The Complete Digital Advertising Glossary [2026]

A term that describes the process of making ads relevant for the people who see them. Insights for ad personalization can be derived from demographic information, interests, buying behavior, etc. This information comes from cookies and pixels.

Personalized ads result in better performance as consumers tend to respond to the ads that they find relevant.  Retargeting and targeting lookalike audiences are the most effective ways of providing a high level of ad personalization.

A metric that is used to measure the cost per one thousand impressions. An impression is one time a person sees an ad. The meaning of CPM lies in the fact that it helps assess the efficiency of the ad spend.

The CPM equation is: 

Cost per impression = 1 000 x Total advertising cost / Total measured impressions.

For example, an advertiser spends $200 on an ad campaign that brings 100, 000 impressions. The CPM of such a campaign is:

CPM = 1000 x 200/100, 000;
CPM = $2.

A metric that is used to measure the cost per one thousand impressions. An impression is one time a person sees an ad. The meaning of CPM lies in the fact that it helps assess the efficiency of the ad spend.

An ad format that allows you to present several products or services within one ad. The ad can feature up to ten cards. If you set it all up properly, tapping/clicking on each card can take a user to the corresponding product page on your website.

This format has an auto-optimization feature that orders the cards according to their performance. Advertisers choose the Carousel ad format to show multiple products, highlight each feature of a product, explain a process, or tell a story.

An ad format that allows interested users to fill out a form if they want to hear back from the business, get additional information or sign up for a newsletter. For users’ convenience, some info on the form may be automatically pre-filled, and they just need to confirm it rather than entering it. Advertisers can automatically integrate these ads with their CRM to qualify leads immediately. Also, this ad format can help increase brand awareness and reach, and enhance customer acquisition.

Facebook ads with the objective to reengage people that have already expressed their interest in the products or services. Facebook retargeting ads help businesses reach out to people who have visited the website, submitted their email, followed a Facebook page, liked or commented on the post, interacted with Facebook Events and/or apps, the Instagram page, etc.

The main benefits of such campaigns are engaging people who are already familiar with the business, personalize ads automatically, and ensuring retention of existing customers. To run retargeting ads, advertisers need to install Facebook Pixel.

A promotional message that appears on Facebook. It can feature an image, a video, a set of images/videos, a lead form, a link to the Facebook Page or the website. Business owners use such messages to tell potentially interested people about their products/services and to reengage the website visitors.

The most common ad placements (places, where the ad appears) are:

• Newsfeed on desktop and mobile;
• in the right column of Facebook on desktop;
• on Facebook Stories;
• In-Steam Videos, etc.

To see all placements, visit Facebook’s Business Help Center. Advertisers can optimize their Facebook ads according to the objectives — Brand Awareness, Reach, Lead Generation, audiences, placement, budget, formats, and more. Business owners and marketers can view and optimize their performance in the Ads Manager.

A mobile-only ad format that offers users a full-screen experience. Facebook Canvas Ads are now known as Facebook Instant Experiences. When creating the ad, marketers can choose a template or select Custom Instant Experience to add and arrange videos and photos, carousels, tagged products, buttons, text blocks, etc.

Such ads load up to 15x faster compared to standard mobile web ads. Instant Experiences ads are great for brand awareness and mobile shopping. Advertisers can create their ads from scratch or choose one of the easy-to-use templates.

Ads that appear on Google and partnered websites and mobile apps. Google Discovery Ads help business owners reach over 3 billion customers.

This type of ads is great for building brand awareness by reaching out to new people and re-engaging people who are already familiar with your brand including existing customers.

Ads that appear on the Google Search page above the search results. Google Shopping Ads feature shopping information including the name of the product, image, price, and the seller.  You can set up, optimize and view reports of such campaigns in Google Ads.

Merchants can use product groups to choose the products to advertise in each campaign. Also, such product groups can be divided into subgroups by category, the type of the product, and brand.

Ads that appear on the Google Search page. Google Search Ads help businesses increase sales, generate leads, and bring website traffic by targeting people looking for specific products and services. Then, you can create ad groups for different Google searches and target the keywords for each group. Google offers a dynamic way of creating an ad group where Google algorithms target searchers and create ads based on the website content.

Also, when adding headlines and descriptions to the ads, it is important to make sure that they match the targeted keywords.

Video ads that support a range of ad formats. Such ads are hosted on YouTube and placed on YouTube and across Google video partner sites. They can appear on desktop, mobile, and TV screens.

Google video ads can be:

• skippable and non-skippable in-stream ads;
• video discovery ads;
• bumper ads;
• outstream ads;
• masthead ads.

It is recommended to use this type of ads to increase brand awareness and extend the reach within a short period.

Visually rich ads that appear on articles, websites, YouTube, and mobile apps. Google Display Ad Formats are great for giving a brand large exposure as they are served on Google Display Network that reaches about 90% of internet users.

Such ad formats are responsive which means that when you create an ad, you just need to provide the text, images, and logo, and Google will optimize the ad to ensure high performance. This makes sure that your ad “natively” fits the website it is published on. Since Display ads target audiences based on their interests, they are effective for attracting the attention of people before they even start looking for a product.

Ads that appear on Instagram Stories. They are full-screen in vertical format and can feature photos, videos, and Call-To-Action. Instagram Stories Ads are available only to business accounts. Such ads are created in Ads Manager and can be optimized for a variety of objectives such as reach, video views, traffic, conversions, app installs, and brand awareness. The insights on the performance are accessible in Ads Manager and also right in the Instagram app in the Insights section.

Ads that appear on Instagram Stories. They are full-screen in vertical format and can feature photos, videos, and Call-To-Action. Instagram Stories Ads are available only to business accounts. Such ads are created in Ads Manager and can be optimized for a variety of objectives such as reach, video views, traffic, conversions, app installs, and brand awareness. The insights on the performance are accessible in Ads Manager and also right in the Instagram app in the Insights section.

Ads placed on Instagram that feature a photo. Such ads can appear on both Instagram Feed, Explore, and Stories. Instagram Photo Ads are great for such objectives as reach, app installs, brand awareness, lead generation, conversions, messages, traffic, etc.

To run Instagram photo ads, you can either create a new ad from scratch in the Ads Manager or the Instagram app in the Insights section → Promotion. Alternatively, you can choose one of the posts on your page and tap Promote. Instagram often suggests the best-performing posts to advertise.

Videos that advertisers use for paid promotion of their businesses. Instagram Video Ads can appear on Feed, Explore, IGTV Ads, and Stories. Also in early April 2021, the company started testing placing ads in Reels.

Here are several things you need to keep in mind when running such ads:

First, а include the most important information in the first seconds of the video, because if your video doesn’t catch attention right at the start, a user will scroll on to the next post.

Also, add captions as Instagram video is muted by default, and you don’t want to lose consumers because they don’t understand what is happening in the video.

Lastly, focus on providing a solution to the relevant problem of your target audience to increase the performance of your video ads.

Ads where the content is presented as slides. Instagram Carousel Ads appear in Feed and Stories. To create a carousel, you will need from two to ten images or videos. You can also choose the order in which the slides appear in the ad.

As in the other campaigns, you can choose the button depending on your objectives and the action you want people to take. Also, you can select Instagram as the placement when setting up Facebook Carousel Ads in the Ads Manager.

Meta Pixel (formerly known as Facebook Pixel) is an analytics tool that allows you to measure the effectiveness of your advertising by understanding the actions people take on your website.

Facebook ads that appear on Facebook Messenger. To create such ads, advertisers need to choose Messenger as their placement in the Ads Manager. Messenger Ads appear right in the Chat tab in the Messenger app, as well as in Messenger stories. Also, businesses can offer people to start a conversation with them by optimizing their ads for Messages.

A way to link marketing activities to certain results such as sales. The main purpose of such attribution is to see the efficiency of the marketing practices.

There are various marketing attribution models:

• last interaction — last touchpoint receives all the credit for a conversion;
• linear — each touchpoint receives the same credit for a conversion;
• time decay — the touchpoints closer to the conversion receive more credit.

Using marketing attribution allows companies to optimize creatives and see which ones to get rid of, improve personalization, optimize budgets, and increase ROAS.

Google ads that feature multiple headlines and descriptions that adapt depending on the performance. When creating Responsive Search Ads, you can create up to 15 headlines and 4 descriptions. Later, Google runs tests with different combinations of headlines and descriptions to understand which ones have the best performance. Thus, with time you will receive the best copy for your ad depending on the keyword, device, etc.

Google Ads retargeting (officially called remarketing by Google) is an advertising strategy that shows targeted ads to people who have already visited your website or interacted with your app. Instead of reaching cold audiences, Google Ads retargeting focuses on users who have demonstrated interest in your products, making them significantly more likely to convert.

For eCommerce store owners, Google Ads retargeting is one of the most cost-effective ways to recover abandoned carts, increase repeat purchases, and boost overall return on ad spend (ROAS). Studies consistently show that retargeted visitors are 70% more likely to complete a purchase compared to first-time visitors.

How Does Google Ads Retargeting Work?

Google Ads retargeting works by placing a small piece of tracking code (the Google Ads tag, formerly known as the remarketing tag) on your website. When someone visits your site, this tag adds them to a remarketing audience list. Later, when those users browse other websites in the Google Display Network, watch videos on YouTube, or use Google Search, your ads can appear to remind them of products they viewed.

The process follows three steps. First, a visitor lands on your website and the Google Ads tag fires, adding an anonymous cookie to their browser. Second, that visitor leaves your site without purchasing and continues browsing the web. Third, your retargeting ads appear on websites, apps, YouTube, and Gmail, bringing the visitor back to complete their purchase.

Types of Google Remarketing Campaigns

Google offers several types of remarketing campaigns, each suited to different goals and audiences.

Standard remarketing shows display ads to past visitors as they browse websites and apps in the Google Display Network. This is the most common type and works well for general brand awareness and bringing visitors back to your store.

Dynamic remarketing takes standard remarketing further by showing ads that feature the exact products a visitor viewed on your site. For eCommerce stores, dynamic remarketing is especially powerful because it personalizes the ad creative automatically based on each user's browsing history. If someone looked at a specific pair of shoes, they will see that exact pair in the ad.

Remarketing lists for search ads (RLSA) lets you customize your search campaigns for people who have previously visited your site. When a past visitor searches on Google, you can adjust your bids, show different ad copy, or target broader keywords specifically for these high-intent users.

Video remarketing targets users who have interacted with your YouTube videos or channel. You can show them ads across YouTube, Display Network sites, and apps.

Customer list remarketing (also called Customer Match) allows you to upload lists of customer email addresses. Google matches these to signed-in users and shows your ads across Search, Shopping, Gmail, and YouTube.

How to Set Up Google Ads Retargeting

Setting up Google Ads retargeting requires a few key steps. Start by installing the Google Ads tag (global site tag) on every page of your website. For Shopify stores, you can add this tag through the theme settings or use an app like Adwisely that handles tag installation and campaign setup automatically.

Next, create remarketing audience lists in Google Ads. You can segment audiences based on which pages they visited, how long they spent on your site, whether they added items to their cart, or whether they completed a purchase. The more specific your audience segments, the more relevant your retargeting ads will be.

For dynamic remarketing, you also need to set up a product feed in Google Merchant Center and link it to your Google Ads account. This feed provides the product images, titles, prices, and URLs that Google uses to build personalized ad creatives. Shopify stores can sync their product catalog to Merchant Center using the Google & YouTube channel app or through automation tools like Adwisely.

Finally, create your remarketing campaign. Choose the Display Network for standard or dynamic remarketing, or modify an existing Search campaign to use RLSA. Set your budget, select your audience lists, and create compelling ad creatives that encourage visitors to return.

Google Ads Retargeting Best Practices for eCommerce

Segment your audiences by behavior. Create separate audience lists for homepage visitors, product page viewers, cart abandoners, and past purchasers. Each group has different intent levels and should see different messaging. Cart abandoners, for example, respond well to urgency or discount offers, while past purchasers might respond to cross-sell or new arrival campaigns.

Set frequency caps. Showing the same ad too many times can annoy potential customers and waste your budget. A frequency cap of 3 to 5 impressions per user per day is a good starting point for most eCommerce stores.

Use membership duration strategically. The default audience membership duration is 30 days, but you should adjust this based on your sales cycle. For low-cost impulse purchases, a 7 to 14 day window may be sufficient. For higher-priced items, extending to 60 or 90 days can capture buyers who need more time to decide.

Exclude converted users. Once someone has made a purchase, remove them from your retargeting audience (or move them to a separate list for upsell campaigns). This prevents wasting ad spend showing product ads to people who already bought.

Test different ad formats. Google Display ads come in multiple sizes and formats, including responsive display ads that automatically adjust their size and layout. Test static banners, responsive ads, and different calls to action to find what drives the best return for your store.

Google Ads Retargeting vs. Facebook Retargeting

Both Google and Facebook offer retargeting capabilities, but they work differently. Google Ads retargeting reaches users across over 2 million websites in the Display Network, plus YouTube and Gmail. Facebook retargeting (powered by the Meta Pixel) reaches users on Facebook, Instagram, Messenger, and the Audience Network.

For eCommerce stores, running retargeting on both platforms typically produces the best results. Google captures users during active browsing and search behavior, while Facebook and Instagram reach users during social media sessions. Tools like Adwisely can automate retargeting across both Google and Meta from a single Shopify app, saving time and ensuring consistent audience targeting.

What Does Google Ads Retargeting Cost?

Google Ads retargeting costs vary based on your industry, competition, and audience size. On average, Display Network retargeting costs between $0.25 and $0.60 per click, which is significantly lower than standard Search ads. The cost per acquisition (CPA) for retargeting campaigns is also typically 50% to 75% lower than prospecting campaigns because you are reaching people who already know your brand.

For Shopify stores, a common starting budget for Google retargeting is $10 to $30 per day. As you gather performance data, you can scale up spending on the audience segments and ad formats that deliver the best ROAS. Many eCommerce businesses see a 4x to 10x return on their retargeting ad spend.

Frequently Asked Questions

What is the difference between retargeting and remarketing in Google Ads?

In practice, retargeting and remarketing mean the same thing in Google Ads. Google officially uses the term "remarketing" for its feature that shows ads to past website visitors. The term "retargeting" is more commonly used in the broader digital marketing industry. Both refer to the strategy of showing ads to people who have already interacted with your website or app.

How many visitors do I need to start Google Ads retargeting?

Google requires a minimum audience size of 100 active visitors within the last 30 days for Display Network remarketing and 1,000 active visitors for Search remarketing (RLSA). If your store is new or has low traffic, focus on building your visitor base through SEO and paid search before launching retargeting campaigns.

How long should I retarget visitors with Google Ads?

The optimal retargeting window depends on your product and sales cycle. For eCommerce, 14 to 30 days works well for most products. High-consideration purchases may benefit from 60 to 90 day windows. Monitor your conversion data to find the sweet spot where most retargeted visitors convert, and adjust your membership duration accordingly.

Can I use Google Ads retargeting with Shopify?

Yes. Shopify integrates with Google Ads through the Google & YouTube channel app for manual campaign management, or through automation apps like Adwisely that handle tag installation, product feed syncing, audience creation, and campaign optimization automatically. Adwisely creates retargeting campaigns across both Google and Facebook from a single dashboard.

An online advertising tactic where a business delivers their ad to the people that have previously been to the website, ideally with the same or similar product that a person has checked. Since there are very few people who make a purchase on the first visit, retargeting is a powerful way to convert website visitors into customers. The ad should be relevant, i.e. feature the very product that the user viewed before.

Advertisers use cookies and pixels to identify which online users have visited their website to target them in the ads later. For example, if you check out a pair of sneakers on a Nike website, but don't buy them, you will most probably see an ad for these sneakers someplace online.

Many marketers use the terms Remarketing and Retargeting interchangeably. For example, Remarketing on Google and Retargeting on Facebook are based on the same marketing principle — advertising products to the website visitors.

However, some marketers point out the difference between the terms. They claim that while Retargeting is about reaching out to potential customers that have seen your products with ads, Remarketing is the practice of reengaging already existing customers via emails.

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