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Remarketing vs Retargeting

Last updated: 16.09.2022
Author: Marija

When it comes to online advertising, there are a lot of important terms and concepts to understand, with retargeting and remarketing being no exception. Since they are quite similar, both in sound as well as meaning, we set out to break down the nuances of remarketing vs retargeting and explain why you might want to use one over the other. Keep reading!

The Difference Between Remarketing and Retargeting

The terms are often used interchangeably, and while they do overlap in some respects, there is a slight difference when we look at the remarketing vs retargeting definition

What Is Retargeting? 

As the name suggests, retargeting generally refers to ads that are served to users based on their past behavior. In other words, it is a form of online advertising that uses cookies to track user behavior and show relevant ads accordingly. 

By collecting data about the sites they visit, the actions they take, and the events they trigger, you can create audiences/segments based on this information and personalize the content of your ads. The goal is to reach users who haven’t taken the desired action and generate more conversions. Retargeting is shown to reduce cart abandonment by 6.5% which is quite the percentage when converted into profit. 

What Is Remarketing?

Remarketing is a digital marketing tactic that primarily uses email to re-engage past customers who have already done business with your brand. The goal of remarketing is to keep your customers involved with your brand, encourage them to buy more products or services, and ultimately maximize customer lifetime value. Remarketing can be an effective way to increase sales and build customer loyalty, but it’s important to do it right. 

First, you need to make sure that you have a high-quality email list. Next, segment your list so that you’re targeting the right people with the right messages. Finally, test different tactics and strategies to find what works best for your business. 

How to Choose Which One to Use — Remarketing or Retargeting?

While both strategies are helpful for things like shopping cart abandonment, the difference between retargeting and remarketing means that they would be better suited for different purposes. 

It makes more sense to use retargeting if you have a low ad budget — since this way you are reaching out to the most promising prospects, rather than spreading your net too widely. Retargeting is a good choice both when potential customers have interacted with your brand directly and when they have also checked out products similar to yours. 

Remarketing, on the other hand, is better if you want to re-engage your users/customers. It’s also a great cross-selling technique — if, for example, someone has made a purchase, a follow-up email with items that complement said product could yield results. 

The Bottom Line

Both remarketing and retargeting are effective ways to keep your brand top of mind and improve your chances of making a sale, but they work in slightly different ways. Ultimately, they have similar goals, so it’s no wonder that the line between them gets a little blurry. 

If you’re still not sure which one is right for your business when it comes to remarketing vs retargeting, professional digital marketing agencies can help you make the best choice for your needs.