6 Proven Retargeting Strategies You Need to Know

Learn how AI, AR, and privacy-first tactics are transforming e-commerce retargeting in 2025.
Written by
Ahmed El Naggar
Published on
February 25, 2025

Have you ever wondered how your favorite online store seems to know exactly what you want?

You browse a pair of shoes, leave the site, and suddenly, those shoes are following you everywhere: on social media, in your email, even on other websites.

It’s like the brand can read your mind, right?

Well, they can’t read your mind (yet), but they’re using something almost as powerful: smarter retargeting strategies.

Now imagine trying on clothes virtually with augmented reality, getting AI-powered product recommendations before you even know you need them, or receiving a discount code exactly when you’re ready to buy.

Sounds futuristic? It’s already happening.

In this blog, we’re pulling back the curtain on the future of e-commerce marketing.

Whether you’re a brand looking to stay ahead of the curve or a shopper curious about how your data is being used (ethically, of course), you’re in for a treat.

Ready to see how retargeting is evolving? Let’s dive in.

What is Social Media Retargeting?

Social media retargeting is a powerful marketing strategy that allows you to deliver personalized ads on social platforms to users who have previously visited your website. 

This approach helps target audience that are potential customers by showing them relevant content or products they’ve already shown interest in.

Here’s how a dynamic social media retargeting campaign works:

  1. A user visits your website and browses specific pages.
  2. They leave your site without making a purchase.
  3. When they log into a platform like Instagram, they see targeted ads featuring the products or pages they viewed earlier.

This strategy boosts brand recall, increases conversions, and keeps your business top-of-mind for potential customers.

The Evolution of Retargeting

Remember the days when retargeting meant bombarding users with the same ad everywhere they went? 

Those days are numbered. 

By 2025, retargeting will be smarter, more subtle, and far more effective, thanks to three key shifts:

The Death of Third-Party Cookies 

With browsers like Chrome phasing out third-party cookies, brands are turning to first-party data (information collected directly from customers) and zero-party data (data customers willingly share). This shift is about building trust and delivering more relevant experiences.

AI This AI That

Artificial Intelligence (AI) and Machine Learning (ML) are making retargeting more predictive. Instead of just reacting to past behavior, AI can anticipate what customers want next. Think of it as a digital crystal ball for marketers.

Omnichannel Retargeting

In 2025, retargeting won’t be limited to one platform. Brands will seamlessly follow customers across devices: from mobile to desktop to smart speakers: creating a unified experience.

How Does Social Media Retargeting Work?

Social media retargeting uses a small piece of code called a "pixel" from platforms like Facebook, Instagram, Pinterest, or TikTok. You add this pixel to your website, and it tracks what visitors do on your site, like which pages they view or products they check out.

Later, when those same visitors use the social platform, they’ll see ads for the products or pages they looked at on your site. It’s a great way to remind them about your brand and bring them back.

Once you get the hang of this pixel-based retargeting, you can make your retargeting efforts even better by grouping your audience based on their behavior or interests. This way, you can show them ads that are super relevant, increasing the chances they’ll take action.

Top 6 Retargeting Strategies for 2025

Here’s where it gets exciting. These are the strategies that will define retargeting in 2025:

Hyper-Personalized Retargeting Campaigns

Gone are the days of generic ads. In 2025, retargeting will be all about hyper-personalization. 

For example, a customer abandons their cart after looking at a red dress. Instead of showing them the same dress, the brand uses AI to suggest matching accessories, offers a limited-time discount, and even includes a styling tip. That’s the power of hyper-personalization and effective marketing strategies.

Pro Tip: Use dynamic product ads that update in real-time based on user behavior. Platforms like Google Ads and Facebook already offer this, but by 2025, it’ll be the norm.

Privacy-First Retargeting

With stricter privacy regulations like GDPR and CCPA, brands can’t afford to cut corners with old marketing software.

In 2025, retargeting will rely heavily on first-party data, information customers willingly share, like email addresses or preferences. 

Marketing tools like Google’s Privacy Sandbox will help brands retarget without compromising privacy.

Pro Tip: Build trust by being transparent about how you use customer data. A simple “We value your privacy” message can go a long way.

Predictive Retargeting

Why wait for prospective customers to show interest when you can predict it? 

Predictive retargeting uses AI to analyze patterns and anticipate what customers might want next.

For example, if a customer buys running shoes every six months, the brand can retarget them with new arrivals just before they’re likely to shop again.

Pro Tip: Invest in AI-powered advertising platform like GoAudience or Criteo to stay ahead of the curve.

Cross-Device Retargeting

In 2025, customers won’t just shop on one device, they’ll switch between phones, laptops, and even smart speakers.

Cross-device retargeting ensures that your ads follow them seamlessly, creating a cohesive experience.

Pro Tip: Use platforms like Google Ads and Facebook Ads, which already offer cross-device retargeting capabilities.

Interactive Retargeting Ads

Static ads? Yawn. In 2025, retargeting will be interactive and immersive. 

Think augmented reality (AR) try-ons for fashion brands or gamified ads that let users “unlock” discounts by playing a quick game.

Pro Tip: Experiment with AR tools like Snapchat’s AR lenses or Facebook Spark AR to create engaging retargeting experiences.

Simplify Ad Messaging + A/B Test

If your ad messaging is confusing, it’s likely to be ignored. 

To grab attention, create ads with clear, eye-catching designs and strong calls-to-action (CTAs). Keep your message short and memorable so your audience understands it quickly and takes action.

Digital marketing isn’t a one-time task, it requires ongoing optimization and testing. This is where A/B testing comes in. A/B testing involves creating two versions of an ad (Test A and Test B) with one key difference, then comparing which performs better. 

A/B testing is a must for successful retargeting campaigns. To get started, run two ad variations simultaneously, identify the better-performing one, and pause the underperforming version. Then, create a new variation of the winning ad to keep improving. 

This process of continuous testing and refinement helps you understand what resonates with your audience and allows you to make smarter, data-driven decisions for your ad creatives.

Challenges and Solutions in 2025 Retargeting

Of course, the road to smarter retargeting isn’t without its bumps. 

Here are the challenges brands face, and how to overcome them:

Ad Fatigue

Bombarding retargeting list with ads can backfire. 

The solution? Focus on quality over quantity because customer experiences matter. Use AI to optimize ad frequency and ensure every interaction adds value.

Privacy Regulations

Stricter laws mean brands must be more careful with data. 

The solution? Your marketing plan should include investing in privacy-first tools and be transparent with customers.

Measuring ROI

With advanced strategies like predictive retargeting, measuring digital marketing ROI can be tricky. 

The solution? Use advanced Google analytics or other tools to track performance across channels.

Brands Leading the Way in 2025 Retargeting

Retargeting isn’t just a buzzword but a proven strategy that’s driving results for some of the biggest names in e-commerce. 

Let’s take a closer look at how these brands are leveraging smarter retargeting strategies to stay ahead of the curve.

1. Nike: Personalized Retargeting with AR and AI

Try on feature by Nike

Nike has always been a pioneer in blending technology with marketing, and their retargeting strategies are no exception.

Here’s how they’re setting the standard:

  • Augmented Reality (AR) Try-Ons: Nike uses AR to let customers “try on” sneakers virtually through their app. If a user abandons their cart, Nike retargets custom audiences with an ad showcasing the exact sneakers they were interested in, along with a personalized message like, “Still thinking about those Air Max? They’d look great on you!”
  • AI-Powered Personalization: Nike’s app uses AI to analyze user behavior, such as browsing history and workout data. This allows them to retarget users with hyper-personalized product recommendations. For example, if a user frequently buys running gear, Nike might retarget them with ads for the latest running shoes or accessories.
  • Results: According to Nike’s 2023 earnings report, their digital sales grew by 24%, driven largely by personalized retargeting campaigns. Their AR try-ons alone have increased conversion rates by 20%.

Takeaway: By combining AR and AI, Nike creates a seamless, personalized shopping experience that keeps loyal customers coming back.

2. Sephora: Predictive Retargeting with AI

Sephora's Virtual Artist Tool

Sephora is a master of using data to anticipate customer needs. 

Their predictive retargeting strategy is a game-changer:

  • AI-Driven Recommendations: Sephora’s app uses AI to analyze customer behavior, such as past purchases and product reviews. If a customer frequently buys skincare products, Sephora might retarget them with ads for a new moisturizer or serum for a personalized experience.
  • Virtual Artist Tool: Sephora’s Virtual Artist tool lets customers try on makeup virtually. If a user tries on a lipstick shade but doesn’t buy it, Sephora retargets them with an ad featuring that exact shade, along with a discount code.
  • Results: Sephora’s retargeting campaigns have led to a 15% increase in repeat purchases and a 25% higher click-through rate compared to traditional ads.

Takeaway: Predictive retargeting allows Sephora to stay one step ahead of their customers, offering products they’re likely to buy before they even realize they need them.

3. Shopify Merchants: Privacy-First Retargeting

Shopify Audiences - Up to 2x more orders for every retargeting dollar spent  | Shopify App Store
Shopify's personalized audience list

Small businesses on Shopify are proving that you don’t need a massive budget to run effective retargeting campaigns. 

Here’s how they’re doing it:

  • First-Party Data: Shopify merchants are using first-party data, information collected directly from customers, such as email addresses and purchase history as their marketing tactics. For example, a small fashion brand might retarget previous customers who abandoned their cart with a personalized email featuring the items they left behind.
  • Consent-Based Marketing: With privacy regulations like GDPR and CCPA, Shopify merchants are focusing on consent-based marketing for customer retention. They use tools like Shopify Email to send retargeting emails only to customers who have opted in.
  • Results: According to Shopify’s 2023 report, merchants using first-party data for retargeting saw a 40% higher conversion rate compared to those relying on third-party data.

Takeaway: Even small businesses can compete with big brands by focusing on privacy-first retargeting and building trust with their customers.

4. Amazon: The Gold Standard of Retargeting

Amazon Sponsored Ads

Amazon’s retargeting strategy is so effective that it’s become the gold standard for e-commerce brands. 

Here’s what they’re doing right:

  • Dynamic Product Ads: Amazon uses dynamic retargeting ads to show customers the exact products they viewed or added to their cart. These ads are updated in real-time, ensuring they’re always relevant.
  • Cross-Selling and Upselling: Amazon doesn’t just retarget custom audience with the same product, they also suggest complementary items. For example, if you buy a camera, they might retarget you with ads for a camera bag or memory card.
  • Results: 2024 was the first year that Amazon's ad revenue topped $50 billion. Amazon’s various types of retargeting campaigns have contributed to their 35% year-over-year growth in ad revenue, proving that smarter retargeting drives both sales and customer loyalty.

Takeaway: Amazon’s success shows the power of combining dynamic retargeting ads with cross-selling and upselling strategies.

5. Fashion Nova: Social Media Retargeting Done Right

How Fashion Nova Built a Billion-Dollar Brand with Influencers
Fashion Nova collaborating with influencers

Fashion Nova has built a billion-dollar empire by mastering successful retargeting strategies. 

Here’s how they do it:

  • Influencer Partnerships: Fashion Nova collaborates with influencers to create buzz around new products on Facebook ads and Instagram ads. If a user engages with an influencer’s post but doesn’t make a purchase, Fashion Nova retargets them with display ads featuring the same product.
  • User-Generated Content (UGC): Fashion Nova encourages customers to share photos of themselves wearing their clothes. They then retarget users with ads featuring UGC, creating a sense of community and authenticity.
  • Results: Fashion Nova’s retargeting campaigns have helped them achieve a 90% repeat purchase rate, making them one of the most successful fast-fashion brands in the world.

Takeaway: By combining influencer marketing and UGC, Fashion Nova creates retargeting campaigns that feel personal and authentic.

Smart Retargeting with GoAudience

GoAudience is a powerful tool that makes retargeting easy with its powerful zero-party data collection tools and the innovative Audience Radar feature. 

With GoAudience, you can:

  • Build trust by gathering opt-in data directly from ideal customers.
  • Use Audience Radar for customer segmentation and target your customer base with precision based on their preferences and behaviors.
  • Create hyper-relevant campaigns while staying fully compliant with privacy standards.

If you want a smart way to retarget your ads, you should future-proof your marketing efforts with GoAudience, where privacy meets personalization.

Frequently Asked Questions

What is retargeting in e-commerce?

Retargeting is a digital marketing strategy that involves showing ads to users who have previously interacted with your website or app but didn’t make a purchase. It helps bring potential customers back to complete their purchase by reminding them of the products they viewed.

Why is retargeting important for e-commerce brands?

Retargeting is crucial because it helps B2B businesses as well as B2C companies to re-engage potential customers who are already interested in their products. Studies show that retargeted customers are 70% more likely to convert than new visitors, making it a cost-effective way to boost sales.

How does AI improve retargeting strategies?

AI improves search retargeting by analyzing customer behavior, predicting future actions, and delivering hyper-personalized online advertising. For example, AI can identify when a customer is most likely to make a purchase and show them a retargeting ad at the perfect time.

What are the best retargeting platforms for e-commerce?

Some of the best retargeting platforms include:

How e-commerce brands retarget without third-party cookies?

With the phasing out of third-party cookies, brands can use:

  • First-party data: Information collected directly from potential buyers (e.g., email lists, purchase history).
  • Zero-party data: Data customers willingly share (e.g., preferences, survey responses).
  • Contextual targeting: Showing ads based on the content of the webpage rather than user interaction or behavior.

Is retargeting different from remarketing?

While retargeting and remarketing campaigns are often used interchangeably, they have subtle differences. Retargeting is more ad-focused, while remarketing campaign is often email-based. However, both campaign goals aim to bring high-intent prospects back and encourage them to take action. Using them together can create a powerful combination to boost conversions and customer loyalty!

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