What is the purpose of retargeting in digital advertising?

Retargeting in digital advertising is specifically designed to re-engage users who have already shown interest in a brand's products or services by visiting its website. When a potential customer visits a site but does not complete a desired action—such as making a purchase or signing up for a newsletter—retargeting allows advertisers to display tailored ads to these users as they browse other sites or social media platforms. This strategy increases the likelihood of conversions by reminding them of their previous interest and encouraging them to return to finalize their actions.

In contrast, drawing in new audiences through social media focuses on attracting new customers rather than reconnecting with those who have expressed prior interest. Creating brand awareness through traditional means like billboards does not cater to users who have previously interacted with the brand and is more geared toward broad exposure. Generating content based on user demographics, while important in targeting, does not specifically focus on the act of re-engaging with previous visitors, thus missing the core intent of retargeting.