Retargeting vs. Remarketing Differentiation

Retargeting and remarketing are similar digital marketing strategies that often spark confusion. Marketers tend to use the terms interchangeably, but they represent distinct approaches to re-engaging and reconnecting with audiences who have interacted with your brand in some way. 

While retargeting typically focuses on serving ads to previous website visitors after they’ve exited your site, remarketing is focused on reengagement through email. Understanding the nuances between these techniques will help you optimize customers’ buying journeys so that customers return to complete a sale or do business with you. Let’s explore the key differences to both approaches so you can leverage them for optimal results.

Difference Between Remarketing and Retargeting

While remarketing and retargeting share the goal of re-engaging audiences who have already interacted with your brand, their approach and execution are different. Here’s an explanation of what each term means, which can serve as the foundation for how to integrate them into your customer outreach strategies.

What is Remarketing?

Remarketing focuses on re-engaging past customers through direct communication channels like email or SMS. The key thing to remember is that remarketing targets past customers or leads – the people that have already converted or done business with you in some way. 

The goal with remarketing is to foster loyalty, encourage repeat sales, and maintain existing relationships. Effective remarketing campaigns rely on customer data to create personalized messages based on previous interactions or purchase history.

What is Retargeting?

Retargeting displays ads to users who have visited your website but didn’t make a purchase. The key thing to remember is that it targets both prospects and existing customers who have browsed your website without making a recent purchase (or any purchase at all). Remarketing relies on cookies (small files stored on your computer), to track visitor behavior and serve relevant ads as after your site visitor has left your website and goes on to browse other websites or social media platforms. 

The goal with retargeting is to bring potential customers back to your site to complete a transaction. It’s a strategy that’s particularly effective for recovering abandoned carts or promoting related products.

Retargeting vs Remarketing Examples

The difference between retargeting and remarketing becomes clearer with some tangible examples. The below scenarios showcase how remarketing vs. retargeting work to bring customers and prospects back to your website.

Retargeting Examples

1. Tempting pet lovers: A premium pet food brand tracks the owner of Fido, a dog that loves raw dog food. The devoted pet owner looks at several brands, reads a blog post about the benefits of raw pet food, and even adds an item to their shopping cart, but leaves without making a purchase. Later, Fido’s owner sees targeted ads on social media showcasing the exact products they viewed, along with related items like matching treats and supplements.
2. Showcasing similar products: An artisanal soap company identifies and segments visitors who’ve browsed their gift sets. They create a display ad campaign targeting this specific segment. As these discerning shoppers traverse various websites, social platforms, and other virtual destinations, they encounter display ads that show gorgeous curated soap and skincare collections that match their browsing history.
3. Growing more flowers: A heritage seed company uses dynamic testing to optimize their retargeting ads and get customers back onto their website. They show different ad variations to past visitors, featuring enticing seed collections, gardening tools, or educational content – basing the ad content on the visitor’s previous interactions with their site. They then optimize the best-performing ad types based on user engagement and interaction, making the ads even more relevant.

Remarketing Examples

1. Inspiring delicious meals: A grocery store uses customer shopping data to email personalized recipes that showcase ingredients similar to items buyers have purchased in the past. These emails feature recipes using products they’ve purchased before, along with suggestions for complementary items, and links to newly stocked items they might want to try.
2. Saving the planet: An eco-friendly home goods retailer creates targeted email campaigns by segmenting their audience based on past purchases. They might notify customers who bought reusable food containers about new matching water bottles or send an alert when a similar item is on sale. If it’s a replenishable item like toilet paper or toothpaste, they might send out emails notifying customers that their favorite brand is low in stock.  
3. Stocking up on tea: A specialty tea company sends SMS messages to previous customers that coincide with tea-based timelines and events (e.g., pumpkin spice tea in autumn, fruity tea blends as a refreshing summer treat, etc.). The messages are automated and personalized based on a customer’s past purchases and browsing behavior. They can also be timed to coincide with the customer’s typical reorder schedule.

How Does Retargeting Work?

Retargeting is like a digital tap on the shoulder, reminding potential customers or existing customers who haven’t purchased from you in a while about products they’ve shown interest in. When someone visits your website, a small piece of code (called a pixel) triggers and places or updates a cookie in their browser. This cookie acts as a digital breadcrumb trail, tracking which pages they’ve viewed.

As your visitor continues to surf the web, the cookie sends a signal to ad networks that they visited your site. The networks then display your ads on other websites they visit. It’s why you might see ads for a blender you looked at yesterday while reading today’s news.

Retargeting can be incredibly specific. You can show ads for exact products viewed, or create broader campaigns based on general site activity. Retargeted ads keep your brand top-of-mind and entice that almost-customer back to complete their purchase.

How Does Remarketing Work?

Remarketing is all about follow up. You’re sending a friendly to existing customers – people who’ve already done business with you or have converted in some way. You’ll generally remarket to an owned customer list of email addresses you’ve collected from past purchases, newsletter sign-ups, site registrations, and other conversions.

With remarketing, you segment this owned customer list based on past behaviors. Maybe it’s customers who bought winter coats last year, or those who always return and make a purchase when you’re having an annual sale. Once you bucket these customers into segments, you can create personalized messages that resonate with each group.

These messages often land in inboxes, but they can also show up as targeted ads on social media or other platforms where your customers spend their time. They’re more effective than generic email blasts or outreach campaigns because they’re relevant. You’re not just shouting into the void – you’re reaching out with offers, updates, or content that speaks directly to what that customer has shown they care about.

When To Use Retargeting Vs Remarketing

Choosing between retargeting and remarketing isn’t an either-or scenario. These strategies work best when they play together.

Retargeting shines when you’re looking to:

• Nudge window-shoppers towards a purchase
• Recover abandoned carts
• Introduce new products to interested browsers

Remarketing is your go-to for:

• Encouraging repeat purchases
• Deepening relationships with existing customers
• Cross-selling or upselling to your base

Think of ways to combine retargeting with remarketing that keep your brand top-of-mind and get people back to your website to buy. For example, a customer has just purchased a high-end camera from you. Use retargeted ads to keep your brand in front of them as they browse the web.  Deploy remarketing emails that feature complimentary accessories for their new camera or content that adds value like how-to articles and videos. 

Once you know who your audience is, you can craft complimentary remarketing and retargeting strategies that meet them wherever they are in their journey with your brand.