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What Is Retargeting in Google Ads and How Does It Work?

January 29, 2026

Ever noticed the same product popping up again and again, even though you searched for it two weeks ago?

Does it feel like the product is following you around the internet?

You open YouTube, and there it is.

You browse Instagram, and you see it again.

Even when you check the news, it’s still there.

Honestly, it feels like the internet is possessed.

But the truth is, it is not a coincidence, nor is your internet possessed. It is Google Ads Retargeting.

In the present Sydney, where people get distracted in a second, Google Ads retargeting/remarketing acts like a gentle reminder. This process is not random but is a strategic approach to turn a random visitor into a lead/sales.

In this blog, we will learn about Google Ads retargeting/remarketing, how it works, the benefits, types of campaigns, setting up a campaign, best practices, and common mistakes to avoid while retargeting a Google Ads campaign.

What Is Google Ads Retargeting?

Think of Google Ads retargeting as a process of re-engaging a user who visited your website and showed interest in your product, but did not take any action. Like a boomerang, which plays on a loop to targeted people.

Google Ads retargeting/remarketing is a strategic process to show the ads of your products to the people who visited your website or searched for your product again and again, so that they are encouraged to take the final action.

This process is used to reconnect with the people who know your product and have an interest in your product, instead of chasing complete strangers. As a result, retargeting/remarketing ads give better results, better clicks, and better conversions than regular ads.

How Google Ads Retargeting Actually Works?

Retargeting is not magic. It is a smart and strategic system.

It requires a significant amount of effort and a thorough understanding of Google Ads and your target audience. Here is how Google Ads retargeting works:

Track Visitors via Cookies and Tags

When a visitor lands on a website, Google collects the information of the visitor. Google Ads tags and cookies work together to show personalised ads. The Google Ads tag is a small code on a website that reads cookies to identify unique users and record their activities.

Build Visitor List

As soon as a visitor visits a website, Google sorts them into different categories, such as people who visited the homepage, clicked on a product, added to cart, or returned to the website but didn’t convert. This helps businesses target people depending on their actions on the website.

Showing Ads Across Google Platforms

After tracking and categorising the audience, your Google Ad starts to pop up on various Google platforms, such as YouTube, Google search, blogs, apps, and news sites etc. That’s how the audience gets a reminder of your business, and they get to know about your existence.

Through retargeting, people who know about your business or product or have shown some interest give a cheap CTR and high CR.

Benefits of Google Ads Retargeting

Google Ads retargeting comes with multitudinous benefits. Some of them are listed below:

  1. You reach interested people.
  2. The conversion rate increases.
  3. The advertising cost decreases.
  4. It increases brand recall.
  5. It delivers personalised ads, i.e., tailored messages for different users.

Types of Google Ads Retargeting

There are various types of Google Ads retargeting. It is important to select one that fits right with your audience. Here are the main types of Google Ads retargeting:

  1. Website Retargeting: Best for product-based businesses, services, and landing page traffic.
  2. Search Retargeting: Known as Remarketing Lists for Search Ads, is best for high-intent buyers, competitor searches, and price-sensitive products.
  3. YouTube Retargeting: Best for website visits, YouTube views, and past ad views.
  4. Display Retargeting: Shown across news sites, blogs, and apps. Best for products and brand awareness.
  5. App Activity Retargeting: Best for app installs, app usage, and in-app actions.

Setting Up a Google Ads Retargeting Campaign

Setting up a Google Ads retargeting campaign is a little technical. But once you understand, it gets easy. Here is how you can set up a retargeting campaign step-by-step:

  1. Install a Google Ads Tag on your website through GTM, your website builder, or add a direct script to your website.
  2. Create the audience list for retargeting. Choose the action you want them to take, such as visit the website, view the product, or add to the cart, etc.
  3. Choose the campaign type depending on your goal.
  4. Create a compelling ad copy. Use high-quality visuals, string CTAs, and crisp and clear messages.
  5. Set your ad budget. Start small with bidding options that maximise conversions, target CPA, and increase CTR.
  6. The last step is to launch your campaign.

Work is not complete after launching the campaign. You need to monitor and optimise your campaign for better results. Retargeting is a continuous cycle of tweaks and refining.

What are the Best Practices for Retargeting and Common Mistakes to Avoid?

Google Ads retargeting is effective when you use the below best practices:

  1. Segmenting your audience.
  2. Use compelling Ad creatives to match the moment.
  3. Updating the ad creative regularly with new visuals, CTAs, and rewards.
  4. Bid smart with the known audience.
  5. Use strong landing pages for conversions.

Avoid below common mistakes while retargeting your Google ads for better conversions and leads:

  1. Avoid over-targeting.
  2. Not excluding converters.
  3. Using the same creative again and again.
  4. Choosing a broader audience.
  5. Not optimising ads for mobile.
  6. Not giving the time to customers to breathe.
  7. Overloading discounts.
  8. Retargeting without knowing the audience.
  9. Not testing different ad creatives for better results.

Final Thought: Retarget with Digital Impact Gurus

Retargeting is not guesswork. It is a smart process to follow leads and encourage conversions by understanding the user’s journey and intent. You need a proper understanding of the process and even professional help to improve your digital marketing strategies.

The Digital Impact Gurus is Sydney’s best company that offers digital marketing services for all businesses, including Google Ad retargeting. Reach out to the Digital Impact Gurus to book your digital marketing services.

Digital Impact Gurus also offer

1) Free SEO Audit

2) Book a Strategy Session

Ready to Grow? Call Us Now

Frequently Asked Questions

What is Google Ads Retargeting?

Google Ads retargeting is a process of showing the ads of your business or product to people who showed interest but did not convert.

Is retargeting is expensive process?

Not really. If done right, retargeting is a cost-effective process.

Does retargeting annoy consumers?

Yes. If you do not use different creatives and frequency caps, it can annoy the consumers.

What are the three most important features of an ad creative?

The three most important features of an ad creative are:

  • Clear visuals
  • Strong and clear message according to the audience’s interest
  • Simple CTA
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