What's the Difference Between Retargeting vs Remarketing

Have you ever browsed an online store, looked at a product, and then left, and then only saw ads for that exact item follow you across different websites and social media? Or maybe you have received an email reminding you about items left in your cart with a special discount?

That is retargeting and remarketing in action!

At first glance, these two digital marketing strategies seem similar. After all, both are designed to bring potential customers back to your business. However, they work in different ways and serve different purposes.

Retargeting focuses on using paid ads to re-engage visitors who have interacted with your website but haven’t converted yet, while remarketing is more about reconnecting with previous customers through email marketing to encourage repeat business.

Understanding the difference between these strategies can help businesses maximise their conversions and make the most of their marketing budget.

In this article, we will explore retargeting vs. remarketing and their key differences and help you decide which strategy (or both!) is best for your business.

Retargeting vs. Remarketing: Meaning

In digital marketing and online advertising, retargeting and remarketing are two strategies often confused with one another. While both aim to re-engage potential customers who have interacted with a brand before, they differ in their approach.

What is Retargeting?

Retargeting is a digital marketing strategy that focuses on showing ads to users who have previously interacted with a website or brand but didn’t take any action, such as purchasing their products or services.

It works through targeting technologies like cookies and pixels to offer personalised ads across platforms like social media, search engines, and websites, which helps remind potential customers to return and convert.

What is Remarketing?

Remarketing is a marketing strategy that involves reconnecting with past customers or website visitors through targeted email campaigns.

It focuses on engaging users who have shown interest in a product or service, often by sending reminders, exclusive offers, or personalised recommendations via email to encourage them to complete a purchase or take another desired action.

While both retargeting and remarketing aim to re-engage potential customers, retargeting primarily uses paid advertisements, whereas remarketing relies on email marketing to stay in touch, build relationships, and retain existing customers.

The Blurry Line Between Remarketing & Retargeting

So, why do people confuse these two terms?

The reason is simple: These strategies focus on reconnecting with potential customers.

Also, many advertising platforms, like Google Ads and Facebook, use the term remarketing to describe what is technically retargeting (displaying ads to previous visitors). This overlap in terminology makes it challenging to differentiate between the two.

Many businesses now use both methods in a single campaign—showing ads (retargeting) and sending follow-up emails (remarketing).

While remarketing usually involves email marketing, many businesses now implement ad-based retargeting within their remarketing strategies.

For example, a company may send an email about an abandoned cart while simultaneously displaying a retargeting ad for the same product. This approach blurs the distinction between the two methods.

Retargeting vs. Remarketing: How They Work

The key difference between retargeting and remarketing is that they work differently. Here is how both strategies work.

1. How Retargeting Works

Regarting uses tracking pixels and cookies to track user behaviour and serve them relevant ads after they leave a website. Let’s learn how it works step by step.

• User Visits Your Website: A potential customer browses your website but doesn’t complete an action (e.g., purchasing or filling out a form).
  
• Tracking Pixel Activates: A small code (pixel) on your site collects user activity data.
  
• User Leaves Without Converting: The visitor moves on to other websites, social media, or search engines.
  
• Retargeting Ads Are Displayed: Using platforms like Google Display Network, Facebook Ads, or LinkedIn Ads, your brand shows personalised ads to remind users about the product/service they are interested in.
• User Clicks and Returns: If the ad is compelling enough, the user may click on it and return to complete their purchase or take the action you want them to.

2. How Remarketing Works

Remarketing is email-based and focuses on re-engaging customers who have previously interacted with your brand. Here is how it works.

• User Provides Contact Information: A customer subscribes to a newsletter, creates an account, or completes a past purchase.
  
• User Leaves Without Taking Further Action: They abandon their cart, don’t renew a subscription, or haven’t interacted with the brand for a while.
  
• Personalised Email Campaigns are Sent: The business sends emails with special offers, reminders, product recommendations, or loyalty rewards.
• User Clicks on the Email: If the email catches their attention, the user may revisit the website and complete the desired action.

While remarketing primarily happens via email, some brands combine it with retargeting ads to increase engagement.

Retargeting vs. Remarketing: When to Use them

Many are often confused between the two terms, so they usually don’t understand when these strategies should be used. But don’t worry! Below, we have provided the details on how to use them. Let’s first begin with retargeting, followed by remarketing.

When to Use Retargeting

1. Website Visitors Who Didn’t Convert

Many users visit a website, browse through products or services, and then leave without taking action.

Retargeting helps businesses reconnect with these customers by displaying ads across different platforms like Google, Facebook, and Instagram.

These ads remind users of what they are interested in and encourage them to return and complete their actions, whether it is making a purchase, signing up for a newsletter, or filling out a contact form.

2. Cart Abandonment

Cart abandonment is a common problem for e-commerce buisnesses. Many shoppers add products to their carts but leave without buying.

Retargeting helps recover these lost sales by showing ads with the same products left in the cart and improving their online presence. Some businesses offer discounts or free shipping to encourage users to complete their purchase.

3. Brand Awareness Campaigns

Sometimes, users visit a website just to explore without the intention of purchasing immediately.

Retargeting helps brands stay in the minds of these potential costumes by showing them ads regularly. This is especially useful for new businesses or brands launching new products. It helps reinforce brand recognition.

4. Upselling & Cross-Selling

Retargeting is great for increasing the value of each purchase. If a customer has already bought a product, retargeting ads can suggest complementary items (cross-selling) or higher-end versions (upselling).

For example, if someone buys a laptop, they might start seeing ads for accessories like laptop bags, external storage, or wireless headphones. This strategy helps businesses increase their average order value and boost overall revenue.

When to Use Remarketing

1. Re-engaging Past Customers

If someone has purchased from a business before but hasn’t engaged in a while, remarketing emails can bring them back with product updates, personalised recommendations, or loyalty rewards.

This is especially useful for businesses that rely on repeat purchases, such as fashion retailers, online grocery stores, or subscription-based services.

2. Sending Exclusive Offers & Discounts

Businesses can send special promotions to past customers, rewarding them for loyalty.

For example, an e-commerce store can send a "10% off your next purchase" email to previous buyers, or a hotel may send a "special discount for returning guests" offer.

These personalised offers create a sense of exclusivity, increasing the chances of conversion.

3. Recovering Lost Leads

If a user signed up but didn’t take further action, an email follow-up can bring them back. These emails often include testimonials, case studies, or limited-time deals to show the benefits of taking action now.

4. Subscription or Membership Reminders

Remarketing emails can be used to remind customers about renewal deadlines, membership benefits, or upcoming subscription expirations.

For example, a streaming service can send an email saying, "Your subscription is about to expire – renew now for uninterrupted access!" These reminders help retain customers and ensure continued revenue.

Retargeting vs. Remarketing: Benefits

Retargeting and remarketing help re-engage customers, but they both offer different benefits. So, you can choose them based on your business goals.

Benefits of Retargeting

The benefits of retargeting are as follows:-

🔘Increases Brand Awareness: Not every visitor converts on their first visit, and that is okay. Retargeting helps keep your brand in front of potential customers by showing ads on various platforms. Seeing your ad repeatedly builds familiarity, making it more likely they will choose your brand when they are ready to buy.

🔘Boosts Conversion Rates: Retargeting targets people who have already shown interest, increasing the chances of conversion. Seeing ads for products they browsed or left in their cart reminds them of what they liked, encouraging them to complete their purchase.

Also Read: How to Optimize Ad Campaigns with AI: Strategies for Higher Conversions

🔘Cost-Effective Marketing: Instead of spending money on broad ads, retargeting focuses on warm leads, like people who already interacted with your brand. This makes your marketing budget more effective and gives you a better return on investment (ROI).

🔘Highly Personalised Advertising: Retargeting allows businesses to show ads based on user behaviour. If someone checks out a specific product, they will see ads featuring it or similar ones. This level of personalisation makes ads more engaging.

Benefits of Remarketing

Here are some of the benefits of remarketing.

🔘Strengthens Customer Relationships: Remarketing helps businesses stay connected with existing customers. Sending personalised emails with updates, recommendations, or special offers makes customers feel valued, increasing loyalty.

🔘Encourages Repeat Purchases: A simple reminder can bring customers back for more. Remarketing emails with exclusive discounts or product suggestions encourage past buyers to make another purchase, which helps boost revenue.

🔘More Direct & Personalised Approach: Unlike retargeting ads, remarketing allows for direct communication through email. These emails feel more personal, offering customers customised recommendations, exclusive deals, or helpful content that keeps them engaged.

🔘No Need for Paid Ads: Remarketing is budget-friendly because it relies on email instead of paid advertising. Businesses can reach past customers without spending extra on ads, making it a cost-effective way to boost engagement and sales.

Retargeting vs. Remarketing: Key Differences

Retargeting and remarketing may have similar purposes but differ in how they engage potential customers. Let’s break down their differences based on various aspects.

1. Purpose and Goal

The main purpose of retargeting is to bring back customers who visited a website but didn’t convert. It focuses on re-engaging users through targeted ads.

On the other hand, remarketing aims to reconnect with past customers through personalised email campaigns, reminding them about offers, discounts, or items they left in their cart.

2. Strategy and Execution

Another key difference between retargeting and remarketing is the strategy and execution they implement. Retargeting mainly works by tracking website visitors using cookies or pixels and then displaying relevant ads across different websites and social media platforms.

Remarketing, however, relies on customer data (like email lists) to send targeted messages, newsletters, or exclusive deals to users who have previously interacted with the brand.

3. Customer Engagement

Retargeting is passive, meaning users see the ads while browsing other websites, social media, or search engines. It is an effective way of reminding them about a brand.

In contrast, remarketing is more direct because it involves sending emails or messages, requiring users to open and engage actively.

4. Targeting Methods

Retargeting focuses on anonymous visitors who browsed a website but didn’t take action. It categorises them based on their behaviour, such as product views or cart abandonment.

However, remarketing targets identified users who have already provided their contact information, such as past buyers or email subscribers.

5. Advertising Platforms Used

Retargeting is done through Google Ads, Facebook Ads, LinkedIn Ads, and other third-party ad networks. These platforms track user behaviour and show relevant ads accordingly.

On the other hand, remarketing is carried out through email marketing platforms like Mailchimp, HubSpot, or Klaviyo, where brands send personalised messages directly to customers.

6. Customer Journey Stage

Retargeting is effective at the top and middle stages of the sales funnel, where users have shown interest but haven’t taken action yet. It nudges them toward conversion.

Remarketing is more useful in the bottom stage of the funnel, encouraging past customers to make repeat purchases or renew subscriptions.

7. Ad Formats and Channels

Retargeting uses display, banner, and video ads on websites, apps, and social media. These ads are visually appealing and designed to capture attention.

Remarketing focuses on personalised email campaigns, SMS marketing, and push notifications, offering direct communication with past customers.

Retargeting vs. Remarketing: Similarities

Despite their differences, retargeting and remarketing share many common elements that make them great tools in digital marketing.

🔘Both Aim to Increase Conversions: The goal for both strategies is to bring back potential buyers who have already interacted with a brand. Businesses increase the chances of turning interest into sales by re-engaging them.

🔘They Keep the Brand Top-of-Mind: With so many options, it is easy to forget about a brand after visiting once. Retargeting and remarketing ensure consistent visibility, reminding users why they were interested in the first place.

🔘Personalisation Plays a Big Role: Both strategies rely on user behaviour data to deliver relevant messages. Retargeting uses browsing history to display customised ads, while remarketing personalises email content with recommendations or exclusive deals.

🔘They Work Well in Multi-Touch Marketing Campaigns: Retargeting and remarketing work best when combined with content marketing, SEO, and social media efforts. They ensure that leads don’t go cold and that previous customers keep coming back.

Using these strategies together can increase customer lifetime value (CLV) and improve marketing ROI.

Retargeting vs. Remarketing: Different Types of Teams

Not only are these two strategies different, but they also involve different types of teams. Below, you will get a more clear idea of the team involved for retargeting and remarketing.

Retargeting Team

The type of team involved for retargeting are as follows:

🔘Digital Marketing/Advertising Teams: These teams are responsible for running ad campaigns that use retargeting. They manage ad budgets, develop creative, and measure the performance of retargeting efforts across various platforms like Google Ads, Facebook Ads, etc.

🔘Data/Analytics Teams: These teams analyse the behaviour of users who are being retargeted. They track engagement, conversion rates, and other KPIs to optimise retargeting efforts.

🔘Creative Teams: They create compelling ad content that is personalised for people who have already interacted with the brand, focusing on encouraging them to complete the desired action.

Remarketing Team

Remarketing teams differ from retargeting. Here is the remarketing team involved.

🔘Email Marketing Teams: This team is key in remarketing. They design and send personalised emails to users who’ve previously engaged with the company but didn’t convert. These emails may offer special deals, reminders, or personalised content to encourage action.

🔘CRM (Customer Relationship Management) Teams: They manage and segment customer data to send the right messages to the right people.

Remarketing often requires a strong CRM system to store and track user interactions over time.

🔘Product or Sales Teams: These teams may use remarketing to re-engage customers who have shown interest in specific products or services but haven’t purchased yet. The communication could be based on previous shopping behaviour or inquiries.

Retargeting vs. Remarketing: Best Practices

Businesses need to follow some best practices while using these strategies to get the best results. Let’s learn in detail about these strategies.

Best Practices for Retargeting

🔘Segment Your Audience for Better Targeting: Not all visitors are the same. Some may have just browsed, while others may have added products to their cart. You need to create different retargeting ads for each group to ensure your message reaches the right potential customer.

🔘Use Dynamic Ads for Personalisation: Dynamic ads show products a user previously viewed, making them more engaging. For example, if someone checked out a pair of shoes but didn’t buy them, the ad will display that exact product, increasing the chances of conversion.

🔘Set Frequency Caps to Avoid Ad Fatigue: Users can often feel annoyed when they see the same ad too often, leading to them ignoring it or blocking the ads entirely. That is why setting a frequency cap ensures they see your ads just enough to stay interested but don’t feel annoyed.

🔘Optimise Ads for Mobile Users: Many users browse on mobile devices, so your ads must be mobile-friendly. Ensure they load fast, fit different screen sizes, and have clear CTAs that lead to an easy-to-navigate landing page.

🔘Regularly Test and Optimise Ads: A/B testing different ad creatives, messaging, and CTA buttons helps determine what works best. Analyse the results and continuously improve your ads to boost performance.

Best Practices for Remarketing

Personalise Your Email Based on User Behaviour: To grab attention, you should send personalised emails with product recommendations, special offers, or reminders based on past interactions. This increases the chances of engagement.

🔘Create a Strong Call-to-Action (CTA): Whether you are offering a discount, asking customers to complete a purchase, or reminding them of an upcoming renewal, your CTA should be clear and compelling.

🔘Time Your Emails Strategically: Sending emails at the right moment makes a big difference, such as a few days after cart abandonment or before a subscription renewal.

🔘Offer Exclusive Discounts or Loyalty Rewards: You can provide discounts or early access to loyal customers to increase engagement and conversions.

🔘Keep Emails Concise and Visually Appealing: People don’t have time to read long emails. Keep your message clear and to the point. Use eye-catching subject lines, high-quality images, and a simple layout that makes it easy to catch your customer's attention.

Which One is Better for Your Business?

The choice between retargeting and remarketing depends on your business goals, audience, and the type of engagement you want to achieve. Both marketing strategies can be highly effective, but they serve different purposes.

Retargeting is great for bringing back visitors who showed interest in your website and products or services but left without taking action. You can remind them about your products and encourage them to return by displaying ads on platforms like Google, Facebook, and YouTube.

On the other hand, remarketing focuses on re-engaging past customers through emails, offering special discounts, abandoned cart reminders, or personalised recommendations to increase repeat sales.

If you want to recover lost leads, retargeting is the right choice, while remarketing is ideal for keeping customers engaged.

For the best results, combining both strategies ensures you stay connected with your audience at different stages of their buying journey, ultimately boosting conversions and customer retention.

Grow Your Business with Smart Remarketing and Retargeting

At Arramton, our team of experienced digital marketing experts knows how to create effective digital marketing strategies that drive results.

We have helped many businesses grow by increasing engagement, boosting conversions, and maximising their online presence. So, don’t let potential customers slip away!

With Arramton's expert strategies, you can re-engage lost visitors and build lasting customer relationships.

Whether it is through personalised email campaigns or targeted ads, we help you stay connected with your audience at every stage.

Partner with Arramton today and turn missed opportunities into loyal customers!

Conclusion

In essence, retargeting and remarketing are often used interchangeably, but they serve different purposes in digital marketing. While both strategies aim to re-engage users, their tactics, channels, and methods of communication differ.

Retargeting focuses on displaying ads to people who have previously interacted with your website, keeping your brand in front of potential customers as they browse online.

Remarketing uses email campaigns to reconnect with past customers and encourage repeat business. Both strategies are excellent tools for increasing conversions, improving customer retention, and maximising marketing efforts.

Using them together can help you reconnect with potential customers, nurture existing ones, and grow your business more effectively.

By understanding how each one works and personalising them to your business needs, you can create more effective and efficient marketing campaigns that drive better results.

Frequently Asked Questions

Q1 What is the main purpose of retargeting?

Ans The main purpose of retargeting is to bring back potential customers who have interacted with your website but haven’t completed a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form. By using tracking pixels or cookies, businesses can display targeted ads to these users as they browse other websites, use social media, or watch videos on platforms like YouTube. This keeps the brand top-of-mind and encourages users to return and complete their actions.

Q2 Can retargeting and remarketing be used together?

Ans Yes! Retargeting captures visitors who didn’t convert, while remarketing engages existing customers. Both strategies can work together to increase conversions and maintain customer engagement.

Q3 How much does retargeting cost?

Ans The cost of retargeting in the UK usually ranges from £0.30 to £2.50 per click, depending on factors like the platform, competition, and audience size. Also, optimising campaigns can help control costs and improve results.

Q4 Is email remarketing more effective than retargeting ads?

Ans It depends. Email remarketing is effective for existing leads and customers, offering personalised messages. Retargeting ads are useful for reaching visitors who haven’t provided contact info. Using both strategies together is ideal.

Q5 What industries benefit the most from these strategies?

Ans E-commerce, travel, SaaS, automotive, and education industries benefit greatly from retargeting and remarketing. These strategies help increase conversions and boost customer retention in various sectors.