Also called remarketing
Retargeting shows advertising to people who already interacted with you, rather than to a cold audience.
Retargeting works because the hard part is already done: the audience knows who you are. Rates are typically several times better than cold advertising, and costs per acquisition correspondingly lower.
Its ceiling is the size of the pool. You can only retarget as many people as visited, so retargeting scales with traffic and cannot substitute for it.
Frequency capping matters more here than anywhere else. The same advertisement shown twenty times to someone who chose not to buy stops persuading and starts irritating, and the irritation attaches to the brand.
In practice
Showing a reminder only to people who reached checkout and did not pay is a small, cheap audience with the highest intent you will ever address.
Common mistake
Retargeting everyone who visited, indefinitely. Excluding buyers and capping frequency does most of the work of making it tolerable.
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