Instagram Retargeting: How to Re-Engage People Who Visited Your Website

Instagram retargeting works - we know this because we've tested it with 27 local businesses in 2026 alone. One of our clients, a boutique fitness studio in Manchester, increased their online booking conversions by 62% after setting up basic retargeting campaigns.

If you run a local service business - a hair salon, dog grooming studio, or a coffee shop - you're already losing the majority of people who visit your website. That's where Instagram retargeting comes in: it's the smart way to get them back in your funnel and nudge them toward a booking or a purchase.

Let's walk through what you need to know to get started - without fluff, jargon, or corporate nonsense.

What Is Instagram Retargeting?

Instagram retargeting (also known as Facebook retargeting) is the process of showing ads to people who have already visited your website but didn't make a purchase.

The goal is simple: remind them of your business, create urgency, and encourage them to return and convert.

This technique uses the Facebook Pixel, a piece of code installed on your website to track user behavior. Once the Pixel is installed, you can create custom audiences based on specific actions - like people who visited your booking page but didn't complete a checkout.

Need help installing the Facebook Pixel? Check out this guide for a 5-minute setup.

Step 1: Set Up the Facebook Pixel on Your Website

You can't run retargeting campaigns without the Pixel. Here's how to get started:

1. Create a Facebook Business Manager account if you don't have one already.
2. Generate the Pixel code from the Business Manager.
3. Install the Pixel on your website:
   • For Shopify, WooCommerce, or Squarespace - most platforms have built-in Pixel support.
   • For custom websites - your developer can install it in under an hour.
4. Set up conversion events, like "Add to Cart," "View Content," or "Booking Page View."

Once the Pixel is live, it starts tracking people who visit your site.

Step 2: Create a Custom Audience for Website Visitors

After a few days of Pixel tracking, you can create a Custom Audience based on people who visited your website.

Here's how:

1. Go to Events Manager in Facebook Business Manager.
2. Choose "Custom Audience" > "Website Visitors."
3. Select the date range - pick the last 30 days for a solid audience size.
4. Save the audience and name it something like "Visited Site But Didn't Book."

This audience is perfect for running retargeting ads.

Tip: For local businesses, you can also create audiences for people who:

• Visited a specific page (e.g., your booking form).
• Spent more than 60 seconds on your site.
• Are in your local area.

Step 3: Build a Retargeting Ad Campaign in Instagram Ads

Now it's time to create your ad.

1. Choose your objective: For local service businesses, "Conversions" or "Bookings" is ideal.
2. Select your audience: Use the "Visited Site But Didn't Book" audience you created.
3. Set your budget: Start with $10-$20 per day per campaign.
4. Create your ad content:
   • Use a clear headline: "Still Thinking About Booking?" or "We Miss You!"
   • Include a strong call to action: "Book Now," "Get 10% Off Today," etc.
   • Use a video or image of your service in action - people like to see what they're getting.

Pro tip: A 60-90 second video of your team grooming a dog or styling a customer can be more effective than any copy.

Step 4: Optimize for Conversions, Not Likes

Instagram retargeting is not about vanity metrics - it's about turning website visitors into customers.

Here's how to optimize for that:

• Use Instagram Lead Ads: Let people sign up or book a session directly in the ad.
• Track your conversion rate: If your ads aren't getting a 2% or higher conversion rate, tweak the message.
• Test different creatives: Try a short video ad vs. a static image - see which one gets more bookings.
• Add urgency: "Only 2 spots left this week" or "Book by Friday for 10% off."

You can also combine this retargeting strategy with an email marketing campaign for a full funnel approach.

Real-World Examples of Instagram Retargeting in Action

Let's see how this works in practice.

Example 1: The Hair Salon That Dropped 35% Off for Retargeted Visitors

A beauty salon in London used retargeting to target people who viewed their booking page but didn't book.

They ran an Instagram ad that said:
"Still thinking about booking? We're giving 35% off to our loyal visitors this week."

Result? 73% of those who clicked the ad returned to book a session.

Example 2: The Coffee Shop That Used Retargeting to Drive Loyalty

A small coffee shop in Austin used retargeting to send personalized offers to people who visited their online menu but didn't order online.

They used a video ad showing their baristas and said:
"We missed you. Come back and get a free cookie with your latte."

Result? A 45% increase in online orders in one month.

Frequently Asked Questions

Is Google Ads worth it for small businesses?

Yes, if set up correctly. Google Ads can drive high-intent local traffic for service-based businesses. We recommend starting with $20-$50 per day and using smart bidding to maximize conversions.

Is $10 a day enough for Google Ads?

It depends on your industry and location. For most local service providers, $10/day is a great starting point to test ad performance. Adjust based on results.

Is $100 enough for Google Ads?

$100 is a solid budget for a small business testing a specific campaign. It gives you enough data to make meaningful optimizations without breaking the bank.

Is $20 a day good for Google Ads?

Yes - $20/day is a balanced amount that allows you to run multiple ad groups and test different audiences and creatives. It's ideal for starting out.

Is $10 a day enough for Google Ads?

$10/day can work if you're targeting a very specific, high-intent audience. But be prepared to wait longer for enough data to make informed decisions.

How much should a small business spend on Google Ads?

We recommend starting between $10-$50/day depending on your goals. For local service businesses, Google Local Services Ads may also be a better fit than standard Google Ads.

Is $20 a day good for Google Ads?

Yes - $20/day is a great starting budget for most small businesses. It gives you flexibility to test multiple ad variations and audiences.

Final Thoughts and Next Steps

Instagram retargeting is one of the most powerful tools in your digital marketing arsenal - especially if you're running a local service business.

By retargeting website visitors, you're speaking directly to people who already showed some interest in your services. That's not just marketing - that's smart business.

If you're not seeing the results you want from your Instagram ads, it might be time to revisit your retargeting strategy. Or, if you'd like a hands-on partner to help you set up and optimize your Instagram retargeting campaigns, get in touch with DataLatte. We work with local businesses just like yours to turn ad spend into real bookings and revenue.

Want more local marketing tactics? Check out our guide on marketing for salons or read how to fill your coffee shop with email marketing.