Definition
Retargeting targets users who previously visited or engaged. It often has higher ROAS but can be heavily attribution-biased.
Common mistakes
- Over-crediting retargeting without incrementality checks.
- Excess frequency causing annoyance and wasted spend.
Why this matters
This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.
Practical checklist
- Write a 1-line definition for "Retargeting" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Paid ads measurement hub: ROAS, MER, marginal ROAS, and incrementality) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Break-even CVR Calculator: Compute the CVR required to break even (and hit a target) given CPM, CTR, AOV, and contribution margin.
- Click-through Conversion Rate Calculator: Calculate click-through conversion rate (click-to-conversion CVR) and estimate required clicks for target conversions.
- ROAS Calculator: Calculate Return on Ad Spend (ROAS) and estimate contribution profit after ad spend.
- Break-even ROAS Calculator: Estimate the break-even ROAS based on contribution margin assumptions.
- Target ROAS Calculator: Estimate a target ROAS to cover variable costs plus a desired margin buffer.
Guides
- Paid ads measurement hub: ROAS, MER, marginal ROAS, and incrementality: A practical hub for paid ads measurement: connect ROAS to profit, use MER for top-down truth, watch marginal ROAS for scale, and validate incrementality with holdouts.
- Attribution vs incrementality: what to trust, when, and how to test: A practical guide to attribution vs incrementality: common attribution models, window pitfalls, how MER/marginal ROAS fit in, and how to run holdout/geo tests.
- Creative + landing page playbook: diagnose CTR/CVR, then set break-even targets: A practical playbook for improving paid ads performance: use CTR/CVR diagnosis, set break-even CTR/CVR/CPM targets from your economics, and fix the biggest lever first.