Display advertising is a powerful way to promote your brand online using visual ads across websites, apps, and social media platforms. Marketers commonly use display ads in two main ways: prospecting and remarketing.
Prospecting is about reaching new people who haven’t interacted with your brand yet. It’s great for building awareness and getting fresh traffic to your site. On the other hand, remarketing targets people who have already shown interest, like visiting your website or clicking on a product. This group is already familiar with your brand and more likely to convert.
While both strategies are important, display ads for remarketing often deliver better results. They tend to generate higher return on investment (ROI), more conversions, and better engagement than prospecting campaigns. Why? Because they focus on users who are already warmed up and closer to making a decision.
In this blog, you’ll learn:
- The key differences between prospecting and remarketing
- Why do display ads for remarketing usually perform better
- Tips to create high-converting remarketing ads
- How to balance both strategies in your ad campaigns
Let’s dive in and explore why remarketing might be your best bet for smarter display ad performance.
Understanding the Difference Between Prospecting and Remarketing
Before we dive deeper, it’s important to understand the difference between prospecting and remarketing, and how display ads work in both cases.
Prospecting is the process of reaching out to new, “cold” audiences—people who have never heard of your brand before. The goal here is to create brand awareness and attract new visitors to your website. With prospecting, display ads are shown to users based on their interests, demographics, online behavior, or lookalike audiences. Since these people don’t know your brand yet, the ads need to grab attention and make a strong first impression.
Remarketing, on the other hand, focuses on people who have already interacted with your brand in some way. Maybe they visited your website, viewed a product, or added something to their cart, but didn’t buy. Display ads for remarketing are shown to these users as reminders, encouraging them to return and complete their action, whether it’s signing up, making a purchase, or booking a service.
In simple terms:
Display ads play a different role in each strategy. In prospecting, they build awareness. In remarketing, they boost conversions. Understanding this difference helps you run smarter, more effective campaigns.
Why Display Ads for Remarketing Outperform Prospecting
When it comes to getting results from your ad spend, display ads for remarketing usually beat prospecting—and here’s why.
1. Higher Intent Means Better Conversion Rates
People who already know your brand are much more likely to take action. They’ve seen your products or visited your site before, so they’re not starting from scratch. Remarketing ads remind them of what they were already interested in, making it easier for them to say “yes” the second time around.
2. Lower Costs and Better Return on Ad Spend (ROAS)
Remarketing typically costs less than prospecting. Since you’re targeting a smaller, more relevant audience, you’ll often see lower cost-per-click (CPC) and better ROAS. According to multiple industry reports, businesses spend less and earn more when focusing on people who’ve already shown interest.
3. More Personalization = Stronger Engagement
Display ads for remarketing can be tailored based on what the user viewed, added to cart, or engaged with earlier. This level of personalization creates more relevant and timely messages, like showing a user the exact product they left behind. These targeted ads feel more helpful than pushy, which increases the chances of conversion.
4. Increased Visibility Without Being Annoying
Remarketing ads are shown with just the right frequency to keep your brand top-of-mind without overwhelming the user. Seeing your brand again after visiting your site helps build familiarity and trust. This is especially powerful when someone is still deciding and needs a gentle nudge.
5. Real-World Data Backs It Up
Remarketing campaigns often achieve 2–3x higher click-through and conversion rates compared to prospecting. Instapage also reports that 97% of visitors leave a website without converting, but remarketing brings many of them back. That’s a huge opportunity.
Display Ads for Remarketing Boost Conversion Rates
One of the biggest benefits of display ads for remarketing is their ability to recover lost leads and turn them into paying customers.
When someone visits your website but doesn’t take action, like buying a product or filling out a form, they often leave and forget. That’s where remarketing steps in. It gives you a second chance to reconnect with that potential customer through targeted display ads, reminding them of what they left behind.
Real-World Use Cases
- Cart Abandonment: A user adds items to their cart but leaves without purchasing. You can show them a display ad featuring the exact product, maybe even with a discount, to bring them back.
- Page Visits Without Action: Someone browses a product page or service page but doesn’t engage. Remarketing ads can highlight those products or share testimonials to build trust.
- Lead Nurturing: If a user visited your landing page but didn’t sign up, you can show ads offering value, like free guides or limited-time offers, to encourage conversion.
Better Conversion Rates Than Prospecting
Studies consistently show that display ads for remarketing lead to higher conversion rates than prospecting campaigns. For example:
- Lebesgue notes that retargeting ads often achieve conversion rates of 2% to 4%, compared to just 0.5% to 1% for cold prospecting ads.
- Instapage reports that visitors who are retargeted with display ads are 70% more likely to convert.
This means you’re not only saving money, you’re also getting more value from the traffic you’ve already earned.
In short, display ads for remarketing help you make the most of every visitor by giving them a personalized nudge to come back and complete the journey.
How to Create High-Performing Display Ads for Remarketing
To get the best results from display ads for remarketing, it’s not just about showing ads again, it’s about showing the right ads to the right people at the right time. Here’s how to do that effectively:
1. Segment Your Audience Based on Behavior
Not all visitors are the same. Some looked at one product, while others spent five minutes exploring your site. Segment your remarketing audiences based on actions like:
- Visited product or pricing pages
- Spent a certain amount of time on site
- Added items to the cart but didn’t purchase
- Signed up for a free trial but didn’t convert
This way, your ads can speak directly to where each user is in their decision-making journey.
2. Use Compelling CTAs and Personalized Visuals
Generic ads don’t work well in remarketing. Use images that reflect the exact products or services the user viewed. Match your messaging to their last interaction—like “Still thinking it over?” or “Complete your purchase now and get 10% off.”
Add a strong CTA (Call to Action) like:
- “Shop Now”
- “Return to Cart”
- “Book Your Spot”
Personal touches make a big difference.
3. Set Frequency Caps and Use Smart Bidding
You don’t want to overwhelm users by showing the same ad 20 times a day. Set frequency caps to limit how often someone sees your ad. This keeps your brand visible but not annoying. Smart bidding strategies—like “Target ROAS” or “Maximize Conversions”—help make sure you’re spending wisely on the users most likely to convert.
4. Retarget Across Multiple Platforms
Don’t limit your reach to one platform. Use display ads for remarketing across the Google Display Network, Facebook, Instagram, and even YouTube. People switch between platforms all day, and your remarketing strategy should follow them wherever they go.
By combining smart targeting, creative messaging, and the right tech settings, your display ads for remarketing can drive powerful results without wasting budget.
Conclusion
When used right, dynamic display ads for remarketing consistently deliver stronger results than prospecting. They target people who already know your brand, are more likely to convert, and respond better to personalized messages. Remarketing helps you recover lost leads, improve your ROI, and make the most of the traffic you’ve already paid for.
While prospecting is still important for growing your audience, many marketers overlook the power of remarketing. If your current campaigns aren’t performing as well as you’d like, it might be time to shift your focus and give remarketing the attention it deserves.
Ready to maximize ROI with a smarter display ad strategy? Start with remarketing.
