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What is Retargeting?

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Definition​

Retargeting is a method of showing ads again to people who have visited your online store or website. Simply put, it's "ads that follow you around online."

You've probably experienced this yourself. You browsed Nike sneakers on a sports shoe website but didn't buy them. Then from the next day, you see ads for those Nike sneakers everywhere - on Facebook, Instagram, YouTube, and other websites. Ever wondered "Why is this ad following me?" That's retargeting.

Retargeting is powerful for a simple reason: you're advertising to people who've already shown interest. It's much more effective than advertising to complete strangers. Think about it - at a department store, who's more likely to buy: a customer who tried on a coat and left thinking about it, or someone just passing by? Obviously the customer who tried it on. Retargeting is like "reaching out again to customers who tried it but haven't bought yet."

Features​

  • Much more effective - While general ads convert at 1-2%, retargeting converts at 3-10%. Since they're already interested, they're much more likely to buy
  • Lower advertising costs - Ad costs are about half compared to general ads. You can get twice as many customers with the same budget
  • Show personalized ads - Show sneaker ads to people who viewed sneakers, bag ads to those who viewed bags. It's personalized
  • Builds brand recall - Seeing the same brand multiple times makes it familiar and trustworthy. You think "Oh, I've seen this brand before"
  • Speeds up purchase decisions - Most people don't buy on first visit. They need time to think and compare, and showing them ads during that time makes them think "Oh right, I was considering that" and come back

How to Use​

To do retargeting properly, you need a step-by-step approach. Let's say you run an online store.

Step 1: Install Tracking Code First, you need to add a small tracking code to your website. Install Facebook Pixel or Google Ads tag. This remembers your visitors. It looks complicated but it's actually simple. Just copy and paste a few lines of code in your store's admin page.

Step 2: Segment Visitors Don't show the same ad to all visitors. Segment them by behavior. For example: people who only saw the homepage, people who viewed product pages, people who added to cart but didn't buy (most important!), people who already purchased. Show different ads to each group.

Step 3: Set Time Duration Decide how long to follow them with ads. Showing ads to someone who visited once a year ago is inefficient. For regular products: 7-30 days, expensive products (cars, appliances): 60-90 days, cheap products: 1-14 days.

Step 4: Create Ads Retargeting ads should be different from regular ads. They already know your brand, so be more direct. Examples: "Haven't forgotten this item?", "24 hours only! Special discount", "Buy now and get free shipping", "Items waiting in your cart". Creating urgency is effective.

Step 5: Show Different Ads by Stage Show different ads over time. Days 1-3: "Welcome back" (gentle), Days 4-7: "Free shipping included" (emphasize benefits), Days 8-14: "10% off today only" (discount offer), Days 15-30: "Last chance! 15% off" (strong offer). The longer time passes, the stronger the offer.

Step 6: Special Care for Cart Abandoners People who added to cart but didn't buy are most important. They almost bought. After 1 hour: start retargeting, After 24 hours: "Cart will be cleared in 24 hours", After 48 hours: offer 10% discount coupon, After 72 hours: offer free shipping. This brings back 5-15%.

Step 7: Don't Show Too Frequently Seeing the same ad 20 times a day is annoying. This is called "ad fatigue." Show 3-5 times per day, 20-30 times per week. More than that is counterproductive.

Step 8: Exclude Purchasers Showing sneaker ads to someone who already bought those sneakers is wasteful. Exclude people who already purchased. But advertising other products (sportswear, socks) is fine.

Step 9: Use Multiple Platforms Don't just use one platform - use Facebook, Instagram, Google, YouTube. When one person sees your ads across multiple places, they remember better.

Step 10: Check Results and Improve Keep checking how effective your retargeting is. CPA should be less than half of regular ads normally. If not, something needs improvement.

Examples​

Example 1: Online Clothing Store Sujin runs a women's clothing store. 50,000 people visit the website monthly but only 750 (1.5%) actually buy. The other 49,250 just leave. Sujin started retargeting. For people who viewed products: "Like this item? 10% off first purchase" ad, For people who added to cart: "Buy now and get free shipping" ad. Result? 129 people came back and purchased. With 7.5 million won in ad spend, she generated 15.5 million won in sales. Regular ads can't achieve this effect.

Example 2: Online Course Minsu sells programming online courses. 20,000 monthly website visitors, but only 400 (2%) sign up for free trial, and 80 of them (20%) convert to paid. Minsu started retargeting. For people who viewed pricing: "14-day free trial, no credit card required" ad, For trial sign-ups who don't use it: "Having trouble starting? 5-minute guide video" ad. Result? Paid customers increased from 80 to 174. More than double with the same budget.

Example 3: Local Pizza Shop Chulsoo runs a pizza delivery shop. 3,000 people monthly check the menu on website or app, but only 150 (5%) actually order. Chulsoo started Facebook retargeting. For people who viewed menu: "Hungry? 10% off first order" ads shown only during 5-9 PM, For people who added to cart but didn't buy: "Forgot to order? Free delivery!" ads shown within 1 hour. Result? 90 additional orders, and 30% became regulars.

Example 4: Fitness App Younghee created a meditation app. 10,000 monthly app downloads, but only 500 (5%) start paid subscriptions. Younghee started multi-stage retargeting. For sign-ups who don't use it: "First workout difficult? 5-minute beginner program" ad, For people who used once or twice and quit: "Come back for 30-day challenge" ad, For active users on free version: "More programs with Premium" ad. Result? Paid subscribers increased from 500 to 895.

Pros and Cons​

Pros​

  • Really effective - 3-10x higher conversion rate than regular ads, and CPA is half the cost. You can get twice as many customers with the same money
  • Recaptures lost customers - On average, 97% of website visitors don't buy on first visit. Retargeting can recapture 5-15% of them. Especially for cart abandoners, you can recapture 10-30%
  • Builds brand recall - Seeing the same brand multiple times makes it familiar and trustworthy. You feel "Oh, I saw this and it seemed good"

Cons​

  • Annoying if shown too often - Seeing the same ad 20 times a day can make people think "Why is this ad stalking me?" and actually dislike you. Frequency caps are essential
  • Feels like privacy invasion - People may feel uncomfortable being tracked. Be especially careful with sensitive products (medical, adult items)
  • Can't find new customers - Retargeting only targets people who already visited. It doesn't help find new customers. So you need both new customer ads and retargeting

FAQ​

Q: How many visitors do I need to start retargeting? A: You need at least 1,000-5,000 monthly visitors to see effects. With too few visitors, there aren't enough people to retarget, ads repeat too often, and fatigue builds quickly. If you have less than 500 monthly visitors, focus on increasing visitors first, but install the tracking code in advance. You can use the accumulated data when you start retargeting later.

Q: How much budget should I spend on retargeting? A: Allocate 10-30% of total marketing budget to retargeting. About 70-90% for new customer ads, 10-30% for retargeting. For stores with high repeat purchases or subscription services, you can increase retargeting to 20-30%. Start with 10% and gradually increase if it shows results. If retargeting ROI is 2x or more than regular ads, it's worth spending more budget.

Q: Will retargeting stop working when cookies disappear? A: While cookies are disappearing, retargeting will still be possible. But the methods are changing. Retarget using directly collected information like email or phone numbers (Facebook Custom Audiences), track logged-in users, or target groups with similar interests. In the future, data like email subscribers and registered members will become more important. Start collecting email lists diligently now.

Q: How to make retargeting not feel too invasive? A: Follow a few principles. First, don't exceed 3-5 times per day, 20-30 times per week. Second, don't repeat the same image - rotate 3-5 versions. Third, don't track beyond 30 days. Fourth, don't just say "Buy" - provide useful information or benefits. Fifth, make the "stop showing this ad" button clear. Sixth, be careful with sensitive products like medical or adult items. Most importantly, think from the customer's perspective.