Confused about the difference between remarketing (also known as re-marketing) and retargeting (also known as re-targeting)? You’re not alone! These terms are often used interchangeably, but are they really the same?

Short answer: not exactly.

In the world of online advertising, remarketing and retargeting share similar goals, but there are distinct differences worth understanding. The key difference lies in the strategies employed and the target audiences.

Let’s dive into the differences between these two strategies, and when it’s best to use each one.

Remarketing & Retargeting: Similar, But Different

Digital marketers invest a lot of time optimizing audiences, testing ads, and analyzing data. It can be a lengthy process, and only a small percentage of visitors end up converting. While your website might see a lot of web traffic, this doesn’t always translate into sales right away. Most visitors don’t make a purchase the first time they visit your site.

That’s where these marketing strategies become crucial: building relationships with potential customers before they’re ready to buy.

Often, the best targets are those who have already interacted with your website or brand in some way. Remarketing and retargeting both offer the opportunity to reach these people—people who are more likely to convert than first-time visitors. These strategies can transform your marketing efforts.

Now, let’s dissect remarketing and retargeting so you can fully grasp the differences between them.

What is Retargeting?

Retargeting can be achieved in a few different ways.

Generally, it refers to showing ads to users who have previously interacted with your website but didn’t complete a purchase.

When someone visits your website, clicks on a product, or takes an action you want them to take, a cookie is placed in their browser. With this information, you can “retarget” them with ads based on their previous interactions once they leave your site.

These ads are served through third-party platforms like the Google Display Network or Facebook, allowing your ads to appear on other websites they visit.

Retargeting can be broken down into two types: “on-site” and “off-site” events. Depending on the type of interaction you want to target, your strategy will differ.

Targeting “On-Site” Interactions

On-site interaction is an important component of retargeting.

This approach targets people who have already visited your website, interacted with your products or services, or taken other actions but haven’t completed a sale.

Retargeting those who have interacted with your website can significantly improve conversion rates and help brands remain memorable to potential customers.

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Targeting Engagement on Your Website

To create effective targeted marketing campaigns, you can focus on individuals who interact with your brand in various ways, such as:

• Targeting users who have interacted with products.
• Targeting based on the channel by which users found your website (social media, search engines, or other inbound channels).
• Contacting leads on your email list who have shown interest but haven’t yet converted.

These parameters can be easily set up on multiple platforms, including:

• Google Ads
• Google Analytics
• Meta (Facebook) Ads
• And other similar platforms

Compared to campaigns without retargeting, retargeting campaigns typically yield higher engagement and conversion rates. This is because marketing to those who have already shown interest in your brand or industry is more efficient.

Targeting External Engagement

Retargeting initially focused primarily on user actions that occurred directly on your website. However, this dynamic has changed as users spend increasing amounts of time on social media platforms. Product and brand information is no longer confined to a single platform but is dispersed across various spaces.

This shift means that audience engagement is no longer solely related to your website but also occurs on external platforms. Social media platforms like Meta (Facebook) quickly recognized this trend and began offering tools allowing brands to target users based on their interactions with your brand on these platforms.

This makes it possible to retarget users who have interacted with your Page, events, or other brand activities on Facebook and other social networks, even those who have not yet become customers. This gave rise to “off-site” engagement targeting.

What is the Difference Between Retargeting and Remarketing?

The terms “retargeting” and “remarketing” are often used interchangeably, which can create some confusion. While both aim to re-engage potential or existing customers, the strategies behind each differ slightly.

Retargeting focuses on strategies to guide potential customers through the sales funnel. (The sales funnel refers to the entire process a customer goes through from initial awareness to final purchase – editor’s note)

Remarketing, on the other hand, is about re-engaging with existing customers through platforms like email or paid advertising. It includes tactics such as sending emails to encourage customers to renew a service or upsell other products. Remarketing can also involve using a customer’s purchase history to remind them of products they might be interested in and often includes paid advertising targeted at existing customer bases.

While the terms may seem interchangeable, remember that the fundamental goal of both strategies is to re-engage users—whether they are potential or existing customers. As these two strategies now merge across different platforms, the line between retargeting and remarketing has blurred over time.

Email marketing used to be separate from paid media, but today, the two strategies are combined to increase conversion rates.

Conclusion

Whether you’re using retargeting to push potential customers closer to a purchase or remarketing to remind existing customers of their next steps, both strategies are crucial for growing your brand. By effectively utilizing platforms like Google Ads, Google Analytics, and Meta Ads, you can optimize your retargeting and remarketing efforts to increase engagement and improve conversion rates.

However, in recent years, the two strategies have become somewhat interchangeable.
Why is this?
Well, platforms like Google Ads and Meta Ads introduced the option to target audiences using email customer lists a long time ago.
Email is no longer an island, isolated from the world of paid media.

Here’s how it works on Facebook Ads:
Facebook Ads screenshot, August 2024

Here’s how Google Ads handles it:
Google Ads screenshot, August 2024

When you upload an email list, the platform matches those email addresses with user login information.
The matched list is then used to serve ads to those users (assuming it meets the minimum audience size, which varies by platform).
Alternatively, the same list can be used for exclusions in your campaigns, ensuring that those users don’t see your ads, meaning the focus remains on acquiring new customers.
Now the lines are blurred: the same information used in email marketing is now leveraged to target those same users through paid advertising.

Alternatively, you can target the same email list using different messaging based on the purpose of those lists.

When to Use Retargeting vs. Remarketing

Choosing between retargeting and remarketing ultimately depends on your strategy.
Incorporating both strategies into your marketing approach is a great way to steadily improve conversion rates. It doesn’t need to be an either/or choice.

On the one hand, retargeting allows you to reach potentially new customers who have shown interest through paid platforms like Google or Meta Ads.
On the other hand, remarketing targets existing customers, aiming to encourage repeat business.
Since both strategies focus on users who have already shown interest, they tend to be more cost-effective than running ads to a general audience.

So, let’s break down when you should consider using one strategy over the other.

Prioritize Retargeting as a Strategy

As discussed, retargeting focuses on reaching potential customers who have interacted with your brand in some way.
A solid retargeting plan is essential in the following situations:

• Your primary goal is to acquire new customers.
• Your product/service is generally a low-repurchase-rate product/service.
• You are already investing a reasonable amount in paid advertising to increase awareness.

The key consideration here is whether you’re already investing in brand awareness campaigns.
If you’re spending your marketing budget to attract new users, following up with retargeting campaigns is essential.

Most users won’t make a purchase immediately after discovering your brand or product/service.
This doesn’t mean your brand awareness efforts are wasted!
By nurturing these potential customers through retargeting and guiding them through the conversion funnel, you will see increased conversions.

Prioritize Remarketing as a Strategy

To summarize, remarketing is all about engaging with customers who have already purchased from your brand.
You should consider adding remarketing to your strategy if the following applies:

• You have a product or service that benefits from repeat purchases.
• You want to increase customer lifetime value.
• You have customer data (e.g., email addresses, purchase history) that you can use to personalize your marketing messages.

If your brand offers products or services that customers typically repurchase, you likely have opportunities to increase revenue by upselling complementary or related products/services. Even with a limited marketing budget, there are effective strategies to reach and re-engage your customers.

Remarketing strategies have changed significantly in recent years, providing marketers with a variety of valuable options. Utilizing cost-effective channels like email marketing and SMS offers an excellent way to reconnect with existing customers. These strategies allow you to remind them of products they need or introduce them to new products they might be interested in.

Nurturing existing customers post-purchase helps build long-term customer relationships. This not only aids in customer retention but also turns your loyal customers into your brand’s most enthusiastic advocates. Word-of-mouth marketing, though often overlooked, can be one of your most powerful assets.

Retargeting vs. Remarketing: Key Takeaways

Over time, the lines between retargeting and remarketing have blurred, reflecting the broader evolution of digital marketing. Despite the overlap, the core objective remains the same: to improve conversion rates among potential customers. However, their strategies differ.

Retargeting primarily targets users who have interacted with a brand but haven’t completed a purchase. This is often done through paid advertising and may involve various targeting options. Remarketing, on the other hand, focuses on re-engaging past customers, often through email marketing campaigns or paid ads, to promote additional products and encourage repeat purchases.

As digital marketing platforms become more integrated, the distinction between retargeting and remarketing blurs further. Rather than asking which approach is better, ask: Which combination of strategies delivers the best results for your brand?

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