What audience type should a business use to retarget customers who previously purchased an item from their website?

The correct choice, Custom Audience, is essential for retargeting customers who have previously made a purchase from a business's website. A Custom Audience allows advertisers to reach users who have already interacted with their brand, making it highly effective for re-engagement. This type of audience targets individuals based on specific actions they've taken, such as visiting a website or completing a purchase, which is particularly useful for driving repeat sales or upselling complementary products.

Retargeting customers through Custom Audiences capitalizes on their prior interest and existing relationship with the brand, increasing the likelihood of conversion. This strategy is aligned with the behavioral data collected about these customers, allowing businesses to tailor advertisements and content specifically to their past actions.

The other audience types serve different purposes. Engaged audiences target users who have interacted with the brand on social media but may not necessarily have made a purchase. Lookalike audiences are used to find new potential customers by targeting users with similar profiles to an existing customer base, rather than focusing on previous buyers. Interest-based audiences rely on users' interests and behaviors rather than their past interactions with the brand, making them less effective for retargeting former customers.