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What is Retargeting? 

In today’s fast-paced digital world, it can be difficult to capture a potential customer’s attention and keep it long enough to turn them into a loyal follower of your brand. This is where retargeting comes in. 

Retargeting is an effective marketing technique that allows businesses to target individuals who have previously engaged with their brand and serve them tailored ads designed to encourage conversion. 

In this article, we will explore the basics of retargeting, how it works, and some of the most effective ways to use retargeting to drive growth and revenue for your business while staying on the right side of the law! 

What does retargeting mean in the market? 

In the market, retargeting refers to a digital advertising technique that allows businesses to target people who have previously interacted with their brand, website, or advertising but have not yet converted. 

This technique involves using a small piece of code called a pixel to track these users and serve them targeted ads on other websites they visit that are part of the retargeting network. The goal of retargeting is to bring these potential customers back to the website and encourage them to complete the desired action, which can lead to increased conversions, sales, and revenue.

How is retargeting used in the market? (retargeting examples)

Retargeting is typically used to target users who are further down the marketing funnel, such as those who have added a product to their cart but did not complete the purchase, or those who have visited a website multiple times but have not yet made a purchase. It’s very popular in CRO Marketing.

With this said, you can choose to use retargeting higher up in the funnel if it best suits your business needs.

Retargeting is often used to serve targeted ads to these users on other websites they visit (eg. Facebook, Instagram, blogs etc.), that are part of the retargeting network. These ads are designed to remind the individual of the brand or product they previously interacted with and encourage them to return to the website and complete the desired action.

Retargeting can be used in a variety of ways in the market, including:

  • E-commerce: Retargeting is commonly used in e-commerce to target users who have abandoned their cart without completing a purchase. By serving targeted ads to these individuals, businesses can encourage them to return to the website and complete the purchase. 👀 Are you running an ecommerce website? See what legal documents you need here → 
  • Lead generation: Retargeting can be used in lead generation to target people who have visited a website and filled out a form but have not yet taken the desired action, such as scheduling a consultation or signing up for a service. 👀 Are you using Twitter Lead Generation? iubenda can craft that much needed privacy policy →
  • Brand awareness: Retargeting can be used to increase brand awareness by serving targeted ads to persons who have previously interacted with a brand. By keeping the brand top of mind, retargeting can help increase the likelihood that these people will remember the brand when making future purchase decisions.
  • Cross-selling and upselling: Retargeting can be used to target customers who have already made a purchase with additional offers or complementary products. By serving targeted ads to these customers, businesses can encourage them to make additional purchases and increase their lifetime value.

What is retargeting vs remarketing? 

Retargeting and remarketing are often used interchangeably, but they do have slightly different meanings in the digital marketing industry. 

Retargeting generally refers to the practice of serving targeted ads to individuals who have previously interacted with a website or brand, with the goal of encouraging them to complete a desired action, such as making a purchase. 

On the other hand, remarketing usually refers to the practice of following up with customers who have previously made a purchase or taken a specific action, with the goal of encouraging them to make another purchase or take another action. While the two terms are typically used interchangeably, it’s important to understand the nuances of each so that you can use the most effective approach for your specific marketing goals.

🔎 Want to know more about the difference between retargeting vs remarketing? See our article, Retargeting Vs Remarketing → 

Retargeting pixel and how to use them

A retargeting pixel is a small piece of code that is placed on a website to track visitors and their behavior. The pixel is triggered when a user visits a page, and the code sends information about that visit back to a retargeting platform. This information can be used to build a custom audience of users who have visited the website, and then target those users with specific ads across the internet.

To use retargeting pixels for your business, you’ll need to follow a few steps:

  1. Choose a retargeting platform: There are many platforms available that offer retargeting services, such as Google Ads, Facebook Ads, and AdRoll. Select a platform that is best suited for your business needs.
  2. Install the retargeting pixel: Once you’ve chosen a platform, follow the instructions to install the retargeting pixel on your website. This involves adding the code to your website’s header or footer.
  3. Set up your custom audience: After the pixel is installed, the platform will start tracking visitors to your website. You can use this data to create a custom audience of users who have visited your website.
  4. Create your retargeting campaign: Using the platform’s ad creation tools, create a retargeting campaign that targets the custom audience you’ve created. This campaign can include ads that feature products or services that the user has previously shown interest in.

Overall, retargeting pixels can be a powerful tool for businesses looking to reach individuals who have already shown interest in their products or services. By using retargeting pixels, you can create targeted campaigns that are more likely to convert and drive sales.

How to use retargeting and comply with privacy laws 

Using retargeting ads while being compliant with privacy laws and regulations is an essential part of any effective digital marketing strategy. Here are some best practices to follow:

Be transparent: Make sure your privacy policy clearly explains what information you collect and how it is used. Also, let users know that they are being tracked for retargeting purposes.

Give users the option to opt-in (EU) opt-out (US): Provide users with an easy way to opt-in/opt-out of retargeting. 

👀 See here for more on Opt In VS Opt Out →

In the EU, under the General Data Protection Regulation (GDPR), users must provide explicit consent before their personal data is collected and processed for advertising purposes, including retargeting. Therefore, businesses operating in the EU must provide an opt-in mechanism for retargeting ads.

In the US, the situation is a bit more complex. While there is no federal law that explicitly requires an opt-out mechanism for retargeting ads, several states have enacted privacy laws that require businesses to provide an opt-out mechanism for their customers. 

👉 For example, the California Consumer Privacy Act (CCPA) and the Virginia Consumer Data Protection Act (CDPA) both require businesses to provide consumers with the right to opt-out of the sale of their personal data, which would include data used for retargeting.

Use secure data storage: Store any data you collect from users securely, and limit access to that data only to authorized personnel.

Limit your use of sensitive data: Avoid collecting sensitive personal data, such as medical or financial information, unless it is necessary for your business.

👀 See here for What’s the best way to store sensitive data?

Follow local laws and regulations: Familiarize yourself with local privacy laws and regulations, such as the General Data Protection Regulation (GDPR) in the European Union or the California Consumer Privacy Act (CCPA) and other state laws in the United States.

By following these best practices, you can use retargeting effectively while still being compliant with privacy laws and regulations. This will help you build a strong relationship with your customers and improve your brand’s reputation in the market.

Remember, because retargeting involves tracking, it’s really important to stay on the right side of privacy laws (failure to do so can result in fines and lawsuits!)

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