How can retargeting improve advertising ROI?

Retargeting enhances advertising ROI by reminding users who have previously interacted with the brand to complete a desired action, such as making a purchase or signing up for a newsletter. This approach capitalizes on the existing interest or engagement that these users have shown, making it more likely that they will convert. Since these audiences are already familiar with the brand, the chances of conversion improve, leading to a higher return on investment for the advertising spend.

Engaging users who have already had some interaction with a brand is generally more efficient than targeting entirely new audiences, as those previous interactions indicate a level of interest that can be nurtured into a completed action. This method focuses marketing efforts on users who are further down the funnel, thus maximizing the effectiveness of the advertising strategy.