Retargeting Vs Remarketing: What's The Difference and Which One Should You Choose?

Have you ever browsed a website, checked out a few products or services, and then left without making a purchase - only to see ads for those exact items popping up on other websites later? That’s the magic of retargeting. Remarketing, on the other hand, does something similar but through email. Because they share a common goal - re-engaging users who’ve already shown interest in a brand - the terms are often used interchangeably, which can be a bit confusing. However, they each rely on different tools and methods to bring those users back into the fold.

Let’s dive into each of these strategies and how they differ, or not.

What is Retargeting?

As we’ve seen before, retargeting is all about bringing back people who’ve interacted with your website but didn’t quite take the plunge - whether that’s making a purchase, signing up for a newsletter, or another action you want them to complete.

How does it work?

When someone visits your site, a tiny piece of code (known as a pixel or cookie) gets placed in their browser. As they continue browsing the web, this code allows you to show them ads for the products or services they were interested in, gently reminding them to come back and finish what they started. And, because these retargeting ads are shown to people who are already familiar with your brand, they tend to be highly effective at converting interest into action.

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What is Remarketing?

Remarketing, on the other hand, takes a slightly different approach. Instead of focusing on visitors who haven’t converted, remarketing is aimed at people who’ve already engaged with your brand in a meaningful way - like making a purchase. So, while retargeting usually involves display ads, remarketing typically uses email to reconnect with customers.

How does it work?

For example, after someone buys a product from you, a remarketing campaign might involve sending them an email offering a discount on related items, or simply thanking them for their purchase and encouraging them to shop with you again. It’s all about keeping your brand top-of-mind and nurturing the relationship you’ve already established, so they’re more likely to become repeat customers.

Are There Any Differences?

Besides the platform used, retargeting and remarketing are extremely similar in terms of their goals: to re-engaging users who’ve already shown interest in a brand, either by already having made a purchase or about to. The main difference between them lies in how they do it and the audiences they target:

• Audience: Retargeting focuses on bringing back visitors who interacted with your site but didn’t complete a purchase, while remarketing targets those who have already made a purchase or engaged with your brand more deeply.
• Medium: Retargeting usually only uses display ads that follow users across the web, whereas remarketing often involves sending personalized emails to past customers.
• Objective: The main goal of retargeting advertising is to encourage potential customers to return to your website and complete a specific action. Remarketing, on the other hand, is about nurturing existing relationships, encouraging repeat business and building customer loyalty.

Which Strategy Should You Choose?

Both strategies are highly effective and can lead to customer retention and repeat purchases. Did you know that returning visitors, who are often targeted through remarketing efforts, contribute to 48% of all e-commerce transactions? (DemandStage) And, retargeted consumers are 70% more likely to convert on a website compared to those who aren’t retargeted! (99Firms)

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So, how do you decide between retargeting and remarketing? It really depends on what you’re trying to achieve and where your customers are in their buying journey.

• Choose retargeting if you want to reach out to people who have shown interest in your products but haven’t yet made a purchase. Retargeting is especially useful for e-commerce businesses where cart abandonment is common or for high-value products where customers might need a little extra convincing.
• Choose remarketing if your goal is to stay connected with your existing customers and encourage them to make additional purchases. Remarketing is perfect for businesses that rely on customer loyalty, like subscription services, or for those looking to upsell or cross-sell products.

It’s important to note, however, that while both strategies are powerful, you shouldn’t overdo it. There’s a fine line between reminding customers about your brand and overwhelming them with ads or emails, which can feel intrusive. The key is to use retargeting and remarketing thoughtfully - as a gentle nudge rather than a constant push - to keep your brand in front of your audience without crossing the line into feeling like you’re invading their privacy.

Wrapping Up

Retargeting and remarketing are both valuable tools in a marketer’s toolkit, each with its own strengths. By understanding the differences between them and using both strategies in a balanced way, you can create a marketing approach that not only drives new conversions but also builds long-lasting relationships with your customers. After all, it’s not just about making a sale - it’s about creating a connection that keeps people coming back.

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