So many people struggle with the definition of retargeting and remarketing because they’re actually very similar. Both approaches are online marketing strategies designed to engage users who have interacted with your website or product in the past. Where they differ is how they deliver your message to those users.
Remarketing is all about connecting with users who are already in your channels. It applies whether you’re trying to re-engage your customers via emails, social media blasts, or other promotional efforts. It’s all about engaging customers in channels that you own.
In contrast, retargeting refers explicitly to online ad placements on the open web and display ads. The primary goal is to engage customers. This can either be customers who have already converted in the past and given you contact details or customers who have previously interacted with your brand but haven’t yet converted. Retargeting is more about meeting users where they live on channels you don’t control via the open web.
With the initial definitions out of the way, let’s take a look at some specific differences and similarities.
#1 They use different channels of communication
The first big difference is in the channels of communication. Retargeting typically uses online ad placements on third-party sites. Whereas remarketing typically uses direct communication channels like emails or push notifications.
As a good rule of thumb, remarketing helps you re-engage users who have previously converted via a sign-up, app download, or purchase. Retargeting is a way to reach any user, even those who have engaged with your site but have yet to give you any information that you can use to contact them directly.
#2 They use different kinds of data
While retargeting and remarketing use data for personalisation, they use different data types. Remarketing tends to rely on explicit data, like email addresses or usernames, collected from a company’s marketing efforts or provided directly by customers, for example, when they create an account after making an order. Retargeting instead relies on data gathered via tags on the client’s website and the identification of the user via stored cookies in the Open Web or other anonymised sources, which are then used to display adverts to users, or user groups, as they browse the web. In the future, brands will need to rely more heavily on cookieless solutions as Google retires third-party cookies.
#3 They have similar levels of personalisation
Both remarketing and retargeting campaigns can be personalised, and they can even take advantage of the same data types. For example, you might choose to send an email campaign out to registered users with a new product offer based on their previous purchases (interests) while using that same data to create personalised adverts that will be used to connect with existing customers as they browse the web.
People might wrongly assume that this makes remarketing more personalised, but in reality, some providers of retargeting, including RTB House, make use of Deep Learning-powered solutions to understand consumer preferences and allow for deeper levels of personalisation than many remarketing campaigns.
The main difference is that retargeting can also be used to connect with users who you don’t have very much data on. For example, connecting with visitors who didn’t leave any contact details is possible using personalised ads spread across the Open Web, building connections as they browse.
#4 Retargeting vs. remarketing: different types of teams
There are a lot of crossovers of skill sets between remarketing and retargeting. For example, both campaigns will benefit from talented analysts and creative specialists for banners. However, there are certain specific expertises that you will need for either type of campaign.
For example, remarketing teams often need a solid customer relationship management team, and teams skilled in email marketing tools. Retargeting teams often deal with large complicated datasets that must be turned into useful insights. So machine learning or Deep Learning experts will be essential to develop the tools needed to accomplish a successful campaign. Furthermore, as retargeting providers operate on the Open Web, they need a solid inventory team to arrange ad-space access through SSPs integrations. This is why many companies turn to retargeting providers, such as RTB House, to boost their campaigns.
Interestingly, while engaging more than one remarketing provider is not necessarily helpful, there are clear benefits to engaging multiple retargeting providers, even if you have your own in-house team. This is because you can take advantage of technological differences that facilitate better reach and competitive pressure between providers. When done correctly, this approach can double your campaign’s effectiveness.