What is the concept of "retargeting" in online advertising?

Retargeting is a powerful concept in online advertising that focuses on re-engaging users who have previously interacted with a brand’s website or specific content but did not make a purchase or complete a desired action, often referred to as "conversion."

When a user visits a website, cookies are placed in their browser to track their activity. If they leave without converting—meaning they did not make a purchase or fill out a form—the retargeting strategy uses these cookies to show targeted advertisements to that specific user as they browse other sites or social media. This approach enhances the chances of conversion by keeping the brand or product fresh in the user's mind and providing reminders of their interest.

This method stands in contrast to other potential options. For instance, showing ads to new visitors only focuses on attracting brand new audiences rather than re-engaging those who already demonstrated interest. Tracking online behavior without offering ads does not drive any action or conversions and lacks the commercial intent that retargeting aims for. Similarly, increasing cost-per-click advertising relates more to budget and bidding strategies rather than the behavioral targeting aspect that characterizes retargeting.

Through retargeting, advertisers can optimize their marketing efforts, making it more cost-effective by targeting a highly relevant and interested audience.