Do Retargeting Ads Still Work in 2025?

Digital privacy rules, cookie deprecation drama and changing user expectations have upended the classic “follow-them-everywhere” playbook, but retargeting ads are still converting. The secret is to lean on first-party data, right-sized frequency caps and the smartest Facebook tools Meta provides. Read on to see how retargeting fits into a modern growth stack and what you must update to keep return on ad spend in the green.

1 What’s Changed Since 2020?

Marketers first need context before tweaking campaigns. A quick recap of the forces at play:

• Third-party cookies keep slipping toward extinction. Google postponed its phase-out again in April 2025, yet every major browser already throttles cross-site tracking.

• Mobile signal loss is undeniable. Apple’s App Tracking Transparency (ATT) shrank opt-in pools; Android’s Privacy Sandbox arrives next quarter.

• Audiences demand relevance over repetition. Meta’s Delivery Insights now surfaces ad-fatigue warnings faster than ever.

Despite these headwinds, recent benchmarks still show a median 3.8 percent conversion rate for retargeting — more than double typical cold campaigns. That proves precision, not abundance, drives results.

Takeaway: Privacy clamps down on lazy mass targeting, not on well-timed, high-intent touchpoints.

If you're new to retargeting or want a refresher, here's a practical tutorial on how to set up Facebook retargeting from start to finish.

2 Why Retargeting Still Matters in 2025

Even skeptics admit that warm prospects remain a gold mine. The table below shows why retargeting can thrive if you modernise execution:

Those edges matter when acquisition costs are rising everywhere. An audit of 60 e-commerce ad accounts revealed ROAS 2.3× higher for retargeted users than for cold audiences.

3 A 2025-Ready Retargeting Playbook

Modernising retargeting takes three layers: data, targeting and creative.

3.1 Build Durable Audience Pools

Your campaigns are only as strong as the data powering them:

1. Move pixel events to server-side tracking via the Conversions API, this shields attribution from browser blocks.

2. Upload CRM or Shopify lists so Meta can match emails or phone numbers, forming custom audiences immune to cookie loss.

3. Seed smarter lookalikes by exporting only high-value purchasers, then build a lookalike audience that mirrors their lifetime value profile.

Treat these lists as living assets: refresh weekly to avoid stale segments.

Need help deciding which audience type to prioritize? Here’s a full comparison of Custom vs Lookalike Audiences and when each works best.

3.2 Use Modern Facebook Ad Targeting Options

With solid data, let Facebook’s latest tools do the heavy lifting:

• Engagement Custom Audiences for video viewers, lead-form openers and Instagram Shop browsers.

• Facebook Audience Network placements to extend reach in mobile apps without new creative work.

• Advantage+ Shopping Campaigns, where Meta’s AI auto-allocates budget across placements — ideal for lean teams who still crave scale.

Three modern Facebook targeting options — Custom Audiences, Audience Network, and Advantage+ — designed to improve retargeting accuracy and campaign efficiency in 2025.

These options replace the scatter-shot interest stacks of yesteryear and line up with privacy guidance.

For a full breakdown of how Facebook’s targeting layers work and when to use each, check out our Facebook Ad Targeting 101 guide.

3.3 Craft Creative That Feels Personal

Dynamic Product Ads remain the backbone, yet 2025 winners add storytelling layers:

• Story-first formats featuring honest UGC or reviews stop the scroll.

• Price-drop or “back-in-stock” overlays for cart-abandoners lift CTR by about 30 percent in A/B tests.

• Sequential storytelling — carousel → reel → collection — guides users down the funnel without feeling repetitive.

Remember, Meta now penalises dull repetition. Swap hooks every seven days to stay fresh.

4 Measurement and Frequency Guardrails

Great targeting means nothing if you overspend. Use these benchmarks as starting points:

Frequency above eight impressions per user per week usually bleeds budget; Meta’s Delivery Insights flags this automatically, but a weekly manual spot-check is wise.

If your ads are hitting fatigue fast, this guide on how to fix Facebook ad fatigue shows you what early signs to watch for and what to tweak.

Quick audit tip: If ROAS dips yet frequency climbs, pause your longest-running ad and introduce a fresh hook immediately.

5 The Road Ahead

Retargeting isn’t set-and-forget; stay alert to fast-moving policy and product updates:

• Cookie deprecation drama will continue. Keep server-side setups humming so you’re ready once Chrome finally pulls the plug.

• Meta is merging contextual and commerce data, pairing on-platform shopping behaviour with your custom lists to keep targeting sharp.

• As signal loss accelerates, creative becomes the new targeting — thumb-stopping stories will beat data depth every time.

With new privacy changes still unfolding, make sure your strategy aligns with the latest Facebook Ads targeting updates for 2025.

Build a bank of evergreen creatives now; when policies shift overnight, you’ll deploy without panic.

Bottom Line

Retargeting in 2025 works better than ever when you:

1. Collect and respect first-party data

2. Treat campaigns as relationship-builders, not stalkers

3. Pair Meta’s evolving targeting suite with authentic, valuable storytelling

Master those pillars and you’ll find retargeting ads not only surviving but driving some of your highest-margin conversions in a privacy-first world.