Retargeting Conversion Rate

KPI Name

Retargeting Conversion Rate

Alternative Names

Remarketing Conversion Rate

KPI Description

Measures the percentage of retargeted users who complete a desired action after seeing an ad.

Category

Marketing

KPI Type

Quantitative, Lagging

Target Audience

PPC Managers, Digital Marketers, Business Owners

Formula

Retargeting Conversion Rate = (Conversions from Retargeting Ads ÷ Total Retargeted Visitors) × 100

Calculation Example

If 2,000 users see a retargeting ad and 200 convert, Retargeting Conversion Rate = (200 ÷ 2,000) × 100 = 10%

Data Source

Google Ads, Facebook Ads, LinkedIn Ads

Tracking Frequency

Weekly, Monthly

Optimal Value

A higher rate indicates effective remarketing.

Minimum Acceptable Value

A very low rate suggests ineffective ad targeting or creative.

Benchmark

Industry benchmarks: E-commerce ~5-15%, SaaS ~8-20%, B2B ~3-10%

Recommended Chart Type

Bar chart (to compare ad platforms), Line chart (to track trends)

How It Appears in Reports

Displayed in digital advertising reports to evaluate retargeting efficiency.

Why Is This KPI Important?

Indicates how well retargeting campaigns recapture lost visitors.

Typical Problems and Limitations

Retargeting fatigue can reduce effectiveness over time.

Actions for Poor Results

Optimize ad creatives, adjust frequency capping, segment audiences.

Related KPIs

Conversion Rate, Cost per Lead (CPL), Customer Acquisition Cost (CAC)

Real-Life Examples

A fashion brand improved retargeting conversion rates from 6% to 12% by using dynamic product ads.

Most Common Mistakes

Focusing on retargeting without improving the landing page experience.