What is Retargeting and How Does it Work?

5 min to read
If you’ve ever visited a website, browsed a product, and then magically seen an ad for that same item while scrolling Instagram or watching YouTube, you’ve just experienced a retargeting campaign.

For small and medium-sized businesses (SMBs) in Los Angeles, retargeting is one of the smartest ways to make the most of your marketing budget. It helps you stay visible to the people who already showed interest in your brand—and gives you another chance to turn browsers into buyers.

This guide will walk you through everything you need to know about retargeting: what it is, how it works, the tools you need, and how to use it effectively to grow your business.

What Is Retargeting?

Retargeting is a type of online advertising that targets people who’ve previously interacted with your website, app, or content but didn’t take action—like making a purchase or signing up for your email list. It’s an effective way to reconnect with people who have already considered becoming customers.

For example, someone in Silver Lake might browse your local skincare brand’s website, add a moisturizer to their cart, then leave to scroll TikTok. Later that day, they see a Facebook ad reminding them of that same product—maybe with a 10% off code. That’s retargeting in action.

Retargeting vs. Remarketing: What’s the Difference?

While the terms retargeting and remarketing are often used interchangeably, there’s a subtle difference between the two:

• Retargeting typically refers to using paid ads (like on Google, Facebook, or Instagram) to re-engage users who have interacted with your website or content but didn’t convert.
• Remarketing traditionally refers to reaching out via email, such as sending follow-up messages to someone who abandoned their shopping cart or downloaded a free guide.

In modern marketing, the lines are blurry—many platforms and agencies use “remarketing” to describe both tactics. But in general, retargeting = ads, and remarketing = emails. Together, they create a powerful 1-2 punch for bringing customers back and boosting conversions.

How Retargeting Works

Retargeting is powered by tracking technology—usually a small piece of code (called a pixel or tag) added to your site. Once installed, it tracks who visits your pages and what they do there.

Here’s the basic flow:

1. A visitor comes to your site.
2. The pixel tracks their visit and adds them to a custom audience.
3. When that user visits other platforms (like Facebook, YouTube, or news websites), your ads appear just for them.
4. You remind them what they loved. They come back. They convert.

There are two main ways to build retargeting audiences:

1. Pixel-Based Retargeting

This method automatically tracks anyone who visits your website and allows you to retarget based on their behavior.

• Example: “People who viewed product pages but didn’t add anything to cart.”
• Pro: Automated and dynamic
• Con: Can’t track users who didn’t allow cookies or who browse in private mode

2. List-Based Retargeting

You upload a list of customer emails or phone numbers (from your CRM or newsletter signups), and the ad platform matches that data to user accounts.

• Example: Show loyalty offers to past buyers
• Pro: Super precise
• Con: Requires a solid email list

Types of Retargeting Campaigns

There’s more than one way to bring someone back. Let’s break down the most common retargeting approaches SMBs in L.A. are using right now:

Website Visitor Retargeting

Show ads to people who visited specific pages.

• Target: Homepage viewers, product page visitors, checkout abandoners
• Ideal for: eCommerce, service-based businesses, and local shops

Dynamic Product Retargeting

Serve ads that display exactly what a person looked at.

• Target: “People who viewed this leather backpack”
• Ideal for: Online retailers with product catalogs

Video and Engagement Retargeting

Reach people who watched your videos or interacted with your posts.

• Target: People who watched at least 50% of your Instagram reel
• Ideal for: Brands with active social content or educational videos

Lead Magnet / Funnel Retargeting

Retarget people who downloaded a free guide, booked a call, or joined your newsletter.

• Target: “People who downloaded the L.A. Homebuyer Checklist but didn’t schedule a consultation”
• Ideal for: Realtors, law firms, consultants, and B2B services

Where Can You Run Retargeting Ads?

Meta Retargeting Ads (Facebook & Instagram)

• Use the Meta Pixel to track user behavior and retarget based on it.
• Can also retarget based on post engagement, messages, or video views.
• Great for visual brands and local businesses that want to stay top-of-mind.

Bonus: Instagram Stories + product stickers = fast conversions.

Google Retargeting Ads (Search, Display, and YouTube)

• Use the Google Tag to retarget on Google’s Display Network, YouTube, Gmail, and even search results.
• Show ads to past visitors as they browse news sites or watch how-to videos.
• Best for intent-based products and services, especially with YouTube how-to content.

Other Platforms

• LinkedIn: Excellent for B2B brands targeting by job title or industry
• TikTok: Best for brands targeting younger audiences with engaging, fast content
• Pinterest: Great for wedding planners, designers, and home goods brands

Why Retargeting Works So Well for SMBs in Los Angeles

Los Angeles is competitive and noisy. Everyone’s vying for attention—whether you’re in fashion, fitness, or food. Retargeting gives you a cost-efficient way to cut through the noise by focusing on the people who already know you.

Here’s why it’s so effective:

• Warmer audiences convert better
• You maximize the traffic you’re already paying for
• It’s cheaper than cold traffic ads
• You can personalize your message to where someone is in the buying journey
• Helps you stay top-of-mind in a competitive market like L.A.

Retargeting Best Practices for Los Angeles Businesses

Segment your audiences

Treat a homepage visitor differently than someone who abandoned a cart. Tailor your message based on behavior.

Use frequency caps

Don’t overuse retargeting ads. Cap your ad views to avoid ad fatigue.

Rotate creative

Keep your visuals and copy fresh. This also helps cut down on ad fatigue.

Have a strong CTA

Offer a discount, highlight social proof, or create urgency (“Limited Time Only”).

Exclude recent buyers

Save money by excluding customers who just converted—unless you’re upselling or offering related items.

Common Retargeting Mistakes to Avoid

• Retargeting everyone who visited your site—refine your audience.
• Showing the same ad over and over—rotate creative regularly.
• Forgetting to include a CTA—encourage people what to do next.
• Not tracking results—always check performance and adjust.

Retargeting Campaigns for Your Business

If you’re running a business in L.A.—whether it’s an eCommerce store, a service company, or a local shop—retargeting should be part of your strategy. It’s one of the easiest ways to recover lost leads, increase ROI, and keep your brand in front of the people most likely to convert.

You don’t need a massive budget. You just need a smart setup, the right messaging, and good creative.

FAQs: Retargeting Campaigns

1. What is retargeting?

Retargeting is a form of digital advertising that allows you to show ads to people who have previously visited your website or interacted with your brand. It helps bring back potential customers who didn’t convert the first time.

2. How does retargeting work?

It uses a small piece of code (a pixel or tag) placed on your website to track visitors. When those users browse other sites or apps, your ads appear to remind them of your brand or products, encouraging them to come back and take action.

3. What’s the difference between retargeting and remarketing?

Retargeting typically refers to showing ads across platforms like Google or Meta, while remarketing often refers to re-engaging leads through email. Both aim to convert warm leads into paying customers.

4. What platforms support retargeting ads?

Popular platforms include Google Ads (Search, Display, YouTube), Meta Ads (Facebook and Instagram), LinkedIn, TikTok, Pinterest, and more. Each offers different targeting options depending on your audience and goals.

5. Is retargeting effective for small businesses?

Yes, retargeting is especially effective for SMBs because it focuses your budget on warm leads—people already interested in your business—making it more likely to convert and increasing ROI.

6. How long should I run a retargeting campaign?

That depends on your goals, budget, and sales cycle. Many businesses run ongoing retargeting campaigns, adjusting frequency and creative regularly to stay fresh and effective.

7. Can I control how often someone sees my retargeting ads?

Absolutely. Most ad platforms allow you to set frequency caps, so users don’t see your ad too many times. This helps you stay top-of-mind without becoming annoying.

Contact COLAB Digital Marketing for Your Next Retargeting Campaign

Retargeting is one of the most effective digital marketing tactics to remind the right people why they were interested in your product or service.

Need help setting up or optimizing your retargeting strategy? We help L.A.-based businesses run smarter ads that bring customers back—and get them to convert. Contact COLAB to talk about how to turn your site visitors into loyal buyers.