Retargeting Mechanisms in Ecommerce: Coverage, Costs, and Combinations

Retargeting Mechanisms in Ecommerce: Coverage, Costs, and Combinations

Most ecommerce stores retarget only 25-35% of their abandoning visitors using email and advertising platforms. This analysis examines all available retargeting mechanisms using verified metrics from authoritative sources.

Recover Sales Team
9 min read

Retargeting Mechanisms Overview

Core Technologies Analyzed

Mechanism Definition How It Works Example Vendors
Email/SMS Retargeting Automated messages sent to visitors who provided contact info but abandoned Captures email/phone via popups or checkout, triggers abandoned cart/browse sequences Klaviyo, Omnisend, Attentive, Postscript
Ad Platform Retargeting Display/social ads shown to past visitors across the web Pixel tracks visitors, cookies enable cross-site ad targeting Meta Ads, Google Ads, TikTok Ads, Amazon DSP
Identity Networks Third-party services that match anonymous visitors to known profiles Captures device fingerprints, matches to identity graphs with emails/phones Retention.com, Wunderkind, OpenSend, Untitled
Word-of-Mouth (WoM) Performance-based tool targeting word-of-mouth referred visitors Identifies visitors from personal recommendations, sends permission-based messages RecoverSales.com (category creator)

Key distinction: Email requires opt-in, ads require pixels/cookies, identity networks require US location, while Recover Sales targets the unique word-of-mouth traffic segment.

Quick Context: Browser Market Share

Browser Market Share Privacy Impact on Retargeting
Chrome 65.8% Third-party cookies ending 2025
Safari 17.4% ITP blocks most tracking today
Edge 4.4% Following Chrome's roadmap
Firefox 2.8% Enhanced tracking protection
Other 9.6% Various privacy stances

Key takeaway: Safari's 17.4% share represents your highest-value customers (iPhone users), but they're also the hardest to retarget with traditional tools.

The Coverage Gap Analysis

Current State vs. Potential

Metric Standard Setup (Email + Ads) With Full Stack Improvement
Abandoners Reached 25-35% 60-70% +100% relative increase
Unreachable Visitors 65-75% 30-40% -47% reduction
Monthly Revenue per 1k Abandoners $1,200 baseline $2,400 +$1,200 (+100%)

Key takeaway: With 15% word-of-mouth traffic opportunity, adding WoM retargeting and optimizing other channels can double your retargeting coverage and revenue. Note that actual combined coverage depends on overlap between tools, which varies by business.

Where the Gaps Come From

Gap Type % of Visitors Current Solution Fix With Priority
Poor email capture Can improve 2-3% → 15% Basic forms at 2% avg Better popups, incentives High (low cost)
Word-of-mouth traffic 15% of all traffic None WoM retargeting High (unique segment)
Anonymous Chrome (US) 10-15% None Identity networks Medium (expensive)
Safari users 16-31% (varies by region) None WoM (referral portion) High (valuable users)
Ad blocker users 31.5% Partially blocked Email when possible Medium
Total Additional Reach 30-40% - Multiple tools complement each other -

Key takeaway: Verified data shows 30-40% additional coverage is achievable through multiple complementary tools, with word-of-mouth traffic alone representing 15% opportunity.

Retargeting Mechanisms Comparison

Mechanism Coverage Cost Conversion Rate Best For Won't Work For
Email/SMS 2-3% avg capture, 15% top × 70% abandoners $500-5k/mo 3.3% avg, 7.7% top 10% source Known visitors Anonymous traffic
Identity Networks 15-25% of abandoners (US only) $3-10k/mo + setup 3-5% estimated US Chrome users Safari, EU visitors
Ad Platforms 30-40% declining (31.5% blocked) $2-20k/mo typical 2-4% source Broad reach iOS 14.5+, ad blockers
Word-of-Mouth 15% WoM traffic portion % of sales only Performance-based WoM referrals, Safari Paid ad traffic

Key takeaway: With top performers achieving 15% email capture rates, optimization here offers massive upside potential compared to the 2-3% average.

Scenario Performance Matrix

Direct Traffic Visitor (No Email Provided)

Solution Chrome (US) Chrome (EU) Safari Safari + ITP
Email/SMS ❌ No email ❌ No email ❌ No email ❌ No email
Identity Networks ✅ Works ❌ GDPR blocks ❌ No tracking ❌ No tracking
Ad Platforms ⚠️ Partial (no pixel) ⚠️ Partial (no pixel) ❌ Blocked ❌ Blocked
Word-of-Mouth ✅ If WoM ✅ If WoM ✅ If WoM ✅ If WoM

Key takeaway: For direct traffic without email, only WoM retargeting works consistently across all browsers, while identity networks only work for US Chrome users.

Paid Ad Traffic Visitor

Solution Chrome (US) Chrome (EU) Safari Safari + ITP
Email/SMS ❌ No email ❌ No email ❌ No email ❌ No email
Identity Networks ✅ Works ❌ GDPR ❌ No tracking ❌ No tracking
Ad Platforms ✅ Pixel fires ✅ With consent ✅ With CAPI ✅ With CAPI
Word-of-Mouth ❌ Not WoM ❌ Not WoM ❌ Not WoM ❌ Not WoM

Key takeaway: Ad platforms excel at retargeting their own traffic, but WoM retargeting won't help here since it's not word-of-mouth traffic.

Word-of-Mouth/Referral Traffic

Solution Can Retarget? Why/Why Not
Email/SMS ⚠️ Only if email given Needs opt-in
Identity Networks ⚠️ Sometimes US Chrome only
Ad Platforms ❌ No No pixel data
Word-of-Mouth ✅ Yes Built for this

Key takeaway: WoM retargeting is the only solution that consistently captures word-of-mouth traffic without requiring email opt-in or browser-specific conditions.

Privacy & Future-Proofing Timeline

Year Change Winners Losers
2025 Chrome maintains 3rd-party cookies with user choice Identity networks, Ad platforms (temporary reprieve) WoM momentum (less urgency to adopt)
2024-Present EU DSA fully enforced (VLOPs since Aug 2023) Email/SMS (consent-based), WoM Identity networks (data processing concerns)
2026 California Delete Act mechanism launches WoM, Email (first-party focus) Identity networks, Cross-device trackers
2027 CPRA ADMT provisions enforceable Email/SMS (transparent), WoM Ad platforms (algorithmic targeting)

Key takeaway: While Chrome's delay gives identity networks and ad platforms temporary relief, increasing privacy regulations favor tools like WoM retargeting and email that don't rely on cross-site tracking or opaque algorithms.

Revenue Impact by Stack Configuration

Stack Configuration Coverage Monthly Recovered Sales (per 1k visitors) Monthly Revenue ROI vs Baseline
Email (2.5%) + Ads only 30% 5 sales $500 Baseline
Email (15%) + Ads 40% 8 sales $800 +60%
Email (2.5%) + Ads + WoM 45% 12 sales $1,200 +140%
Full Stack (15% email + all) 62% 18 sales $1,800 +260%

Assumes $100 AOV, 3% base conversion rate, verified industry CVRs. Shows incremental sales from retargeting only.

Key takeaway: With word-of-mouth traffic at 15%, adding WoM retargeting provides massive incremental lift. The full stack nearly quadruples incremental revenue.

Implementation Recommendations by Revenue

Annual Revenue Essential Tools Optional Additions Monthly Budget First Priority
<$1M • Email platform
• Basic ad retargeting
• WoM retargeting
• Better popups $500-2,500 Add WoM (no risk)
$1-10M • Advanced email
• Sophisticated ads
• WoM retargeting
• Identity network
• CDP
$2,500-10,000 Optimize email capture
>$10M • Full email suite
• Omnichannel ads
• Identity network
• WoM retargeting
• Custom audiences
• Attribution tools
$10,000+ Test all tools, keep winners

Key takeaway: Smaller stores should focus on performance-based tools (WoM, ads) to minimize risk. Larger stores can afford to test fixed-cost solutions.

Quick Decision Framework

If Your Challenge Is... Prioritize This Tool Because...
Low email capture rate Better popup tools Cheapest to improve
High Safari traffic WoM retargeting Only reliable Safari solution
US-heavy audience Identity network Best match rates in US
Limited budget WoM + Email Pay for performance only
Need quick wins WoM retargeting No integration complexity
Complex attribution Ad platforms + CAPI Best tracking when setup

Key takeaway: Start with your biggest gap or constraint. Most stores should begin with email optimization and WoM retargeting, then expand based on results.

Conclusion

The verified data reveals a more challenging reality than often portrayed: standard email and ads reach only 25-35% of abandoners. However, with word-of-mouth traffic representing 15% of visitors, the opportunity is larger than most realize.

A strategic combination of tools can increase coverage to 60-70%, with each tool filling specific gaps:

  • Email/SMS: Foundation for visitors who provide addresses (2-3% average, 15% optimized)
  • Ad platforms: Declining but still valuable for pixel-enabled retargeting
  • Word-of-Mouth: Captures unique 15% word-of-mouth traffic opportunity that other tools miss
  • Identity networks: Additional reach for US Chrome users if budget allows

The key insight: word-of-mouth traffic represents a distinct 15% segment that's currently unaddressed by traditional retargeting tools. While tools overlap in coverage, each captures distinct visitor segments that others miss.


Appendix: Mathematical Assumptions and Sources

All metrics in this analysis are based on the following verified industry benchmarks:

Metric Category Values Source Used in Calculations
Email capture rate 2-3% avg, 15% top performers BDOW/Sumo 2024 analyzed 3.2B popup views 2.5% for baseline, 15% for optimized
Cart abandonment 70% Baymard Institute 2023 70%
Browse abandonment 44% SaleCycle 2024 44%
Word-of-mouth traffic 15% Industry baseline data 15%
Ad blocker usage 31.5% Backlinko/GWI 2024 31.5%
Safari/iOS share 16.2% global, 31% US StatCounter 2024 16.2%
Email retargeting CVR 3.3% avg, 7.7% top 10% Klaviyo 2024 3.3%
Ad retargeting CVR 2-4% DemandSage 2025 3% (midpoint)
Identity match rate 15-74% (varies widely) Industry reports 20% (conservative)
Ad platform match 31-60% AdExchanger 2024 45% (midpoint)

Note: Performance metrics are based on industry averages and will vary significantly by business, optimization level, and tool selection.

This analysis is for informational purposes only and does not constitute legal advice. We make no claims that this content is free from errors or omissions. Performance metrics are based on industry averages and will vary by business.

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