Retargeting Definition and Its Impact on Digital Advertising

Retargeting Definition and Its Impact on Digital Advertising

Do you remember that time when you were browsing online for a new watch, a hotel room, or maybe a pair of shoes? You spent time comparing options, and maybe even added something to your cart, but in the end, you didn’t hit the “Buy” button.

You left the website, perhaps distracted by something else or deciding to think about it more. Yet, as you continued browsing the web, something interesting happened.

The very watch, hotel room, or pair of shoes you were eyeing seemed to follow you around, popping up in ads on different websites and even on your social media feeds.

It’s as if the internet was gently nudging you, reminding you of what you left behind. This phenomenon isn’t a coincidence - it’s a wise marketing strategy known as retargeting.

By understanding your initial interest, retargeting works to bring you back to complete that purchase. But how does retargeting work, and what makes it so effective? Let’s see the mechanics behind this targeted advertising.

The Moment You Didn’t Buy. How Does Retargeting Work?

Let’s revisit that moment when you left the website without making a purchase. Behind the scenes, a sophisticated process was set into motion to keep reminding you about the item you were considering buying. Here’s how retargeting works, step by step:

Retargeting Stage #1: A Unique Code is Generated

When you first visit a website, a small, invisible piece of code, often called a retargeting pixel, is generated. This code is unique to each website and is designed to track specific actions, like viewing a product or adding an item to your cart.

Retargeting Stage #2: The Code is Embedded on the Website

This retargeting code is added to the website’s pages. In short, it monitors your behavior as you browse the website. Whether you are looking at multiple products, reading reviews, or simply scrolling through, the code keeps track of your activity.

Retargeting Stage #3: Traffic is Monitored

As you move from page to page, the retargeting code monitors your actions and sends this information back to the website’s server. This data helps identify what you’re interested in and which items you’ve left behind without purchasing.

Retargeting Stage #4: The User is Identified in the Database

Once your activity is recorded, you’re identified as a potential customer in the website’s database. This identification isn’t personal - it’s usually linked to a unique ID created by the retargeting pixel. This ID allows the system to recognize you when you visit other websites within the same ad network.

Retargeting Stage #5: Messages Delivered via Multiple Communication Channels

Now that you’ve been identified, the magic of retargeting begins. Advertisements featuring the very products you looked at are delivered to you across various channels, including display ads on other websites, social media platforms, and even in your email inbox. These ads are strategically placed to remind you of your initial interest and to encourage you to return to the website to complete your purchase.