If you already invest in paid traffic, you know that not every visitor to your site converts on the first visit. That's where retargeting comes in, a powerful strategy to bring these users back and increase your chances of conversion.
But how exactly do you set up retargeting the right way?
In addition to learning the step-by-step of how to set up retargeting, we'll also answer one of advertisers' most common questions: what are the most effective retargeting strategies? Keep reading to find out!
What is retargeting?
Retargeting is a strategy that lets you reach users who visited your site again but left without completing an action.
Through cookies and tracking pixels, these people can be segmented to receive personalized ads while browsing other sites, social media, and apps.
This is essential because most visitors don't convert on their first visit. In fact, more than 90% of users leave a site without taking any action.
Retargeting brings these people back, significantly increasing the chances of conversion.
How to set up retargeting step by step
Now that you understand the importance of this strategy, let's go through the practical step-by-step of how to properly set up retargeting.
1. Choose the desired platform
Before setting up retargeting, you need to decide where you want to display your ads. The most popular platforms are:
- Google Ads - Lets you display ads on the Display Network, YouTube, and search results.
- Facebook and Instagram Ads – Detailed targeting to show ads in feeds and Stories.
- TikTok Ads – Great for interactive campaigns and younger audiences.
- Retargeting Emails – Sending personalized reminders to users who abandoned their cart or browsed the site without converting.
2. Install the tracking pixel
For retargeting to work, you need to install a tracking pixel on your site. This code monitors visitor interactions and lets you segment them later.
How to install the pixel on each platform:
- Google Ads → Go to “Audience Manager” and generate a pixel. Insert the code into the site's header.
- Facebook Ads → In Events Manager, create a Facebook Pixel and add it to the site.
- TikTok Ads → In the platform's dashboard, create a pixel and insert the generated code into the site.
If you use a platform like Shopify or WordPress, many of them have plugins that make installing the pixel easier.
3. Create audience segments
After installing the pixel, it's time to define who will be targeted by your retargeting ads. Some options include:
- Visitors to specific pages → Advertise to people who visited a product page but didn't buy.
- Users who abandoned their cart → Reach people who added products to their cart but left without completing the purchase.
- Customers who already bought → Use retargeting for cross-sell and upsell.
- Users who watched a video → Show ads to people who watched part of your introduction video.
4. Create high-quality ads
For retargeting to be truly effective, your ads need to be relevant and visually appealing.
The first step to setting up retargeting correctly is using high-quality images and videos, since striking visual elements capture the user's attention and boost engagement. In addition, the message needs to be personalized. Showing products the user already viewed creates a sense of familiarity and reinforces their interest in the purchase.
Another effective strategy is offering exclusive benefits, like special discounts or free shipping, driving conversion more assertively.
Finally, a clear, direct CTA (Call to Action) makes all the difference. Calls like “Come back now and finish your purchase!” or “Grab this offer before it's gone!” create a sense of urgency and encourage immediate action.
5. Set a budget
In retargeting, it's essential to balance frequency and budget. And how do you set up retargeting without annoying users? Don't display ads at an excessive frequency. A good starting point is to test smaller budgets and adjust based on performance.
Keep an eye on:
- Ad frequency → Avoid showing the same ad to the same person too many times.
- Daily budget cap → Start with a small amount and increase as you see good returns.
- Bid adjustment → Track cost per click (CPC) and cost per acquisition (CPA) to optimize spending.
6. Track and optimize performance
The last step of how to set up retargeting is tracking the results and making adjustments to make sure your campaign is really performing well.
An essential metric to watch is CTR (Click Through Rate), which shows how many people are clicking on your ad.
If the CTR is low, it might be a sign that your creatives or calls to action aren't grabbing enough attention.
Conversion rate is also a great indicator, since it shows how many visitors who clicked the ad actually completed the desired action, whether that's a purchase, sign-up, or other interaction.
If a lot of people click but few convert, the problem might be with the landing page or the offer.
Another important point is cost per conversion (CPA), which reveals how much you're spending for each customer gained.
If this value is too high, it might be time to adjust your targeting or test new ad formats to optimize costs.
And of course, at the end of the day, what really matters is ROI (Return on Investment). It will tell you whether the campaign is worth it or needs improvements to become more profitable.
With this data in hand, the secret is to test, adjust, and optimize.
Small details, like changing a text, swapping an image, or refining the targeting, can make all the difference in the success of your retargeting campaign.
What are the best retargeting strategies?
Besides learning how to set up retargeting, it's very important to know the strategies that really make a difference in your campaign's performance.
And believe it, small tweaks can turn your ads into true conversion machines.
One powerful approach is dynamic retargeting, which shows exactly the products or services the user already viewed. This makes ads much more relevant and increases the chances they'll come back to finish the purchase.
Another interesting technique is sequential retargeting. Instead of always showing the same ad, create a strategic sequence.
First, remind the user about the product. Then, present a benefit or testimonial. And finally, bring in an irresistible incentive, like a discount or special offer.
Timing also makes all the difference. Offering progressive incentives can be a powerful trigger to speed up conversion.
If the user hasn't bought within three days, send them a reminder. After a week, try offering a discount coupon.
And to boost results even further, go for multichannel retargeting. Don't stick to a single format.
Combine ads on Google, social media, and push notifications to reach the user at multiple points in their journey. The more contact they have with your brand, the higher the chance of conversion.
Speaking of Google, check out our detailed article on how to create a retargeting campaign on Google.
Start the path to more conversions!
If you want to increase your conversions and make the most of your paid traffic, learning how to set up retargeting is a fundamental step.
This strategy helps recover visitors, reaching them at the right time with personalized messages.
The secret to success lies in properly segmenting your audience, creating engaging ads, and monitoring results to continuously optimize.
In addition, combining retargeting with push notifications from AI Web Push can further strengthen your approach, ensuring your brand is always present in the consumer's journey.
Now that you know how to set up retargeting the right way, start implementing this strategy and watch your conversions grow!