June 20, 2025 • 7 min read

What Is Retargeting (and Why It Converts Better Than Cold Ads)?

You’ve probably experienced retargeting firsthand. Ever visit a website to check out a pair of shoes or read about a service, only to see ads for that same product or brand follow you around Instagram, Facebook, or other websites? That’s not a coincidence. That’s retargeting in action.

And if you’re running a business or trying to grow your online presence, it’s one of the smartest ways to stay top of mind, re-engage warm leads, and boost your conversions without increasing your ad spend dramatically.

What Is Retargeting?

Retargeting (also called remarketing) is a type of online advertising that shows ads to people who have already visited your website or interacted with your brand. These ads are served after the user leaves your site, reminding them of what they viewed or encouraging them to come back and take action.

Rather than trying to reach people who’ve never heard of you (cold traffic), retargeting focuses on warm leads—people who have shown some level of interest already.

Retargeting can be done through:

  • Display ads on other websites
  • Social media ads (like Meta and Instagram)
    Search engine ads (Google Display Network)
  • Email or SMS (based on tracked behavior)

Why Retargeting Works

Let’s be real: most people don’t buy the first time they visit a site. In fact, studies show that:

  • Only about 2% of web visitors convert on their first visit
    That means 98% leave without buying, subscribing, or taking the next step.
  • Retargeting ads can increase conversion rates by 70%
    Compared to cold ads, retargeted ads have a significantly higher ROI.
  • Click-through rates for retargeted ads are 10x higher than display ads to cold audiences
    (Wordstream)

The logic is simple—people are more likely to act when they already know who you are. Retargeting keeps your business in front of them and gives them a second (or third) chance to come back when they’re ready.

Common Use Cases

Retargeting isn’t just for abandoned carts (though that’s a big one). Here are a few examples of how small businesses use it:

Ecommerce:

Someone adds an item to their cart but doesn’t complete the purchase. A few hours later, they see an ad:
“Still thinking it over? Complete your order today and get 10% off.”

Service Businesses:

A visitor lands on your homepage or services page but never books a consultation. The next day they see an ad:
“Still need help with your landscaping? Book a free estimate today.”

Content-Based Brands:

A user reads your blog post but doesn’t subscribe. You follow up with an ad that promotes your lead magnet or newsletter:
“Enjoyed our SEO tips? Get more delivered to your inbox each week.”

How Retargeting Works (Technically Speaking)

Most retargeting campaigns rely on a small piece of code called a pixel—often from Meta (Facebook/Instagram) or Google. Once someone visits your website, the pixel tags them anonymously so that your ads can be shown to them later.

The beauty of this is you don’t need their email address or contact info. Retargeting is behavior-based, not identity-based. And you control:

  • Who sees the ads (e.g., cart abandoners, blog readers, homepage viewers)
  • When they see them (within minutes, days, or weeks)
  • Where they see them (social media, websites, apps)

This level of targeting ensures you’re only spending money on people who’ve already expressed interest.

Retargeting vs. Cold Ads

Here’s a quick breakdown of how the two compare:

Cold Ads Retargeting Ads
Target people who’ve never heard of you Target people who visited your site
Low engagement, high cost per lead Higher engagement, lower cost per conversion
Often need multiple exposures to build trust Audience is already warmed up
Useful for awareness Ideal for conversion and follow-up

How Diib’s RetargetBoost Makes This Easy

If all of this sounds powerful but overwhelming, that’s where RetargetBoost by Diib comes in. We created it to help small business owners set up smart, high-performing retargeting campaigns—without needing to be ad experts.

With RetargetBoost, you’ll get:

  • A one-on-one onboarding call to walk you through your strategy
  • Help installing your Meta pixel (or checking it if it’s already set up)
  • A custom retargeting ad built for you and launched in your Meta account

You control the ad spend and audience, and we handle the setup and strategy. It’s perfect for ecommerce stores, local service providers, consultants, and anyone who wants more conversions from their existing traffic.

Don’t Let Warm Leads Go Cold

The people who visit your website already showed interest. Retargeting is your chance to follow up, stay visible, and gently nudge them toward taking action.

Instead of spending all your time and money chasing cold traffic, why not turn the traffic you already have into paying customers?

Ready to Start Retargeting the Smart Way?

Try RetargetBoost from Diib and get a done-for-you retargeting campaign that keeps your business in front of the people most likely to convert. No guesswork, no fluff—just smart marketing that works.

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Daniel Urmann
AUTHOR

Daniel Urmann

Daniel Urmann is the co-founder of Diib.com. Over the past 17 years Daniel has helped thousands of business grow online through SEO, social media, and paid advertising. Today, Diib helps over 150,000 business globally grow online with their SaaS offerings. Daniel’s interest include SMB analytics, big data, predictive analytics, enterprise and SMB search engine optimization (SEO), CRO optimization, social media advertising, A/B testing, programatic and geo-targeting, PPC, and e-commerce. He holds a Master of Business Administration (MBA) focused in Finance and E-commerce from Cornell University – S.C. Johnson Graduate School of Management.

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