Retargeting vs Remarketing: Differences & Implementation Tips

In digital marketing, there are several strategies that are commonly used by brands to increase conversion opportunities, two of which are retargeting and remarketing.

Although they sound similar, both have significant differences, starting from the target audience to the team skills required to execute the strategy.

This article will discuss the differences between retargeting and remarketing, as well as important tips for choosing the right strategy for your business. Make sure to read the explanation thoroughly to prevent any missteps!

What Is Retargeting?

Retargeting is a strategy of displaying ads to users who have visited your website or app but have not made a purchase or registration.

Generally, retargeting ads are displayed on channels that are not fully controlled by the brand, such as open web (for example, news sites, personal blogs, public forums) or in the form of display retargeting ads on networks such as Google Display Network or YouTube.

How Retargeting Works

Essentially, retargeting uses cookie or pixel tracking technology to monitor user activity on websites. When someone visits your website, the tracking system is activated in their browser.

If they then visit another website or platform connected to the same ad network, your brand’s ads will appear there.

So, even if the person does not return to your website, they can still see the ad and remember the product. This strategy is effective for increasing brand awareness and increasing conversion opportunities.

Retargeting Example

You sell various types of sports shoes, ranging from running shoes, basketball shoes, to cycling shoes. 

One day, a visitor opens your web store, asks about specifications, and even adds basketball shoes to their shopping cart. However, they do not proceed with the purchase.

With pixel tracking technology, all visitor activities, including questions and product preferences, are recorded in the browser and stored in the database. 

After the visitor leaves the website, the retargeting system will display ads for the same product on other websites or platforms within the ad network. 

As a result, potential buyers who postponed their transaction will be reminded of the product they were interested in, increasing the probability of the customer making a purchase.

Read also: 8 Differences Between E-Commerce and Marketplace for Businesses

What Is Remarketing?

Remarketing is a personalized marketing strategy that targets potential customers and existing customers who have previously interacted with the brand.

This strategy plays an important role in accelerating the process of converting potential customers into actual customers, as the customer journey does not usually happen instantly. 

This means that most potential customers do not instantly purchase a product after seeing it for the first time. Usually, they need time to read reviews or compare with other brands.

Remarketing also plays an important role in encouraging repurchasing from previous customers. Generally, previous customers are those who have already purchased but have not made another transaction within a certain period of time.

Remarketing can be carried out through various media that can be controlled by brands, such as email, websites, social media, or applications.

How Remarketing Works

Remarketing works by utilizing customer data that is already available, such as phone numbers or email addresses. 

With this information, you can contact customers directly to provide offers, discounts, or product recommendations that suit their preferences.

In addition to direct communication, you can also display remarketing ads on websites or apps that are frequently visited by customers. The goal is to keep your brand visible and memorable so that when they are ready to make a purchase, your brand will be their first choice.

Remarketing Example

Someone once purchased a body wash product from brand X. However, after the first purchase, they did not make a repeat purchase within 3 months. 

Therefore, brand X sends a remarketing email containing additional product recommendations or promotions for the same product. The copy of the email is more or less like this:

The Difference Between Retargeting and Remarketing

For a better understanding of the difference between retargeting and remarketing, here are the details categorized into several aspects:

1. Based on the Target Audience's POV 

Retargeting is aimed at users who have visited a brand's website or app, without being the brand's customer. 

Meanwhile, remarketing targets customers who have already provided their contact details or have been sufficiently engaged with the brand, for example, by making a first purchase or filling out a form to get a free e-book.

2. Based on the Media Used

Retargeting is generally carried out on third-party media or websites, such as news sites, blogs, public forums, or advertising platforms (Google Display Network or YouTube Ads). 

On the other hand, remarketing is often carried out through direct communication channels, such as email marketing and push notifications on applications.

Read also: How to Create an App on Android and Web for Beginners

3. Based on the Technology Used

Retargeting utilizes cookie or pixel tracking technology to track website visitor activity. With this technology, brands can display ads on other platforms that visitors visit afterward. 

Remarketing uses customer data or contact information to contact them directly or display ads on sites that customers frequently visit.

4. From the Team Skills Perspective

To implement a retargeting strategy, brands need to involve teams that are skilled in processing and analyzing user data using Machine Learning or Deep Learning. In addition, the team must also have the ability to manage ad placement across various platforms.

Meanwhile, to do remarketing, the team needs to master the effective application of Customer Relationship Management (CRM) so that they can build personal communication with customers and increase retention. 

They must also be proficient in using email marketing tools, such as Mailchimp or HubSpot.

Retargeting vs. Remarketing: Which Strategy Is Better for Your Business?

To make the right choice, you need to consider several things, such as the type of business, marketing objectives, and budget availability. Here is a brief guide for your reference:

• Consider the type of business: Retargeting is more suitable for e-commerce and retail businesses, while remarketing is suitable for subscription-based businesses or those with a loyal customer base.
• Understand your marketing goals: If you want to reach new customers, retargeting may be the right choice. However, if your goal is to maintain customer loyalty, try remarketing because this strategy is more personalized.
• Consider the budget availability: Retargeting generally requires lower costs because it utilizes existing customer data. This is in contrast to remarketing, which costs more because it uses paid advertising.

That concludes our discussion on retargeting vs. remarketing, as well as a guide to choosing the right strategy for your business. 

Make sure you consider the points mentioned above so that your strategy is well-targeted, your marketing budget is optimized, and your customer relationships are sustainable.

The good news is that you can make the process more effective and efficient by entrusting it to cmlabs. 

With its end-to-end All-in-One Digital Marketing service, cmlabs is ready to help your brand become more recognized in the digital realm so you can focus more on your core business. 

All-in-One Digital Marketing by cmlabs includes the following services:

• Search Engine Optimization (SEO): Technical website audit services, website projection development, and improving its authority on search engines.
• Search Engine Marketing (SEM): Services to help increase brand visibility on search engines using paid strategies.
• Creative Services: Provision of creative assets to support various visual needs for digital ads and social media.
• Website Development & Management: Website development services to help companies appear more professional in the digital realm.
• Media Placement: Services to help you gain positive exposure through reputable media.

For the advancement of your business, stop wasting time! If you want to know more about cmlabs services, contact our team now and get the best offer!

Read also: How to Apply a Full Funnel Marketing Strategy for Businesses