What is Retargeting?
Also known as: Remarketing
Showing ads specifically to users who have already interacted with your brand — visited your site, viewed a product, abandoned a cart.
The detailed definition
Retargeting is demand-capture, not demand-generation. It works by re-engaging users who already know your brand and need a nudge to convert. ROAS on retargeting campaigns typically looks dramatically higher than prospecting — because the audience is already qualified — but the absolute incremental revenue is usually modest. The trap: retargeting is incrementally easy to over-credit. If a user was going to convert anyway, retargeting catches the conversion but didn't cause it. Lift testing (showing the ad to half the audience, holding back half) is the cleanest way to measure true retargeting incremental value. Most teams find 30–60% of retargeting-credited conversions are non-incremental.
Related terms
Frequently asked about Retargeting
›Is retargeting profitable?
On paper, usually yes — retargeting ROAS often looks great. In incremental terms (would the conversion have happened without it?), the picture is murkier. Holdout tests typically show 30–60% of retargeting-credited conversions would have happened anyway. Retargeting is more a defense than offense.
›How is retargeting different from prospecting?
Prospecting targets users who don't yet know your brand. Retargeting targets users who already engaged. Prospecting builds the funnel; retargeting closes it. Healthy paid programs invest more in prospecting; retargeting is the smaller bottom-funnel layer.
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