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[2025 Complete Edition] What Is Retargeting? An Explanation of How It Works and How to Use It

"—a term you often hear when managing web ads—"Retargeting (Retarg)」。

I bet you're all using it to improve your ad performance, aren't you?

 

When set up correctly, retargeting ads can significantly improve your conversion (CV) rate.

 

However, there are quite a few people who seem to be using it just because they’ve set it up, without really thinking about it.

In this article,A Comprehensive Guide to Retargeting: From How It Works to Setup Tips and Operational ConsiderationsI’ll explain! I’ve structured this so that even beginners can understand it, so please be sure to read it all the way through.

 

 

What Is Retargeting?

Retargeting AdsThis refers to a mechanism that displays ads again to users who have previously visited the site.

For example, have you ever had the experience of visiting an online store and then seeing related ads appear repeatedly on other pages?

 

That isRetargeting AdsThat's it.

The purpose of this advertising strategy is to bring potential customers who have left the site back and drive conversions.

 

 

Retargeting”I think it's often translated as '...'."

 

Specifically,

I visited the site once, but...For users who did not reach the CV stageThe ad will be displayed again.

 

By the way, “” has almost the same meaning as “retargeting,”Remarketing”The phrase “” is also commonly used.

 

The difference between the two is whether they are used by Google or Yahoo.

Retargeting is “Yahoo!"Ads run on [platform]."

In contrast, remarketing is “Google" refers to ads run on [...].

 

Since these terms are used interchangeably, let’s use “retargeting” consistently throughout this document.

How Retargeting Works

Retargeting uses cookies.

"Cookies" form the foundation of retargeting.

Cookies store information such as the pages a user has visited and the date and time of those visits.

Also, do you ever find that your ID and password are automatically filled in when you log in?

 

Thanks to that, you can log in quickly without having to remember your ID and password, right? Actually, this is also,InformationThanks to the information stored in cookiesThat's right.

Based on this data, we serve relevant ads to visitors to our site.

 

However, in recent years, the expiration period for cookies has been shortened for privacy reasons.

In particular, since Apple’s “iOS” and “Safari” may limit the cookie retention period to one day, it is necessary to manage campaigns by leveraging the latest features of each advertising platform.

 

Basics of Retargeting Settings

To run retargeting ads effectively, the following settings are important.

1. Setting Up Retargeting Tags

On a specific page on the site, "Retargeting Tag" will be installed.

By storing this tag in a user's cookies, we can track that user.

 

2. Setting Up Retargeting Lists

Next, ”Retargeting List”You need to create [...].

 

A retargeting list is “A list of users who have visited websites targeted for retargeting"."

 

Next, create a retargeting list. This list defines the criteria for who sees your ads, and you can configure it as follows:

  • Users who visited a specific page
  • Exclude users who have already converted
  • Users who have been away for ○ days since their last visit

 

3. Creating a Retargeting List

For example, a list targeting “users who added Product A to their cart but did not complete the purchase”

It’s most effective to create them at specific intervals, such as every 1, 3, 7, or 30 days.

 

This allows us to deliver ads tailored to user behavior at the right time.

 

Reasons to Use Retargeting

There are two main reasons why retargeting ads are used.

1. Re-engage visitors with high bounce rates

It is said that about 90% of website visitors leave after their first visit. If you ignore this, you’ll miss out on many potential customers. By using retargeting ads, you can bring back users who missed the opportunity to make a purchase.

The internet is overflowing with information these days. With just a few clicks, you can jump to other information, right?

 

As a result, users who visit the siteI rarely make an immediate decision that “I need this”—in other words, I rarely buy it.

 

 

When I actually buy something online, after looking at the product once, “Not right now—let's do it another time."I thought to myself, '...'," or"I wonder what the other products are like?"Does it ever take you to other sites?

 

And when you get redirected to another page, you might forget about that product, not know how to get back to the product page, or find it too much of a hassle to return to the original product page after browsing too many other pages, right?

 

There are various reasons, but these are the kinds of reasons why potential customers end up walking away.

 

To make sure we don't lose these users who have leftThat is what retargeting ads are all about.

2. "Returning Users" with a High Conversion Rate

Users who have visited a site before tend to have higher conversion rates than first-time visitors. Since repeat visitors understand the purchase process, they face fewer barriers and are more likely to convert smoothly.

*CV (Conversion: An abbreviation for “Conversion,” which refers to the ultimate outcome on a website—such as a purchase, a request for information, or membership registration.)

 

Between someone visiting the site for the first time and learning about the products or services for the first time, and someone who has visited the site before and is already familiar with them, it seems more likely that the latter will result in a conversion, doesn't it?

 

In addition, new customers may need to complete the registration process and select a payment method.

 

However, since repeat customers can skip that step, there are fewer barriers to conversion in the purchase funnel.

 

In other words, “You can display ads to users who are highly likely to convert"This is the biggest advantage of retargeting ads."

Points to Keep in Mind About Retargeting Ads

When you first set up retargeting ads, you’ll create lists, design banners and ad copy, and then launch the campaign,

In fact, there are many situations where things just end up staying that way...

 

However, when I'm browsing a website or using an app, the same ad keeps popping up over and over again, and "This is such a hassle…」「You're really persistent..."Have you ever thought, '...'?"

 

Here are some points to keep in mind regarding retargeting ads.

 

The number of times an ad is displayed to a single user is calledFrequencyThat said, if this happens too often, users will find it annoying.

 

If, as a result, people end up not buying the product, it could be a waste of advertising money and could also damage the image of that product or service.

 

To prevent that from happening, let's take two measures.

1. Set a frequency cap

If ads are displayed too frequently, users may find them “annoying,” which can damage the brand’s image.

Use the "frequency cap" feature of your advertising platform to set appropriate limits on the number of impressions per day or per week.

 

Most advertising platforms allow you to set a limit on the number of times an ad is displayed to a single user.

 

How many times a day?」「Up to how many times a week?」「Up to how many times a month?"You can set this," so be sure to find the appropriate number of times to send each one and set it accordingly.

 

2. Carefully Review the Target Audience

It is also important not to serve ads to users with low purchase intent.

 

For example, compared to users who simply visited the landing page,

You'll see better results if you target users who have added items to their cart or who have proceeded to checkout.

 

For example, if you use page views on a landing page as the trigger for a retargeting tag, users who opened the site for whatever reason but ultimately have no interest in the product or service might think, “I’m not interested, but I keep seeing this ad all the time—it’s so annoying.” And even if users are aware of retargeting, wouldn’t they still think, “I just opened the site briefly, but now I’m getting bombarded with ads…”?

 

Therefore, rather than retargeting people who have opened the landing page, we should focus on the stage beyond the landing page in the purchase funnel—"Retarget people who added items to their cart"or"Retarget users who have opened the personal information entry form page for placing an order"It is effective to narrow down your user base by doing things like this.

 

By avoiding serving ads to people who aren't relevant or who don't seem very interested in making a purchase, you can more easily maximize the effectiveness of your retargeting campaigns.

Summary

Thank you for reading to the end.

 

Retargeting ads are a powerful way to reach users who have left a site and increase conversion rates.

However, proper configuration and management are essential.

  • List Segmentation
  • Using Frequency Caps
  • Targeting Based on User Behavior

By thoroughly implementing these measures, you can run effective advertising campaigns.

Use retargeting to maximize your ad performance!

Author

Sayo Yoneda

I work in the Web Consulting Division. I handle all aspects of web advertising, from creating landing pages to managing campaigns. I’m constantly learning.