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How to Set Up Facebook Retargeting

How to Set Up Facebook Retargeting

Did you know that retargeted website visitors are 70% more likely to convert? That’s because people who have already interacted with your brand are far more likely to take action when reminded of your product or service. This is where Facebook retargeting becomes a powerful tool for businesses.

retargeting statistics report

Retargeting statistics report provided by Invesp

Nowadays, getting website visitors or social media engagement is only half the battle. The real challenge is turning those warm leads into paying customers. Retargeting allows businesses to reconnect with potential buyers who have shown interest but haven't yet converted. Whether it’s someone who visited your website, clicked on an ad, or engaged with a post, a well-planned Facebook retargeting strategy ensures your brand stays top-of-mind and encourages them to take the next step.

In this guide, we’ll break down everything you need to know about how to create retargeting ads on Facebook. You’ll learn:

  • What Facebook retargeting is and how it works,
  • How to set up a Facebook retargeting audience to reach warm leads,
  • Step-by-step instructions for launching a Facebook retargeting campaign,
  • Best practices for optimizing your retargeting ads for maximum ROI.

By the end of this article, you’ll have the tools and knowledge to build a Meta retargeting strategy that drives more conversions and increases your ad efficiency.

What is Facebook retargeting?

Facebook retargeting is a powerful advertising strategy that allows businesses to re-engage users who have previously interacted with their brand. Whether someone visited your website, engaged with your social media content, or added a product to their cart without purchasing, Meta retargeting ads ensure your business stays top of mind.

Retargeting vs. Remarketing: What’s the difference?

Being into digital marketing, you’ve probably heard both terms – retargeting and remarketing. While often used interchangeably, they have key differences:

  • Retargeting ads: Focus on showing targeted ads to users based on their past online behavior, primarily using tracking pixels and cookies.
  • Remarketing ads: Typically use email marketing or other direct messaging to re-engage past customers or leads.

In short, Facebook remarketing campaigns often involve re-engaging leads through direct communication, while Facebook retargeting campaigns focus on serving ads to potential buyers based on their activity.

Key benefits of Facebook retargeting

Implementing a Facebook retargeting strategy offers several advantages:

By understanding how Facebook retargeting works, businesses can leverage these benefits to drive more sales and engagement efficiently.

How does Facebook retargeting work?

A strong Facebook retargeting strategy helps businesses reconnect with potential buyers who have already shown interest in their products or services. By tracking user interactions and serving tailored Facebook retargeting ads, businesses can boost conversions and maximize ad spend.

When someone visits your website, adds a product to their cart, or engages with your content but doesn’t complete a purchase, Facebook retargeting allows you to remind them of your offer through targeted ads. These ads appear on their Facebook and Instagram feeds, Stories, Messenger, and Audience Network, keeping your brand top of mind.

Facebook Pixel: The foundation of retargeting

At the core of Meta retargeting is the Facebook Pixel — a small piece of code you install on your website. The Pixel collects data on user behavior, including:

  • Page visits – Tracks users who viewed specific pages, like product pages or pricing pages.
  • Cart activity – Detects users who added items to their cart but didn’t check out.
  • Purchases – Helps measure the effectiveness of your Facebook retargeting campaign by tracking completed transactions.

By gathering this data, the Facebook Pixel helps you create highly targeted retargeting ad campaigns to bring users back and encourage conversions.

Using Facebook retargeting audiences

A Facebook retargeting audience is a custom group of users who have previously interacted with your business. You can segment these audiences based on:

  1. Website visitors – Show ads to users who have visited your website within a specific timeframe.
  2. Social media engagement – Retarget people who have liked, commented, or shared your content on Facebook or Instagram.
  3. Customer lists – Upload an email or phone number list to target past customers or leads.
  4. App activity – Retarget users based on in-app actions, such as sign-ups or purchases.

By leveraging these retargeting audiences, businesses can create highly personalized Facebook ads that remind potential customers why they were interested in the first place.

Setting up Facebook retargeting campaign step-by-step

Setting up Facebook retargeting ads involves a few essential steps to track visitors, build your audience, and launch effective campaigns. Here’s a step-by-step guide to get started:

Step 1: Install the Meta Pixel on your website

To track visitors and retarget them with ads, you need to install the Meta Pixel on your website. Here’s how:

  1. Go to Meta Events Manager – Navigate to Meta Business Suite and select “Events Manager”.
  2. Create a new pixel – Click “Connect data”, select “Web”, enter a name for your pixel, and click “Create pixel”.
  3. Install the pixel code – Copy the pixel code and paste it into the <head> section of your website. For eligible websites, such as Shopify or WordPress, you can use partner integration to simplify this process.

connecting website activity using pixel

Once installed, the Pixel will start collecting visitor data, allowing you to build retargeting audiences and track conversions.

Step 2: Create a Facebook retargeting audience

After the Pixel is collecting data, you need to create a Facebook retargeting audience:

  1. Proceed to the Audiences section – In Meta Business Suite, open “Audiences”.
  2. Create a new custom audience – Click “Create audience”, select “Custom audience”, and choose “Website” as a source.
    create a website custom audience
  3. Set up your audience – Select the targeting criteria (e.g. all website visitors or the ones who visited specific pages) and the time frame (how recently users interacted).
  4. Save the audience – Name the audience and save it for use in ad campaigns.

Step 3: Set up a Facebook retargeting ad campaign

Now that you have a proper audience, it’s time to launch your Facebook retargeting campaign:

  1. Start creating an ad campaign – Go to the Ads Manager, click “Create”, and choose your campaign objective.
  2. Set up the campaign and ad set – Select the audience you’ve created in Step 2 at the ad set level of your campaign.
  3. Create your ad – Use engaging content and a compelling CTA addressing the reasons why these people might have left your website without making a purchase. Some effective ad formats include:
    1. Carousel ads – Showcase multiple products or benefits in one ad.
    2. Video ads – Use dynamic content to re-engage past visitors.
    3. Discount or limited-time offer ads – Encourage immediate action with exclusive deals.
    4. Testimonial ads – Use customer reviews or case studies to build trust.

By carefully setting up and optimizing your Facebook retargeting campaign, you can effectively re-engage with lost visitors, reminding them of your products or services, and ultimately turning them into paying customers, even after they've left your website or abandoned their shopping cart.

Best Facebook retargeting strategies for high conversions

Once you’ve set up your retargeting ad campaigns, the real power comes from applying smart strategies that drive action. The goal of any Facebook retargeting strategy is to reconnect with users who’ve already shown interest and turn that interest into conversions. Let’s walk through some of the most effective strategies to run the best retargeting ads.

Use dynamic retargeting ads for personalized products

Dynamic ads are a staple in Facebook remarketing and retargeting. They automatically show users the exact products they viewed on your site, increasing relevance and chances of a purchase. These ads pull information from your product catalog and display it based on user behavior tracked by the Facebook Pixel.

Facebook's dynamic ads

Facebook's dynamic ads enable you to automatically promote your entire product catalog without having to create thousands of individual ads.

Why it works: Personalization boosts engagement, and when users see familiar items, they’re more likely to return and complete the purchase.

Example: A user browses sneakers on your store — Facebook then shows that same user those exact sneakers in an ad later that day. That’s the magic of Meta retargeting ads.

Target cart abandoners and past website visitors

One of the most profitable Facebook retargeting audiences includes people who added items to their cart but didn’t buy. These users are already warmed up, you just need the right nudge to close the deal.

targeting past visitorsIt would be a good idea to offer a discount or a coupon for those who’ve abandoned their cart.

Why it works: People who abandon their cart or browse your product pages are already interested — they just need the right motivation to complete the action. A reminder or incentive through a Facebook ad can be the push they need.

Example: A visitor adds a jacket to their cart but leaves without buying. You show them a Facebook retargeting ad the next day offering 10% off or highlighting “Only a few left in stock.” That urgency helps drive conversions.

Leverage lookalike audiences based on retargeting data

While not technically “retargeting,” lookalike audiences are a perfect extension of your retargeting strategy. These are new users who share similar traits with people in your retargeting audience, meaning they’re statistically more likely to convert. You’ll just need to create a lookalike audience based on your custom retargeting list (cart abandoners, buyers, etc.) and launch ads with proven creatives that have already converted.

creating a Facebook lookalike audienceWhile creating a lookalike audience, you will need to select the percentage of affinity as well as the audience location.

Why it works: Lookalike audiences allow you to reach people who are similar to your existing warm leads or customers. These are individuals who haven't interacted with your brand yet, but are statistically likely to respond to your ads.

Example: You build a lookalike audience based on past purchasers tracked via your Facebook retargeting audience. When you run ads to these people, you use proven creatives and messaging that already work, bringing in new leads without guessing.

These strategies are the foundation of any high-converting retargeting campaign. Whether you’re just learning how to create retargeting ads on Facebook or optimizing a seasoned approach, focus on personalization, timing, and segmentation.

Facebook retargeting: smart tips and costly mistakes to watch out for

Setting up your Facebook retargeting campaign is just the beginning. To actually get results — whether that’s more sales, sign-ups, or bookings — you need to pay close attention to how your ads are built and how your audiences are defined. Let’s break down key tips to boost performance and common mistakes that could hurt your Facebook remarketing and retargeting efforts.

Tips for better retargeting performance

1. Refresh your creatives regularly

Even the best Facebook retargeting ad can get stale if your audience keeps seeing the same thing. Swap out headlines, images, or calls to action every 1-2 weeks to keep things fresh and avoid ad fatigue.

2. Use clear and compelling CTAs

A strong call to action like “Claim Your Discount,” “Finish Your Purchase,” or “Get It Before It’s Gone” works way better than a generic “Learn More.” Clear CTAs help nudge warm leads into taking the next step.

3. Segment your retargeting audience

Instead of lumping everyone together, break your Facebook retargeting audience into smaller groups — like cart abandoners, product viewers, or video watchers — and tailor your ads to each one. The more relevant the message, the better your conversions.

4. Add a time-sensitive offer

People respond to urgency. Including a time-limited discount or bonus can give hesitant buyers the extra push they need to act.

Common mistakes to avoid

1. Not using the Facebook Pixel properly

Your Meta retargeting ads won’t work if the Pixel isn’t installed correctly. Make sure it's tracking the right events (like "Add to Cart" or "Purchase") so your campaigns are based on real user actions.

2. Retargeting too soon (or too late)

Timing matters. Hitting people with ads too quickly can feel aggressive, while waiting too long can make them forget about your brand. Test different retargeting windows — like 1-day, 3-day, or 7-day audiences — to find your sweet spot.

3. Ignoring frequency and relevance

If your retargeting campaign is hitting users 10 times a day with the same message, you're probably wasting budget and annoying potential customers. Monitor frequency and relevance score to keep your ads efficient and engaging.

4. Treating everyone the same

Don’t send the same ad to a cart abandoner and a blog reader. These are very different types of leads. Tailor your messaging based on where someone is in the buyer journey.

Avoiding these pitfalls and following proven Facebook retargeting strategy tips can significantly improve your return on ad spend. Whether you’re working on your first retargeting campaign or looking to improve your results, small adjustments can make a big difference.

Ready to retarget like a pro?

For every digital marketer, including those who are aiming to recover lost sales, re-engage warm leads, or just stay top-of-mind, a smart Facebook retargeting campaign can make all the difference. With the right strategy, these ads are not only cost-effective — they convert at higher rates and deliver a much better ROI than cold outreach.

If you’ve ever asked, “How well does retargeting work?”, or “How to do retargeting on Facebook”, now you’ve got a full playbook. From installing the Pixel and building a retargeting audience to choosing the right ad formats and avoiding common mistakes, you’re ready to get your campaign off the ground.

Start simple. Launch your first Facebook retargeting ad, track the results, and tweak your messaging and timing as you go. Don’t be afraid to test new angles, creatives, or offers — retargeting is all about learning what clicks with your warmest leads.


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