If you’re stepping into the world of display advertising and thinking about how to re-engage visitors who didn’t convert, understanding what is the first step in display retargeting is key. In this guide I’ll walk you through that first step in detail, explain why it matters, and show real-world examples so you can apply it confidently.
What is Display Retargeting?
Before we answer what is the first step in display retargeting, let’s define display retargeting so you get clear context.
Display retargeting (also known as remarketing) is a digital advertising strategy where you show ads to people who have already visited your website (or taken some action) but did not complete a desired conversion (purchase, signup, etc.). By showing ads to them later, you nudge them back toward your site.
It uses display-ad networks (images, banners, rich media) rather than search-ads alone. It focuses on “warm” audiences, people who know your brand but haven’t yet taken action. Because of that, retargeting often gives higher conversion rates than cold-traffic campaigns.
Why Knowing the First Step in Display Retargeting Matters?
Picking the correct first step is critical because everything else depends on it. If you skip or do the first step poorly, your retargeting will have weak foundations: your audience might be wrong, your data might be bad, your ads might reach the wrong people, and you’ll waste budget.
So let’s zoom in: What is the first step in display retargeting?
In virtually all expert workflows, the first step is setting up tracking to capture the right audience. Without this tracking, you cannot identify who visited, what pages they visited, what actions they took (or didn’t take), and differentiate among them. So you cannot retarget.
In short: the first step in display retargeting is implementing the tracking mechanism on your site/app.
Tracking: The Foundation of your Retargeting Campaign
What Tracking Means?
Tracking means placing code (pixel, tag, script) on your site so that when a user visits, their behaviour is captured: which page they visited, how long they stayed, whether they added to cart, etc. That data is then passed to your ad-network so you can build audiences of visitors who did certain things (or didn’t).
How Tracking Works?
Imagine you run an e-commerce site selling handmade candles. You want to retarget people who visited a product page but did not buy.
- You install a tracking pixel or tag (for example on your site’s header) which triggers for every visitor.
- The pixel records “User A visited product-page / candle-X”.
- You configure the tag to note: “Visited product page, did not reach checkout success page”.
- Later you launch display ads to that specific segment: “People who viewed product candle-X but didn’t buy”.
Because of that tracking, you know who to retarget and with what (e.g., special discount, reminder).
Why is Truly the First Step?
- Without the tracking tag/pixel you cannot build the audience.
- Without an audience, you cannot serve retargeting ads.
- Without the proper audience, your ads may go to cold users (losing efficiency), or you may miss high-value users.
Hence, when someone asks what is the first step in display retargeting, the answer always leads to “set up tracking”.
Common Tracking Types
- Pixel for display network / ad platform (e.g., Google Tag Manager or platform’s proprietary).
- Event tracking (e.g., “add to cart”, “checkout abandoned”).
- Segmenting behaviour (visited page A, multiplied times, time on site > 30 s).
- Dynamic parameters (product IDs, value, category).
You’ll find your platform likely offers built-in support for this.
Step-by-step: Implementing the Tracking (First Step in Display Retargeting)
Here’s a detailed process you can follow:
Step 1: Choose your Ad / Display Platform
Decide where you will serve your display retargeting ads: Google Display Network, Facebook / Meta Audience Network, LinkedIn, programmatic DSP, etc. Each platform has its tracking tag/pixel mechanism.
Step 2: Generate the Tracking Pixel or Tag
Within the platform, locate the “Advertising > Tags” or “Pixel” section. For example in Google Ads you might create a remarketing tag. In Facebook Ads you use the “Meta Pixel”.
Step 3: Place the Tag/Pixel on your Website
- Ideally in the <head> of your site template so it fires on every page.
- Also include on key pages (product pages, checkout, thank you) if you need event-specific tracking.
- Use tools like Google Tag Manager to simplify insertion and management.
Step 4: Verify the Tag Works
After installation, test using browser extensions or platform diagnostics to ensure the pixel is firing and behaviour is captured.
Step 5: Define your Retargeting Segments
While technically this is just after the first step, anticipate the audience segments you’ll want (e.g., visited product but didn’t buy; abandoned cart; visited homepage only). This will inform what tracking you need to capture.
Step 6: (Optional but recommended) Exclude Converted Users
Make sure you track “thank you” or “conversion completed” page so you can exclude users who have already converted, so you don’t retarget them unnecessarily.
A Practical Scenario
Let’s take a small B2B SaaS company offering a free trial for their software. They wonder what is the first step in display retargeting to win back visitors who came to the pricing page but didn’t sign up.
- They install a ‘pricing_page_view’ event pixel.
- They mark the ‘trial_started’ page/URL to identify conversions.
- They create a segment: “Visited pricing > =1 time AND not hit trial_started page”.
- Then they launch display/banner ads exclusively to that audience, offering “Start your free trial today – limited-time bonus”.
Because of that initial tracking step, they target an audience that already showed strong intent (pricing page visitors) and exclude those who already started the trial, improving efficiency.
Common Pitfalls to Avoid When Implementing the First Step in Display Retargeting
- Not placing the tracking pixel on all relevant pages: If you only put it on the homepage, you’ll miss users who go directly to product pages.
- Not verifying the pixel fires correctly: If it’s broken, no data means no audience.
- Not tagging conversion/completed pages: Then you can’t exclude converted users.
- Using the wrong platform without tracking support: Make sure your ad network supports retargeting and the pixel is compatible.
- Not setting clear segment definitions early: Tracking alone isn’t enough; you need to know which behaviour you’ll use.
How Does This First Step Lead Into the Rest of your Retargeting Campaign?
Once you’ve done the tracking (the first step in display retargeting), you’re in position to:
- Build your audience segments (visited X but not Y)
- Create tailored ad creatives for each segment
- Set frequency caps and ad rotation strategy so you don’t fatigue users
- Choose budget / bid strategy based on how many users are in each segment
- Monitor metrics (click-through, conversion, cost per acquisition) and optimize
So the tracking step is your entry gateway. Without it, you cannot proceed to the rest of the campaign with confidence.
Why Some Marketers Get Tripped Up on the First Step in Display Retargeting
Because the term “first step” seems simple “just run your ads” but in reality, the fundamental step is behind-the-scenes: data collection, audience creation, tracking. Many skip or underinvest in that, then wonder why their retargeting fails to perform.
Choosing the right tracking setup is a strategic decision too: what actions to track, how to segment, how to exclude converted users. Hence, understanding upfront what is the first step in display retargeting helps you avoid simply “running ads” and hoping for the best.
Checklist: Verify you’ve Completed the First Step in Display Retargeting
Use this quick checklist:
- Tag/pixel placed on your website/app global header
- Key pages (product, pricing, checkout, thank you) have tracking
- You have verified the pixel fires (via tag assistant, diagnostics)
- You’ve defined which visitor behaviours you’ll use to segment audiences
- You’ve identified the conversion/completion page so you can exclude those users
If all the above are ticked, you’ve successfully handled the first step in display retargeting.
Final thoughts
When you ask “What is the first step in display retargeting?”, the correct and commonsense answer is: Implement your tracking mechanism so you can identify, segment and later retarget the relevant visitors. This may sound technical, but in practice it’s a manageable task and the foundation of a successful retargeting campaign.
By doing the first step well, you set the stage for more effective audience segmentation, ad messaging and budget allocation. You’ll spend less money serving irrelevant users, and more money reaching prospects who already know your brand.
Start with tracking, test it, segment smartly and you’ll be well on your way to display retargeting that really works.
Frequently Asked Questions
1. What tools can I use to set up tracking?
You can use tools like Google Tag Manager, Google Ads Remarketing Tag, or Meta Pixel (formerly Facebook Pixel) to easily add and manage tracking codes on your site.
2. Do I need a developer to install a tracking pixel?
Not always. Most ad platforms provide simple copy-paste code snippets or plugins that let you install tracking pixels without technical help.
3. How does tracking help in retargeting?
Tracking records user actions like visited pages or abandoned carts—so you can later show them personalized display ads that match their interests.
4. What mistakes should I avoid when setting up tracking?
Common ones include adding the pixel to only some pages, not testing if it fires correctly, or forgetting to track conversion pages.
5. Is display retargeting suitable for small businesses?
Yes, absolutely. Even with a modest budget, small businesses can benefit by re-engaging visitors who already showed interest in their products or services.
6. What should I do after setting up tracking?
Once tracking is live, start defining audience segments, create relevant ad creatives for each group, set budgets, and monitor performance for continuous improvement.
