Businesses are constantly on the lookout for ways to stay connected with potential and existing customers. Two widely used marketing strategies, remarketing and retargeting, help brands keep their audience engaged, increase conversions, and drive revenue. While these terms are often used interchangeably, they serve distinct purposes and operate differently. 

In this blog post, we’ll discuss the difference between remarketing and retargeting, when to use each, and best practices for remarketing content to help businesses create more effective campaigns and reach the right audience at the right time.

Remarketing campaigns vs retargeting campaigns

Approach

Remarketing is more relationship-focused, aiming to re-engage customers who have previously interacted with your brand. It takes a personalized approach, often leveraging direct communication methods such as email marketing to reach past customers or visitors. By gathering data from user interactions on websites or apps, remarketing enables businesses to craft targeted and direct marketing initiatives. This could be reminding customers of products they’ve previously purchased, sending out special offers, or providing useful content to keep them engaged.

In contrast, retargeting is designed to recapture the attention of potential customers through repeated exposure. It relies on browser cookie-based technology to track users’ activity across the web and show them ads on third-party sites related to the products or services they previously viewed on your site. Instead of direct communication, retargeting involves maintaining brand visibility and keeping your business top-of-mind.

Target audience

Remarketing involves targeting people who have already engaged with your business in some capacity. These can be past customers, email subscribers, or people who have interacted with your business on your social media. The goal is to nurture these existing relationships and encourage repeat purchases.

Retargeting, on the other hand, targets people who may have shown interest but may not have engaged deeply with your business. These are usually visitors who may have browsed your website and viewed product pages but left without completing a purchase or taking a desired action. 

Goal

Remarketing focuses on strengthening existing relationships and increasing customer lifetime value. Its core objective is to build customer loyalty and drive repeat purchases. 

The primary goal of retargeting is to capture and convert leads who showed interest but left before completing an action. By keeping your brand in their line of sight, retargeting campaigns gently nudge potential customers toward conversion, whether that’s completing a purchase, signing up for a service, or taking another desired action.

Tracking mechanism

Remarketing relies heavily on customer data, particularly email lists, CRM data, and purchase history. Businesses use this data to segment customers and send targeted messages, promotions, and reminders. The tracking here is primarily first-party data collected through previous interactions, such as email sign-ups or past purchases.

Retargeting uses tracking technologies like browser cookies and pixels to monitor users’ online activity. When a user visits a website, a small piece of code (a tracking pixel) is placed in their browser. This allows businesses to show targeted ads to these users when they browse other sites. Google Ads and Facebook Ads use this method to ensure users keep seeing products or services they were previously interested in.

Understanding these key differences helps marketers deploy the right strategy at the right time, ensuring that their marketing efforts effectively nurture leads and drive conversions.

Difference between remarketing and retargeting: when to use each 

Remarketing

Looking to maintain relationships with existing customers? Remarketing should be your go-to approach. Here are some key scenarios when remarketing is most effective:

• If you have a product or service that customers may need again,e.g., groceries, you can use email remarketing to remind them of their past purchases and offer incentives to repurchase.
• Many customers abandon their carts before completing a purchase. Remarketing emails can serve as gentle reminders, sometimes paired with discounts, to encourage them to complete their transaction.
• If your brand has a seasonal sale going on or you’ve introduced a new product, a remarketing campaign can help you promote your offers to existing customers who are more likely to respond positively.
• If previous customers haven’t engaged with your brand for a while, remarketing can remind them of your value (e.g., “We miss you! Here’s 15% off your next order”).
• If someone made a purchase, remarketing emails can help promote complementary products or upgrades (e.g., “Get 20% off a tripod for your camera!”).

Moreover, you should create an email newsletter to stay in touch with your subscribers and customers. Use this newsletter to share tips for using your products, industry news (e.g., trend reports for fashion), teasers of a new product launch, and promotional offers. With PosterMyWall, creating an email newsletter is fast and easy; customize the newsletter templates related to your business niche by adding your branding elements, product images and details, and contact information. Then you can send out your newsletter emails immediately or, if you designed them in advance, schedule them to roll out at a later date. 

Retargeting

Retargeting is best for acquiring new customers. Retargeting strategies work best for recapturing the attention of those who have interacted with your brand but have not yet converted. Here’s when to use retargeting:

• If someone visited your product page, and maybe added items to their cart, but didn’t make a purchase, showing them ads of the products on third-party sites such as Facebook can remind them of what they viewed and encourage them to reconsider.

Even if someone isn’t ready to buy immediately, consistent exposure through retargeting ads ensures your brand stays top-of-mind so they’re more likely to choose you when they are ready to make a purchase.

• If you’re hosting an event, retargeting ads can remind users who showed initial interest but didn’t sign up and nudge them to take action before the deadline.

Using PosterMyWall, you can design eye-catching graphics for your social media ads. Browse through the social media templates, select the ones that match your message and business’s personality, and customize them by replacing the placeholder text, logos, and images with your own. Showcase the products that a user has already viewed or your best-selling items. Download these graphics and then use them in your social media ad campaigns. 

Best practices for each 

Remarketing 

Segment your mailing list

Not all customers have the same needs or behaviors. A successful email remarketing campaign begins with audience segmentation. Divide your email list based on factors such as:

• Purchase history: Based on a user’s past purchases, send recommendations for complementary or “frequently bought together products.”
• Browsing activity: Target users based on the products or pages they viewed.
• Engagement level: Re-engage inactive subscribers with special incentives.

Grab attention with subject lines

An eye-catching subject line can be the difference between an opened and an unopened email. Your subject line should be:

• Short and engaging (e.g., “Still Thinking About It? Here’s 10% Off!”).
• Personalized (e.g., “Sarah, Your Favorite Item is Back in Stock!”).
• Urgent (e.g., “Limited-Time Deal Just for You” or “A Special Offer is Waiting for You!”).

Optimize email timing and frequency

Sending remarketing emails at the right time can significantly impact conversion rates. Best practices include:

• Cart abandonment emails: Send within a few hours of abandonment, followed by a second email within 24-48 hours.
• Post-purchase upsell emails: Send recommendations after 1 or 2 weeks of purchase.
• Re-engagement emails: Target inactive users every few months with special offers or fresh content.

Use lead magnets to drive conversions

Giving a gentle nudge with incentives or lead magnets can be highly effective. Examples include:

• Offer free shipping to encourage purchase completion.
• Reward repeat customers with points, cashback, exclusive deals, or early access to new products.
• Offer birthday, anniversary discounts and members-only discounts to subscribers.

However, be mindful not to train customers to wait for discounts before making purchases.

Retargeting

Implement frequency capping

Control the frequency of retargeting to avoid overwhelming users. Platforms like Google Ads allow you to limit the number of times an individual sees your display ad per day, week, or month, ensuring an effective yet non-intrusive approach.

Give relevant incentives

If users viewed a product page but didn’t make a purchase, consider using the following incentives or lead magnets to encourage conversions:

• Use words that evoke a sense of urgency (e.g., “only 5 left in stock”) and FOMO (fear of missing out). This will nudge users to take the plunge.
• Include testimonials and reviews. You can add a quote from a customer and use it in the middle of the ad copy. 
• Offer discount codes and coupons. This could be some amount of, free shipping, or a BOGOF deal.

Include relevant calls-to-action (CTA)

Decide what action you want the user to take depending on their stage in the sales funnel. For instance, early-stage users may respond better to “Learn More,” while those closer to purchasing may be more inclined to click “Buy Now” or “Request a Demo.”

Utilize geographic segmentation 

Tailor ads based on location-specific preferences. A product that appeals to customers in warmer climates may not be relevant for those in colder regions, so adapt campaigns accordingly to maximize effectiveness.

Factor in timing and urgency 

If your business operates on a short sales cycle or promotes time-sensitive events, such as seasonal sales or limited-time offers, emphasize urgency to drive quicker decision-making.

Refresh your ad creatives regularly 

Use multiple variations of display ads to help keep your retargeting campaigns visually appealing and prevent ad fatigue for your target audience.

Driving conversions and customer loyalty

Considering the difference between remarketing and retargeting, we can conclude that both play crucial roles in boosting customer engagement and conversions. Remarketing helps businesses nurture relationships with past customers or subscribers through personalized communication while retargeting helps them capture new leads. Remarketing relies on personalized and direct marketing efforts, such as email campaigns, while retargeting involves maintaining brand visibility through online ads. By strategically implementing both, businesses can maintain long-term relationships and maximize their revenue.