There’s more to ad retargeting these days than just following consumers around the internet with product images of the last item they viewed. Savvy retailers are turning their attention to more dynamic retargeting methods, such as ads and emails that incorporate personalized videos, and campaigns that apply data to better understand when to stop retargeting a consumer.

Retargeting enables a merchant to reach a consumer who has shown interest in the retailer or its products, making it an important piece of a retailer’s digital marketing strategy. Many retailers say they dedicate anywhere from 3% to 30% of their digital advertising budget to retargeting. A 2016 report by marketing consulting firm Winterberry Group predicted that U.S. marketers would spend $68.6 billion on digital advertising last year, with 44% of that going toward display ads, which include retargeting. That would be an increase from marketers’ 2015 digital ad spend of $59.5 billion, with 42% going toward display and retargeting.

With retargeted advertising, retailers can show personalized messages on the web and, increasingly, on social media to consumers based on their browsing history. So if a consumer looks at a coffee table on a retailer’s website, for example, that retailer might deliver a personalized ad on Facebook, with images of that coffee table and a message like, “A special offer just for you.” And some of the latest techniques available to retailers take a more targeted approach than what’s been available in the past, which is helping the retailers that use them to more effectively drive sales.

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