annoy some customers.

Also, if you retarget customers with ads that are presented on sites that aren’t related to the product or service being advertised, it can create negative sentiment. As a result, you have to be careful with how you plan your retargeting efforts.

While this is true, sentiment about retargeting isn’t all bad. Many people are encouraged to go ahead and purchase the item they looked at on your site when they see it advertised on other websites they visit.

The Basics of Remarketing

While you may often hear of retargeting tools called remarketing tools; “remarketing” is the process used to re-engage a customer via email. In the realm of digital marketing, remarketing is used for describing cross-selling, upselling, shopping cart abandonment emails, and others.

The most popular and effective remarketing efforts are the ones that provide emails when something is on sale or offering some type of appreciation bonus or discount. Cart abandonment emails are also beneficial, but not as effective as the other two.

Drive Higher Conversions with Remarketing

Think about it, most people check their email several times a day. As a result, it’s easy to reach back out to customers after they have visited your site with one of the remarketing emails mentioned above.

The remarketing email you send serves as a reminder to the visitor about what they left behind. In some cases, this motivates a lead to return to their shopping cart or their wish list to finalize the purchase they almost made before.

Because a visitor has already expressed interest in a specific product, there is a good chance that a small reminder can help influence the purchase decision positively.

Remarketing vs. Retargeting: How and When to Use Each

Now that you understand the difference in remarketing and retargeting, it’s important to learn when you should use each strategy. While the goal of each of thee is the same – to encourage more conversions from someone who has shown interest in your brand – they utilize different methods to achieve success.

Because remarketing utilizes email campaigns, this approach is best when email is the ideal option for the message you are trying to send. While retargeting ads are limited when it comes to the total amount of content you can deliver in an ad, emails give you more space.

As a result, remarketing is smart when trying to send a visitor a reminder of what they have left in their cart, or if they are trying to cross-sell, upsell, or provide some promotional offer.

For more flexibility regarding the content or if you want to reach more customers than retargeting ads, remarketing also allows you to reach those who may be interested in services or products you offer. Keep in mind though that with remarketing, you can only reach people who have visited your site in the past.

With retargeting, you can get your brand in front of a new audience by reaching individuals who have taken any action online that are similar to your existing customers.

Making a Decision

In the end, the decision between remarketing vs. retargeting is dependent on the end goal. There is no such thing as a one-size-fits-all solution. Also, one of these tactics isn’t better than the other.

Both approaches allow you to reach back out to visitors to your site and can help increase your conversions. Therefore, it is a good idea to make both remarketing and retargeting part of your bigger digital marketing strategy.

If you need more information about developing an effective digital marketing strategy that utilizes remarketing and retargeting, check out our services. We can help you achieve your digital marketing go


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