What does "retargeting" mean in online advertising?

Retargeting in online advertising refers specifically to the practice of showing ads to users who have previously interacted with a brand or its website. This process utilizes cookies to track users as they browse the internet, allowing advertisers to display relevant ads to those individuals later. The idea is to re-engage potential customers who may have shown interest in a product or service but did not complete a purchase or take a desired action.

By reminding users of past interactions, retargeting aims to increase conversion rates and return visitors to the site, ultimately driving sales and enhancing brand awareness. This technique is particularly effective because it focuses on an audience that is already familiar with the brand, improving the chances of converting them into customers.