What Is Retargeting and How Does It Work?

A Simple Guide to One of Digital Marketing’s Most Effective Tools

Ever visited a website, browsed around, and then started seeing ads for that same brand everywhere? That’s not a coincidence—it’s retargeting.

Retargeting (also called remarketing) is a paid media tactic that shows ads to people who’ve already interacted with your brand. It’s one of the most effective ways to stay top of mind, bring people back, and turn missed opportunities into conversions.

In this article, we’ll break down exactly how retargeting works, why it’s so powerful, and how to use it for your business.

What Is Retargeting?

Retargeting is a form of online advertising that targets people who have:

• Visited your website
  
• Viewed a product or service
  
• Clicked on an ad
  
• Engaged with your content (like a video or social post)
  

These users already know you exist. Retargeting simply reminds them—across websites, social platforms, and even email—to come back and take action.

Why Retargeting Works

Most people don’t convert on the first visit. In fact, 98% of website visitors leave without taking action.

Retargeting helps fix that by:

• Staying visible: You show up again as they scroll or browse.
  
• Building trust: Repeated exposure increases familiarity and credibility.
  
• Recapturing interest: You catch them in a better mindset to buy or engage.
  

Bottom line: Retargeting turns cold traffic into warm leads—and warm leads into customers.

How Retargeting Works

Here’s the step-by-step:

1. A user visits your site

They check out your services or products but don’t convert.

2. A pixel tracks their visit

A small piece of code (called a pixel or tag) drops a browser cookie. This cookie identifies that user as someone who’s visited your site.

3. They see your ads later

As they browse other sites or scroll social media, your ads appear—reminding them of your brand or product.

4. They return and convert

Once they’re ready, they come back and complete the action you wanted (buy, sign up, contact, etc.).

Types of Retargeting

Here are the most common ways to retarget:

Website Retargeting

Shows ads to people who’ve visited specific pages on your site.
Example: Show an ad to someone who viewed your “Pricing” page but didn’t submit the form.

Cart Abandonment Retargeting

Targets users who added items to their cart but didn’t check out.
Example: “Still thinking it over? Here’s 10% off.”

List-Based Retargeting

Uses email addresses from your CRM or mailing list to retarget known contacts.
Example: Retarget newsletter subscribers with a new offer.

Engagement-Based Retargeting

Retargets users who’ve engaged with your social content, ads, or videos.
Example: Show an ad to someone who watched 50% of your explainer video on Facebook.

Platforms That Support Retargeting

You can run retargeting campaigns across platforms, or consolidate your efforts in one channel depending on where your audience lives.

Retargeting vs. Standard Ads

When to Use Retargeting

Retargeting is ideal if you:

• Get regular traffic but low conversions
  
• Run paid ads and want to stay top of mind
  
• Sell products or services with longer decision cycles
  
• Offer free trials, demos, or content downloads
  
• Want to upsell or re-engage past customers
  

Bonus Tip: Retargeting works best when paired with clear conversion goals and optimized landing pages.

Not Sure How to Set It Up?

Retargeting isn’t just a “nice to have”—it’s a must if you want to make the most of your ad budget. By reaching people who already know your brand, you boost the chances of conversion without constantly chasing new traffic.

Whether you’re running search, social, or display ads, adding retargeting to the mix can drastically improve results.

At Root Company, we help businesses build and optimize full-funnel campaigns—including retargeting strategies that actually convert. From pixel setup to campaign strategy, we’ve got you covered.

Book your free strategy call now »