How to Use Retargeting in Social Ads to Win More Conversions

Remember that time you scrolled through a site, added something to your cart, then closed the tab? A few days later, boom 💥 – that same item is following you around on Instagram, Facebook, even while you’re reading the news.

And your first thought was probably, “wait…is my phone spying on me?”

Good news: It’s not (at least, not in the way you think).
What you’ve just experienced is ✨ retargeting ✨, a clever way brands remind you about things you already showed interest in.

Done well, retargeting ads can do wonders.
In fact, people are 70% more likely to convert after seeing a retargeting ad according to these retargeting statistics.

Take Sarah, for example. Before bed, she’s scrolling (aka shopping), throws something in her cart, then pauses “do i really need this?” , closes her eyes to think harder, falls asleep, and forgets the cart. And honestly, we’ve all been Sarah at some point (don’t lie). 

Introduction to Retargeting in Social Ads

Sarah didn’t leave that cart behind because she didn’t like the product. She liked it enough to add it to her cart, but then second-guessed herself, got distracted, or simply..fell asleep.

That pause is exactly where retargeting ads come in. Instead of chasing brand-new people who’ve never heard of you, retargeting lets you reconnect with the ones who already showed interest. Maybe they checked out your website, clicked on an ad, or watched one of your videos. Whatever the action, retargeting keeps your brand top of mind so they don’t forget about you.

Since these people already know who you are, they’re much warmer than a cold audience. They’ve seen your brand, they’ve engaged with it, and they’re already partway down the path. That’s why social media retargeting tends to outperform broad awareness campaigns 🚀. 

Why Retargeting Matters for Conversions

Here’s the trust: only 2% of website visitors convert during their first visit. That means 98% leave without buying anything. 

Sarah is part of the 98%. She added that product to her cart, then left it behind. Not because she didn’t want it, but because she hesitated. Maybe she needed more time, maybe she wanted to compare, or maybe she just got distracted.

This is where your retargeting strategy makes the difference. By using retargeting ads to show Sarah the product again, you’re reaching her when she’s closer to making up her mind. And because she already knows your brand, she’s far more likely to convert than someone seeing your social ads for the very first time.

Sarah may have walked away the first time *cue dramatic music 🎶*
But retargeting ads make sure she doesn’t forget what she wanted in the first place.  

Benefits of Retargeting for Australian Businesses

For Aussie businesses, every marketing dollar counts 💰
The beauty of retargeting ads is that they focus on people who are already interested, like Sarah, instead of chasing cold audiences who’ve never heard of you.

Take Sarah’s abandoned cart. Without retargeting, she might never come back. But with a smart retargeting strategy, you can show her that product again at the right moment and increase the chance she’ll finish the purchase. Now imagine dozens, hundreds, or even thousands of “Sarahs” interacting with your brand each week. Retargeting makes sure you don’t lose them after the first visit.

Here’s why that matters for Australian businesses: 

1. Small budgets go further 💳
You’re not wasting ad spend on people who don’t know you. Retargeting puts your budget toward warm audiences, which usually means a lower cost per conversion.
2. Perfect for seasonal offers 🏷️
EOFY sales, Christmas rush, or even public holiday promos, retargeting keeps you front of mind during busy shopping periods. When Sarah’s ready to spend, your ad is there waiting.
3. Great for high-consideration purchases 🛒
Not every decision is instant, especially for bigger buys like spas, furniture, or education. Retargeting gives people the breathing room to think it over while still keeping your brand on their radar.
4. More insight into what works 📊
Watching how “Sarahs” respond to different messages or creatives helps you understand what truly drives conversions. Those insights can then strengthen your broader social ads strategy.

Platforms to Run Retargeting Ads

Once you’re ready to build your retargeting strategy, the next question is where to run your ads. Different platforms work better for different audiences, so it’s all about knowing where your “Sarahs” are hanging out online.

Facebook & Instagram Retargeting

This is where most businesses start, and for good reason. With Facebook and Instagram, you can retarget people who:
– Visited your website
– Added to cart but didn’t check out
– Watched your videos
– Engaged with your posts or ads

It’s perfect for both product-based and service-based businesses because you can serve highly visual, scroll-stopping ads that keep your brand top of mind. And with features like custom audiences and lookalikes, you can get super specific with who sees what. For many businesses, Facebook and Instagram are the easiest entry point into social media retargeting. 

LinkedIn Retargeting

If your business is B2B or targeting professionals, LinkedIn retargeting is gold. You can reach people who:
– Visited certain pages of your site (like your pricing or services page)
– Watched your video content
– Opened a lead gen form but never submitted it

This is ideal for industries like education, professional services, SaaS, or anything where the buying process takes more time and trust. 

Google Display Network

Google’s Display Network is how you follow people around the wider internet. It lets you retarget visitors with banner or responsive ads while they’re browsing other websites, checking the news, or even watching YouTube.

If Sarah leaves your site without buying, your ad can pop up again while she’s scrolling through her favourite blogs or catching up on sports scores. That repetition helps cement your brand in her mind until she’s ready to return. 

How to Build an Effective Retargeting Strategy

Now that we know what retargeting is and why it matters, the next step is learning how to use retargeting.

But how do you make it work without annoying people with the same ad ten times in a row? Here’s where to start.

Define and Segment Your Audience

Not all Sarahs are the same.
Some just peeked at your homepage, some threw something in their cart, and others got all the way to checkout before bailing. Treating them all the same won’t work.

Break your audience into groups so you can talk to them differently. Sarah who abandoned her cart might just need a quick reminder about free shipping. Sarah who only browsed and viewed products might need a “still thinking about this?” poke. And if Sarah’s already an existing customer, she’s more likely to care about what’s new in stock rather than seeing the same ad again.

Align Retargeting with Brand Identity

Sarah should know it’s you.
If your brand is playful, keep that same playfulness in your retargeting ads. If your brand is sleek and minimal, don’t suddenly switch to something loud and chaotic.

With retargeting ads, your tone, look, and feel should align with your brand, so Sarah never has to guess who’s talking to her. 

Craft Compelling Ad Creatives

Bland ads bore Sarah.
If your retargeting ads look like every other ad in her feed, best believe the only click you’ll get is the one she makes to scroll right past.

Make your ad worth her attention. A headline with bite, a visual that pops, or even a cheeky line that makes her smirk. Keep it fresh, keep it you, and she might just tap instead of scroll.

Set Smart Budgets and Bidding Strategies

Not every Sarah is worth the same bid.
Put more of your budget behind the Sarah who’s one step away from buying, like the one who abandoned her cart. For the Sarah who only skimmed your homepage, keep bids lower so you’re not overspending on a casual browser.

You can’t just toss dollars at ads without a plan. Think about how much each type of Sarah is worth to your business and match your bids to that value. Use frequency caps so you’re not paying for the same ad to chase her all day, and test different bidding strategies to see what gets the best results. The smartest retargeting budgets don’t try to reach everyone equally, they focus on spending where the payoff is highest.

Measuring the Success of Retargeting Campaigns

A retargeting campaign is only as strong as the results it produces. Tracking the numbers shows whether your ads are pulling people back in or just wasting spend.

Key Metrics to Track (CTR, CPC, Conversions)

If Sarah’s clicking but never buying, you’ll see it in your conversions. If she’s ignoring your ads altogether, CTR will tell you. Click-through rate (CTR) shows how engaging your ads are. Cost-per-click (CPC) reveals how efficiently you’re buying attention. Conversions confirm if all that effort is turning into sales.

Tools to Measure ROI

Numbers don’t mean much without the right tools to interpret them. Platforms like Google Analytics and Meta Ads Manager show how your retargeting dollars are performing by tracking clicks, conversions, and revenue. For more detail, tools like HubSpot or SEMrush can connect ad performance to actual business outcomes, giving you a clear picture of what’s working and what isn’t.

Final Thoughts: Turning Audiences into Loyal Customers

At the end of the day, retargeting means reconnecting with people who already showed interest. With the right mix of smart targeting, fresh creative, and tracking the numbers, you can turn a maybe into a yes.

Because let’s be real: we’ve all been Sarah. Sometimes, all it takes is the right reminder to bring us back.