Although site retargeting can be useful and is an excellent baby step towards your retargeting goals, it doesn’t present anything really custom-tailored to your audience and, therefore, doesn’t really utilize retargeting to its full potential. Dynamic retargeting takes things a step further by taking your traffic’s specific behavior into account.
Rather than just lump everyone who visits your site into one audience, dynamic retargeting reaches out to customers based on what specific products or pages they viewed. This way, you can ensure you are following users around the web with images of the specific product that they were interested in, rather than your brand in general. This makes things much more relevant for your audience and much more cost-effective for your business.
Dynamic retargeting can also be taken a few steps further. Rather than simply targeting visitors based on products they viewed, you can also target people based on whether they eventually bought the things they put in their shopping cart. This can encourage people to come back to your checkout page and finish what they started. Furthermore, targeting people based on what they DID buy allows you to advertise upsells and cross-sells that are relevant to their purchases.