What is the function of retargeting in digital marketing?

Retargeting serves the purpose of engaging users who have previously interacted with a brand, making it a powerful tool in digital marketing. When a user visits a website or shows interest in specific products but does not make a purchase, retargeting allows marketers to reach out to that individual later with tailored ads. This reinforces the brand message and encourages potential customers to return and complete a transaction.

By focusing on users who already have some familiarity with the brand, retargeting capitalizes on existing interest and enhances the chances of conversion, as these users are more likely to resonate with the ads they see due to their prior engagement. This strategic approach not only helps in converting interest into action but also increases brand recall and recognition, making it an effective tactic in a marketer's arsenal.

Retargeting is distinct from identifying new customers, which requires a different marketing strategy focused on outreach to new audiences. Additionally, it doesn't inherently minimize overall advertising spend; instead, it can sometimes increase spend due to more targeted ads. Similarly, it is not intended to limit audience exposure but rather to strategically re-engage those who have shown prior interest.