Muze AIDefinition
Retargeting is advertising to people who have already interacted with your business, such as site visitors, video viewers or people who abandoned a cart. It typically shows much stronger ROAS than prospecting, because the audience is already familiar with the brand.
What to know
Strong retargeting ROAS is partly an attribution illusion. Some of those people would have returned and purchased anyway, so the ads take credit for revenue they did not create. This is why incrementality testing matters more here than anywhere else.
Retargeting cannot scale on its own. The pool is only as large as what prospecting puts into it, so a business that cuts prospecting will watch retargeting performance decay a few weeks later.
Related terms
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