Retargeting, also known as remarketing, is one of the most effective tools in the eCommerce marketer's arsenal. It’s not just a buzzword — it’s a proven strategy that helps brands re-engage potential customers who didn’t convert the first time. According to Invesp, website visitors who are retargeted with display ads are 70% more likely to convert.

In this comprehensive guide, we’ll dive into what retargeting is, how it works, types of campaigns, tools to use, and actionable tips to build successful retargeting strategies that drive conversions and grow revenue.

What Is Retargeting in eCommerce?

Retargeting is a form of online advertising that helps you re-engage visitors who left your eCommerce website without making a purchase. Unlike cold outreach or standard advertising, retargeting focuses on users who have already shown interest in your products or services.

For example, if a shopper visits your online store and adds a product to their cart but leaves without checking out, a retargeting campaign can remind them of the item they were considering and offer a discount or incentive to complete the purchase.

Key Stats:

• Only 2% of shoppers convert on their first visit to an online store. (Source: AdRoll)

• Retargeting can lead to a 147% increase in conversion rate. (Mailchimp)

Why Retargeting Works So Well

1. Warmer Audience

Retargeting doesn’t waste time on cold leads. You’re targeting users who are already familiar with your brand.

2. Personalization

You can show ads based on browsing behavior, cart content, or even time spent on certain pages.

3. Multi-Channel Reach

Retargeting works across platforms like Google Display Network, Facebook, Instagram, TikTok, and even email.

4. Increased ROI

Because you’re targeting a smaller, more qualified audience, your ad spend is more efficient and your ROI tends to be higher.

➡️ Learn more at WordStream’s Retargeting Guide.

Types of Retargeting Campaigns

1. Pixel-Based Retargeting

This involves placing a JavaScript code (pixel) on your website that tracks user behavior. When a visitor leaves your site, the pixel triggers ads across various platforms.

• Best for: High-traffic sites

• Platforms: Meta Pixel, Google Ads Remarketing

2. List-Based Retargeting

You upload a list of email addresses or phone numbers to platforms like Facebook or Google. Those users are then served targeted ads.

• Best for: Email list subscribers or past customers

• Tools: Klaviyo, Mailchimp

3. Dynamic Retargeting

Show ads featuring exact products users viewed or added to cart.

• Best for: eCommerce stores with multiple SKUs

• Tools: Google Dynamic Remarketing, Facebook Dynamic Ads

4. Search Retargeting

Target users based on the keywords they used to find your site.

• Best for: SEO-heavy brands

• Tools: AdRoll

➡️ For more, see HubSpot’s Ad Retargeting Strategies.

Best Practices for eCommerce Retargeting

1. Segment Your Audiences

Group users based on their behavior:

• Viewed product pages

• Added to cart

• Reached checkout

• Past customers

Use tools like Google Analytics or Hotjar to track segments.

2. Cap Frequency

Too many ads = ad fatigue. Limit the number of times a user sees your ad in a given day or week.

3. Use Strong CTAs

Examples:

• "Still thinking it over?"

• "Come back and get 10% off!"

• "Limited stock available — act fast!"

4. Leverage Video Ads

Video ads on Instagram, Facebook, and YouTube can boost engagement.

➡️ Check out Meta’s video ad specs.

5. A/B Test Constantly

Test different creatives, messages, and offers. Use tools like Optimizely or Google Optimize.

How to Set Up Your First Campaign

Step 1: Install the Pixel

Use platforms like:

• Meta Pixel

• Google Ads Tag

Step 2: Define Your Audiences

Segment by:

• Product pages visited

• Cart abandoned

• Time spent on site

• Geographic location

Step 3: Create Ad Creatives

Design eye-catching ads using Canva or Adobe Express.

Step 4: Launch and Monitor

Use dashboards from:

• Google Ads

• Facebook Business Manager

Tools to Use for Retargeting

➡️ For Shopify stores, consider using Shopify's retargeting apps.

Retargeting Across Platforms

Facebook & Instagram

Use Facebook Dynamic Ads with Meta Pixel.

Google Display Network

Run retargeting ads on millions of websites.

TikTok Retargeting

Use TikTok Pixel to track and retarget younger audiences. TikTok for Business.

Email Retargeting

Send cart abandonment emails, browse abandonment emails, and post-purchase flows.

➡️ Get started with Klaviyo’s email automation.

Measuring Success: KPIs to Track

• Click-through Rate (CTR)

• Cost per Acquisition (CPA)

• Return on Ad Spend (ROAS)

• Conversion Rate

• Cart Recovery Rate

Use tools like Google Analytics, Shopify Reports, and Facebook Ads Manager.

Common Mistakes to Avoid

• Not segmenting audiences

• Using generic creatives

• Overwhelming users with frequency

• Not optimizing landing pages

• Ignoring mobile responsiveness

➡️ Learn more at Neil Patel's guide to retargeting.

Advanced Retargeting Strategies

1. Custom Audience Segmentation

   • Segment audiences into micro-groups for hyper-targeted messaging.

   • ➡️ Learn how to effectively segment your audience with this HubSpot article.

   • Utilize CRM data to personalize campaigns based on individual user behavior.

2. Cross-Device Retargeting

   • Implement cross-device tracking tools to maintain consistency in your marketing efforts.

   • ➡️ For an in-depth understanding, check out WordStream's cross-device retargeting guide.

   • Ensure your ads reach users across multiple devices seamlessly.

3. Geolocation-Based Retargeting

   • Ideal for promoting location-based offers or regional promotions.

   • ➡️ Discover more about geolocation targeting in this insightful Criteo post.

   • Tailor your ads based on user location to enhance relevance and engagement.

4. Sequential Messaging

   • This strategy builds a stronger connection and increases the likelihood of conversion.

   • ➡️ Dive deeper into sequential messaging techniques at AdRoll's blog.

   • Create a narrative by showing ads in a specific sequence to guide a user through the conversion funnel.

5. Recency and Frequency Optimization

   • Balance ad frequency to avoid user fatigue while keeping your brand top of mind.

   • ➡️ For more tips on ad frequency, visit Neil Patel's guide.

   • Adjust the recency of when an ad is shown after a site visit to optimize effectiveness.

Actionable Insights to Enhance Your Retargeting Campaigns

• Ad Creative Dynamism: Invest in dynamic creatives that adapt to user preferences. Tools like Google Web Designer can assist in crafting engaging and responsive display ads.

• Incentive Offers: Introduce timely incentives such as limited-time discounts or exclusive bundles to increase the urgency for conversion.

• Peak Time Targeting: Schedule your campaigns to align with peak user activity times for heightened impact.

• Remarketing Lists for Search Ads (RLSA): Tailor search ads to users who have previously visited your website, customizing bids and keywords accordingly.

• Granular Tracking and Analytics: Leverage Google Tag Manager for precise tracking and a comprehensive understanding of user actions.

Top Tools for Enhanced Retargeting

• BlueConic: For unifying customer data and optimizing interactions across touchpoints.

• Optimizely: For A/B testing and personalization, enhancing campaign efficacy through data-driven decisions.

• Google Analytics 4: To gain advanced insights and predictive metrics to refine user segmentation and targeting.

Common Pitfalls in Retargeting

• Ignoring Attribution Models: Understand the role of each channel in conversion to allocate budget effectively.

• Underutilizing Customer Feedback: Use reviews and ratings to refine and personalize retargeting tactics.

• Neglecting Privacy Compliance: Stay updated with GDPR and CCPA regulations to ensure ethical retargeting practices.

Final Thoughts

Retargeting campaigns can transform your eCommerce business by re-engaging the majority of your visitors who don’t convert on the first visit. When done right, retargeting improves customer journey touchpoints, lifts conversions, and drives serious ROI.

Stay consistent, test different formats, and always optimize based on data. With the right tools and strategies, you’ll turn more browsers into buyers.

➡️ Related Resource: eCommerce SEO Checklist

➡️ Tool: Mailchimp Retargeting Ads

➡️ Guide: Meta Dynamic Ads for eCommerce

➡️ Tool: Criteo Retargeting