Ad retargeting, also known as remarketing, is a digital advertising strategy that enables marketers to show targeted ads to individuals who have previously interacted with their website, mobile app, or other online channels. It aims to re-engage users who have shown interest in a product or service but have not yet converted into customers.

The process of ad retargeting involves the following steps:

1. Tracking: When a user visits a website or performs specific actions, such as adding items to a shopping cart or subscribing to a newsletter, a tracking pixel or a cookie is placed on their browser. This allows the website to track the user’s behavior and actions.
2. Segmentation: Marketers segment users into different audience groups based on the tracked data. Segmentation can be done based on various criteria, such as pages visited, products viewed, duration of visit, or specific actions taken.
3. Ad Creation: Marketers create customized ads tailored to each audience segment. These ads can be designed to display products or content related to the user’s previous interactions or to promote special offers or incentives to encourage them to revisit the website and complete a desired action.
4. Ad Display: The retargeted ads are then displayed to the targeted audience across various online platforms and ad networks. This can include social media platforms, search engines, websites, and mobile apps that are part of the advertising network.
5. Conversion Tracking: Conversion tracking allows marketers to measure the effectiveness of their retargeting campaigns. By tracking conversions, such as purchases or form submissions, they can evaluate the ROI (return on investment) and make data-driven decisions to optimize their ad campaigns.

Ad retargeting leverages the principle of repeated exposure, aiming to keep the brand or product top-of-mind for potential customers who have already shown interest. It can help increase brand awareness and engagement and improve conversion rates by targeting individuals more likely to be interested in the advertised products or services.

However, marketers must carefully implement retargeting campaigns and respect user privacy preferences. Advertisers should provide clear information about their data collection and usage practices and offer opt-out options for users who do not wish to be retargeted with personalized ads.