Retargeting is advertising to people who have already interacted with you, such as website visitors, to bring them back. Because these audiences already know you, retargeting typically converts better and costs less per result than advertising to cold audiences, though its reach is capped by your existing traffic.

Retargeting is efficient because you are advertising to people who already showed interest, not strangers. That is also its limit: it can only reach as many people as already visited you, so it cannot be a growth engine on its own. Treat it as a conversion tool that catches warm prospects who did not act the first time, not as a source of new demand.

Example:

Showing a relevant message to someone who visited your pricing page but did not inquire recovers warm prospects who would otherwise slip away.

Why does retargeting convert well?

It reaches people who already know you and showed interest, so they convert at higher rates and lower cost than cold audiences.

Why can retargeting not drive growth alone?

Its reach is limited to people who already visited you. It converts existing demand rather than creating new demand.