Ever wondered how ads of a certain website that you looked at suddenly show up when you surf on other websites when that never happened before? Although it gives the impression that the site is stalking you, it runs on a simple software which is meant to draw potential customers of the site who leave without buying. This is called Retargeting or Remarketing. For most sites, only 2% of the traffic converts into actual sales; Retargeting is all about capturing the other 98.
A simple code is embedded into your website and when a potential customer enters your site, this code drops an anonymous retargeting cookie in his/her browser. Now when this customer surfs the web, the cookie tells the retargeting provider when to show ads.
The key quality of using such a software is that it shows ads only to those people who have previously visited your site and shown some interest. They use this familiarity and repeated exposure to advertise and capture customers. It is also important to know which product and when it is retargeted. For example, it will be very effective to retarget specific products that the customer showed interest in; and people who were shopping for plane tickets should be retargeted immediately while the ones who were shopping for a suit should be retargeted later.