In this fast-paced digital era, the majority of visitors don’t convert on their initial visit to your site. That’s where Facebook Ads Retargeting is important. It enables you to reclaim interested buyers who didn’t convert. If you’re not utilizing a retargeting funnel, you’re leaving cash on the table.
In this guide, we’ll dissect the entire Facebook Retargeting Funnel, walk you through setting up campaigns in a step-by-step fashion, and provide powerful strategies to increase ROI in 2025.
What is Facebook Ads Retargeting?
Facebook retargeting is an online advertising tactic wherein you expose people who have already engaged with your brand—on your website, app, or social network. They are “warm audiences,” and retargeting keeps them considering your brand, ultimately nudging them toward conversion.
Why Retargeting Matters in 2025
80% of sales occur after 5+ interactions
Retargeting can make ad ROI up to 10x bigger
Facebook Pixel + Meta AI = Smarter targeting
Facebook Ads Retargeting Funnel Breakdown
To execute an effective retargeting strategy, you need to create a funnel with three primary stages:
Top of Funnel (ToF): Awareness
Audience: Cold traffic (individuals who are unaware of you yet)
Goal: Grab attention with value content
Ad Types: Video views, blog posts, lead magnets
Campaign Objective: Engagement, Traffic, or Video Views
➡️ These individuals will be put into custom audiences for retargeting down the line.
Middle of Funnel (MoF): Consideration
Audience: People who visited your website, engaged with your posts, or watched 25–50% of your videos
Goal: Build trust and educate
Ad Types: Testimonials, case studies, product demonstrations
Campaign Objective: Conversions or Lead Generation
➡️ Offer something valuable like a free trial, discount, or webinar to push them forward.
Bottom of Funnel (BoF): Conversion
Audience: Warm leads who added to cart, visited price pages, or completed part of a form
Goal: Close the sale
Ad Types: Scarcity ads, cart abandonment reminders, time-sensitive offers
Campaign Objective: Conversions or Sales
➡️ These ads should trigger urgency and emphasize value.
How to Set Up a Facebook Retargeting Campaign
Here’s an easy-to-follow step-by-step:
Step 1: Install Facebook Pixel
Go to Events Manager → Add Pixel
Put it on all pages of your site
Check it’s working with the Facebook Pixel Helper
Step 2: Build Custom Audiences
Website visitors (last 30–180 days)
Video views (25%, 50%, 75%)
Instagram/Facebook engagement
Add to cart but no purchase
Step 3: Build Lookalike Audiences (Optional)
Build 1%–5% lookalikes of your best-quality traffic
Step 4: Set Up Campaigns by Funnel Stage
Create separate campaigns/ad sets for each stage of the funnel so you can report performance separately.
Step 5: Use Dynamic Ads (Optional but Powerful)
Reveal products individuals looked at via catalog + pixel data.
High-Performance Retargeting Tactics
Try Video Ads First
Videos establish trust and develop high-performing retargeting audiences. Individuals who watch 50%+ are extremely engaged.
Segment by Intent
Treat a person who viewed a blog post differently than a person who placed a product in their cart.
Run Limited-Time Offers
Develop urgency via 48-hour offers or countdown timers.
Exclude Converters
Always remove those who already converted to save budget.
Test Creatives and Placements
Don’t try one ad and stop. Test images, carousels, and copy variations on Stories, Reels, and Feeds.
Example of Retargeting Funnel for an E-commerce Store
| Funnel Stage | Audience Type | Ad Type | CTA |
|---|---|---|---|
| Awareness (ToF) | Interest-based, Lookalike | Product intro video | Watch Now |
| Consideration (MoF) | Website visitors, video viewers | Social proof carousel | Learn More |
| Conversion (BoF) | Cart abandoners | Discount + urgency offer | Shop Now |
Pro Tips for 2025
Use Advantage+ Campaigns: Let Meta’s AI optimize delivery.
Prioritize Mobile-First Creatives: More than 95% of users access on mobile.
Blend Retargeting with Email Marketing: Leverage Facebook to pre-heat leads, and emails to seal sales.
