How to Use Retargeting to Increase Conversions and Reduce Cost Per Lead

Retargeting is a powerful tool that allows you to bring back potential customers and increase conversions. Unlike traditional advertising methods, retargeting works with the «warm» audience, users who have already shown interest in your product or service. When set up correctly, retargeting can significantly reduce the cost per lead (CPL) and improve the return on investment (ROI) of advertising campaigns.

What is Retargeting and How Does It Work?

Retargeting is a technology that allows you to show ads to users who have already visited your website or interacted with your ads. The essence is to remind these users about your offer, nudging them towards a purchase or another targeted action.

Retargeting works based on data collected through:

— Cookies: Files that track user actions on the website.

— Tracking Pixels: Small codes that are integrated into the site and gather information about visitor behavior.

— Customer Databases: Lists of email addresses or phone numbers uploaded to advertising platforms.

Why is Retargeting Important for Increasing Conversions?

Potential customers rarely make a purchase during their first interaction with a brand. Statistics show that around 97% of users leave a website without taking a targeted action. Retargeting helps remind users of your brand, address objections, and bring back those who have already shown interest.

Key Benefits of Retargeting:

— Increased conversions by working with an interested audience.

— Reduced CPL, as warm leads convert faster.

— Enhanced brand recognition through regular reminders.

How to Set Up Retargeting: Step-by-Step Guide

1. Define Goals and Audience Segments

   To effectively implement retargeting, it’s important to segment users into groups based on their behavior. For example:

   — Visitors who viewed a product but did not add it to their cart.

   — Users who added a product to their cart but did not complete the purchase.

   — Those who have already made a purchase but may be interested in related products.

2. Install Tracking Pixels

   To facilitate retargeting, you need to integrate pixels from platforms like Facebook Ads or Google Ads. This will enable you to gather data on user behavior and create audiences for retargeting.

3. Create Attractive Ads

   Retargeting ads should be personalized and consider the audience’s interests. For example:

   — Show the product the user viewed previously.

   — Use time-limited offers (discounts, promotions).

   — Add social proof (reviews, ratings).

4. Set Frequency of Impressions

   Avoid showing ads too frequently to prevent annoying users. The optimal frequency is 2-3 impressions per week.

5. Test and Optimize Campaigns

   Use A/B testing to evaluate different creatives, calls-to-action (CTAs), and audience segments.

Best Practices for Using Retargeting

— Dynamic Retargeting

  This approach allows you to show users the exact products or services they previously viewed. Dynamic retargeting is particularly effective for e-commerce, where product choices can depend on various factors.

— Engagement-Based Retargeting

  Set up ads for users who interacted with your content: watched videos, read articles, or participated in surveys.

— Personalized Offers

  Consider user behavior and interests to offer the most relevant products or services. For example, if a user viewed a laptop, offer them a discount on that model.

— Cross-Selling

  For customers who have already made a purchase, suggest complementary products or services.

— Combine Retargeting with Sales Funnels

  Integrate retargeting into a multi-channel funnel strategy, where users interact with you through various channels (social media, email, website).

How to Reduce CPL with Retargeting?

• Focus on High-Conversion Audience

Concentrate on segments that are most likely to make a purchase, such as users who added a product to their cart.

• Budget Optimization

Reallocate the budget from general advertising to retargeting, as conversion rates are typically higher in this area.

• Use of Special Offers

Create unique offers for the retargeting audience: discounts, free shipping, bonuses.

• Scaling Successful Campaigns

If certain ads and strategies show good results, increase their budget.

Examples of Successful Retargeting

• Example 1: Promo Campaigns for Nutra Offers

Situation: A webmaster promotes a weight loss offer through Facebook Ads. Users visit the landing page, but only a small percentage fill out the order form.

Solution:

Retargeting was set up for users who viewed the landing page but did not complete the order. The ads included real customer testimonials, before-and-after results, and mentions of limited product stock.

Result:

Conversion increased by 40%. CPL decreased by 25% as returning users were more motivated to purchase.

• Example 2: Working with Financial Offers (Credit Offers)

Situation: A partner program for microloans. Users visit the landing page but do not always submit an application immediately.  

Solution:  

A campaign was created in Google Ads with dynamic retargeting for those who filled out part of the form but did not complete the process.  

Banners were used to remind users of the ease of obtaining a loan, featuring a personalized message: «Your loan is almost approved!»  

Result:  

The share of completed applications increased by 30%.  

Returning users helped reduce the costs of acquiring new leads.

• Example 3: Retargeting for Product Offers (Gadgets and Electronics)

Situation: An advertising campaign aimed at promoting smartwatches on a CPA model. Potential buyers express interest but do not complete the purchase.  

Solution:  

Retargeting was set up on social networks for users who added the product to their cart.  

The creatives included a promotion «Buy now and get 20% off!»  

Video ads demonstrating the benefits of the watches were also used.  

Result:  

The campaign’s ROI doubled.  

Cost per lead decreased by 15% due to the return of «abandoned» users.

• Example 4: Health Applications (Subscription Offers)

Situation: Promotion of a health monitoring app with a subscription payment model. Many users downloaded the app but did not activate the premium version.  

Solution:  

Retargeting was created based on users who installed the app.  

Creatives included:  

— Reminders about the features of the premium account.  

— A one-week free trial subscription.  

— Push notifications for re-engagement.  

Result:  

Subscription conversion increased by 45%.  

Cost of activation decreased by 30%.

• Example 5: Retargeting in Mobile CPA Offers

Situation: A mobile offer for downloading a game with payment for installation. The main traffic came from TikTok Ads, where there was high competition and rising CPL.  

Solution:  

Retargeting was set up for those who watched the promotional video but did not click the link.  

Re-runs of video ads were launched, focusing on the unique advantages of the game and promo codes for bonuses.  

Result:  

Conversion rate increased by 20%.  

Installation costs decreased by 18%, allowing the campaign to remain profitable.

• Example 6: Educational Offers (Courses and Webinars)

Situation: Promotion of a CPA offer for online courses. Many users register on the landing page but do not pay for the training.  

Solution:  

A retargeting campaign was launched for registered users, reminding them of the closing of enrollment.  

Email newsletters with trigger messages were used: «Only 2 spots left!» or «Your access is waiting for activation.»  

Result:  

Revenue from the campaign increased by 35%.  

CPL decreased by 20% due to user returns.

Conclusion

Retargeting is one of the most effective ways to bring users back and increase conversions. Proper segmentation, quality creatives, and regular optimization are key elements of success. Experiment with formats and audiences to find the