What is Retargeting and Why Do You Need It?

Have you ever been browsing the web for a specific product only to be shown an ad for that exact product on a different web site shortly thereafter ? Does it freak you out? There is no need to be alarmed. This type of digital advertising is called “retargeting” also sometimes referred to as “remarketing” and it is perfectly legit.

What is Retargeting?

Retargeting is a form of online targeted advertising by which online advertising is targeted to consumers based on their previous Internet actions. Retargeting tags online users by including a pixel within the target webpage or email, which sets a cookie in the user’s browser. Once the cookie is set, the advertiser is able to show display ads to that user elsewhere on the internet via an ad exchange.


Basically you view a product, a marketing company sets a cookie in your browser, then the same marketing company will show you an ad for that product on another web site where they also market on based on that cookie. This is probably one of the most effective forms of marketing on the web right now. It is part of a subset of digital marketing called “direct response,” which is exactly that–a type of ad that will illicit an immediate result from the potential customer.

Online Retailers

The most effective retargeting campaigns are those executed by online retailers. These are companies that sell products online. If you are an online retailer, you need to have retargeting as part of your digital marketing tool kit. There are various places called “exchanges” where you can purchase these types of ads in order to sell your product and generate greater sell through on your existing traffic. The greatest part about retargeting is that, if set up correctly, you can determine the exact cost of a conversion (i.e. Customer Acquisition Cost), which is a marketing expense that all online retailers need to keep track of and control, in order to generate a profit. Retargeting campaigns offer reports that will tell you your exact cost of acquisition, to allow you to optimize accordingly.

If you are an online retailer looking to increase sales via digital marketing, please consider retargeting, and give us a call at (305) 799-8873 to find out more about how we can help you get set up immediately.