How retargeting works
Retargeting splits into two broad layers that work together.
External retargeting is paid advertising shown in ad networks to an audience that has already
been on the site. The user is marked by a pixel during the visit and then sees the brand’s
advertising on other properties. It is judged on ROAS and CPA.
Onsite retargeting is personalization of the site itself for the returning visitor. No media
budget is required here: the storefront, banners and recommendation blocks adapt to the view
history and the basket. This works on traffic you have already paid for, so the economics are
usually better than those of external advertising.
Retargeting versus remarketing
| Parameter | Retargeting | Remarketing |
|---|---|---|
| Historical meaning | Advertising by cookie or pixel | Working with a contact base |
| Main channel | Ad networks | Email, push, onsite |
| Needs a media budget | Yes | Not always |
| Metric | ROAS, CPA | CR, revenue per contact |
In practice the terms get mixed — both are about bringing a warm user back. More detail in the
remarketing entry.
Typical scenarios
- Abandoned basket — return the user to an unfinished order.
- Abandoned view — remind them of a product they looked at but did not add to the basket.
- Return without a purchase — a personal storefront for the repeat visit.
- Upsell — complementary products alongside a recent order.
Common errors
- One creative for everyone — retargeting without segmentation by interest behaves like
ordinary advertising. - No frequency cap — intrusive repetition produces irritation and banner blindness.
- Ignoring the onsite layer — the whole budget goes into external advertising, even though a
returning visitor is cheaper to convert with personalization on the site itself.