Retargeting vs Remarketing: Difference and Which One Works Best?
In today’s fast-paced digital world, getting potential customers to visit your website is only half the battle. The real challenge is convincing them to come back and make a purchase. Studies show that 96% of website visitors leave without converting, which means most businesses miss out on valuable opportunities.
This is where retargeting and remarketing come in. Both strategies focus on re-engaging potential customers, but they are often confused as being the same. While they share similarities, they use different approaches and platforms to achieve their goals.
So, what’s the difference between retargeting and remarketing, and which one is the best choice for your business? Let’s dive deep into this topic and find out.
What is Retargeting?
Retargeting is a digital marketing strategy that focuses on displaying ads to users who have visited your website but did not complete a desired action (like purchasing a product or filling out a form).
Retargeting works primarily through paid advertising platforms, such as:
- Google Display Network (GDN)
- Facebook Ads
- Instagram Ads
- LinkedIn Ads
For example, imagine you visit an online clothing store but leave without buying anything. Later, while browsing Facebook or reading news online, you start seeing ads featuring the same clothes you viewed. That’s retargeting in action – it reminds you about the products and encourages you to return and buy them.
How Retargeting Works
- A visitor lands on your website but does not complete a purchase.
- A browser cookie tracks their activity.
- When the visitor browses other sites, they see your targeted ads.
- These ads remind them of your brand, increasing the chance of conversion.
Retargeting Tip: “Retargeting keeps your brand top-of-mind and encourages customers to take action.”
What is Remarketing?
Remarketing is a strategy that focuses on re-engaging past customers or leads through email marketing. It involves sending targeted emails to users who have already interacted with your brand but haven’t converted yet.
Remarketing works well for:
- Abandoned cart reminders
- Re-engaging inactive customers
- Upselling and cross-selling products
For example, if you add a smartphone to your shopping cart on Amazon but don’t complete the purchase, you might receive an email reminder saying, “You left this item in your cart – complete your purchase now!”
How Remarketing Works
- A visitor interacts with your website (browsing products, signing up, or adding items to a cart).
- They leave without taking action.
- You send them a personalized email reminding them to complete their purchase or offering a special discount.
Remarketing Tip: “Emails have a 4x higher conversion rate than social media ads—never ignore their power!”
Key Differences: Retargeting vs. Remarketing
Both strategies aim to bring back lost customers, but they use different methods. Here’s a comparison:
| Feature | Retargeting | Remarketing |
| Method | Uses display ads on Google, Facebook, and other platforms | Uses email marketing to reconnect with past visitors |
| Target Audience | People who visited your site but didn’t convert | People who engaged before (visited, signed up, or purchased) |
| Best For | Brand awareness, reminding users about products/services | Personalizing offers, nurturing leads, recovering lost customers |
| Example | Seeing ads for a product you browsed on an e-commerce site | Getting an email reminding you about an abandoned cart |
Example: A travel agency can use retargeting to show ads for “Goa Holiday Packages” to website visitors while using remarketing to email past customers about “Exclusive Goa Vacation Deals.”
“Marketing is all about relationships – retargeting and remarketing help you build stronger connections.”
Which One Works Best? Retargeting or Remarketing
The choice between retargeting and remarketing depends on your business goals.
Choose Retargeting if:
- You want to increase brand awareness.
- You sell products/services that require multiple touchpoints before purchase.
- You want to bring visitors back using engaging display ads.
Example: An online shoe store can use retargeting ads to remind visitors about a pair of sneakers they viewed.
Choose Remarketing if:
- You want to nurture leads and turn them into customers.
- You have an email list of potential buyers.
- You need to recover abandoned carts and upsell products.
Example: A SaaS company can use remarketing emails to remind free trial users to upgrade to a paid plan.
Can Retargeting and Remarketing Work Together?
Absolutely! Using both strategies creates a powerful marketing funnel. Here’s how:
Step 1: Use retargeting ads to re-engage website visitors and remind them about your product.
Step 2: Collect email addresses through lead magnets or sign-ups.
Step 3: Use remarketing emails to nurture these leads and offer special deals.
Example: A fitness center can retarget people with “Join our gym today” ads and then send remarketing emails offering a “1-week free trial.”
Final Tip: “The best marketers don’t choose between retargeting and remarketing – they use both effectively.”
Conclusion: Boost Your Conversions with the Right Strategy
- If you want quick visibility and brand awareness, go for retargeting.
- If you want to nurture leads and recover lost sales, choose remarketing.
- For maximum impact, combine both strategies to increase conversions and grow your business.
At Blow Horn Media, we specialize in performance marketing, retargeting and remarketing strategies to help businesses maximize their ROI. Need expert help?
Contact us today for a free consultation and let’s turn lost visitors into loyal customers.
Frequently Asked Questions (FAQs)
1. What is the main difference between retargeting and remarketing?
Retargeting focuses on showing paid ads to users who have previously visited your website but didn’t convert, while remarketing involves sending emails to past visitors or customers to encourage them to return and take action.
2. Is retargeting better than remarketing?
It depends on your business goals. If you want brand awareness and traffic, retargeting works best. If you want to nurture leads and increase conversions, remarketing is more effective. The best results come from combining both strategies.
3. Does retargeting increase sales?
Yes! Retargeting helps remind potential customers about your brand and increases the likelihood of conversions. Studies show that retargeted ads have a 70% higher conversion rate compared to regular ads.
4. How much does retargeting cost?
Retargeting costs vary depending on the platform, audience size, and industry. The average cost-per-click (CPC) for retargeting ads is between 5 to 30 Rupees in India, but it can be higher in competitive industries.
5. How does Google retargeting work?
Google retargeting (also called Google Remarketing Ads) tracks website visitors using cookies and displays targeted ads to them across the Google Display Network, including websites, YouTube, and mobile apps.
6. Is retargeting possible on social media platforms?
Yes! You can run retargeting ads on Facebook, Instagram, LinkedIn, Twitter, and YouTube Ads. These platforms allow you to retarget users based on website visits, engagement, or past interactions with your brand.
7. How effective is email remarketing?
Email remarketing is highly effective, with an average open rate of 45% and a conversion rate 4x higher than social media ads. It’s ideal for recovering abandoned carts and offering personalized promotions.
8. Do retargeting and remarketing violate privacy laws?
No, but businesses must comply with data privacy regulations like GDPR (Europe) and CCPA (California). In India, users must be informed about data tracking and given an option to opt out of retargeting ads or marketing emails.
9. What’s the best retargeting strategy for e-commerce websites?
For e-commerce, an ideal retargeting strategy includes:
– Dynamic retargeting ads showcasing recently viewed products
– Cart abandonment emails offering a discount
– Limited-time offers to create urgency
10. Can small businesses use retargeting and remarketing?
Absolutely! Even with a small budget, businesses can use Facebook Retargeting Ads (starting at ₹500 per day) or email remarketing through free tools like Mailchimp to increase conversions affordably.