How to Use Instagram’s Video Retargeting Feature to Re-Engage Past Viewers in 2025: Instagram Ad Strategy Update

In 2025, retargeting on Instagram has become an essential strategy for brands looking to re-engage Instagram users who have already interacted with their content. By leveraging custom audiences and lookalike audiences, businesses can target people who have already shown interest in their Instagram profile, posts, or ads. Whether you’re using Facebook Ads or Instagram’s built-in tools, the ability to create retargeting audiences allows you to reach users who have previously engaged with your videos.

With the power of Facebook and Instagram integration, advertisers can build highly refined audiences based on app activity, interactions with a post or ad, and even newsletter subscribers. This ensures that your ad campaigns are shown to people most likely to convert. In this Instagram advertising guide, we’ll cover best practices for audience creation, how to create a custom audience, and ways to optimize your audience size for better results.

If you’re new to audience targeting, don’t worry—this guide includes 2025 updates and a step-by-step approach to help you start by creating an effective Instagram remarketing audience. Let’s dive in and learn how to create Facebook and Instagram audiences that will maximize your ad ROI.

Understanding Instagram’s Video Retargeting Feature

How Retargeting Works on Instagram and Facebook

Retargeting on Instagram allows advertisers to reconnect with Instagram users who have already interacted with their content. By using Facebook Ads Manager, businesses can create custom audiences based on app activity, engagement with a post or ad, or even visits to their Instagram profile. This feature is powered by the Facebook Pixel, which tracks user interactions and helps advertisers refine their audience targeting strategies.

One of the biggest advantages of retargeting on Instagram is that it enables brands to target people who have already expressed interest in their content. Instead of running ads to a broad Instagram audience, you can focus on users who have previously engaged with your videos, making your campaigns more effective.

The Role of Custom Audiences in Retargeting

Custom audiences play a crucial role in any remarketing campaign. These audiences allow you to create specific groups of Instagram users based on their past behavior. For example, you can create a custom audience of people who:

• Engaged with any post or video within the last 30 days
• Visited your Instagram profile but didn’t take action
• Interacted with a Facebook Lead Ad but didn’t complete the form
• Watched at least 50% of your video ad

By refining your audience creation process, you can also build lookalike audiences—expanding your reach to people most similar to those who have already interacted with your brand. This helps you increase your audience size while still targeting high-quality leads.

Additionally, Facebook and Instagram allow you to use Facebook Saved Audiences, which include interests and demographics to further narrow your reach. The more precise your audience targeting works, the higher the chances of engagement and conversion.

I remember running an Instagram ad campaign for my e-commerce store, but the initial conversion rate was disappointing. Instead of scrapping the campaign, I decided to retarget the people who had watched at least 50% of my product video. I created a custom audience in Facebook and Instagram and launched a new video ad with a special discount. Within a week, my retargeting campaign doubled my return on ad spend (ROAS), proving that sometimes, the key isn’t reaching new customers—it’s re-engaging the right ones.

How to Create Retargeting Campaigns on Instagram

Setting Up a Custom Audience for Retargeting

To make a custom audience for retargeting on Instagram, you need to use Facebook Business Manager. This tool allows you to build audiences based on how Instagram users have interacted with your content. Follow these steps to get started:

1. Go to Facebook Ads Manager – Navigate to the Audiences Section in Facebook Business Manager.
2. Click on “Create Audience” – Select Custom Audience from the list of options.
3. Choose Your Source – For Instagram retargeting, select “Instagram Account” as your source.
4. Define Your Audience – Select engagement criteria, such as:
   • People who have engaged with any post or ad
   • Users who have previously watched your videos
   • Visitors to your Instagram profile
5. Set the Timeframe – Choose a duration (e.g., 30, 60, or 90 days) to determine how long users remain in your retargeting audience.
6. Name Your Audience and Save – Give it a clear name (e.g., “Instagram Video Viewers – 30 Days”) and click “Create”.

Once you’ve built a custom audience, you can start running targeted ad campaigns specifically designed for people who have already engaged with your content.

I once ran a retargeting campaign specifically for users who had engaged with my Instagram Stories ads but hadn’t visited my website. By launching a new ad with a clear CTA, I saw a 25% increase in website visits and a 15% lift in conversions. This taught me that small adjustments in retargeting on Instagram can have a major impact.

Using Facebook Saved Audiences vs. Lookalike Audiences

When setting up retargeting campaigns, you have different audience types to choose from:

• Facebook Saved Audiences – These audiences allow you to create groups based on interests and demographics, behaviors, and past interactions. This is a great option if you want to refine your target audience by adding additional filters, such as geographic area or app users.
• Lookalike Audiences – Instead of targeting people based solely on past engagement, lookalike audiences help you find people most similar to your existing customers. This type of audience is useful for expanding your reach while still maintaining relevance.

Both options can be used alongside retargeting pixels to ensure that your promotion reaches the right Instagram audience types at the right time. When done correctly, remarketing campaigns with well-structured custom audiences can significantly improve your ad campaign performance.

According to Insider Intelligence, Instagram’s ad revenue grew by 14.3% in 2023, with a major portion of that growth attributed to advanced retargeting strategies. Businesses that leverage custom audiences and lookalike audiences saw the biggest improvements in ad efficiency.

Best Practices for Re-Engaging Past Viewers

Choosing the Right Video Ad Formats for Retargeting

When setting up retargeting on Instagram, selecting the right video ad formats is crucial to re-engage users who have previously interacted with your content. Instagram offers several ad formats that work well for remarketing campaigns, including:

• Instagram Stories Ads – Full-screen vertical videos that blend seamlessly into users’ feeds. Great for targeting people interested in your brand with engaging, short-form content.
• Reels Ads – Perfect for reaching high-value customers who enjoy dynamic, entertaining video content.
• In-Feed Video Ads – Appear in users’ home feeds and are ideal for reminding them about products or services they’ve already viewed.
• Carousel Video Ads – Allow you to showcase multiple videos in one ad, which can be effective for highlighting different product features.

For maximum impact, keep your Instagram advertising guide in mind and test multiple formats to see which one resonates best with your audience based on engagement metrics.

Optimizing Your Instagram Audience for Maximum Engagement

To ensure your ad campaigns reach the right Instagram users, consider these best practices for audience optimization:

1. Segment Your Audiences – Instead of using one broad custom audience, break it down into more targeted segments, such as:
   • People who have engaged with any post or ad in the last 7 days
   • Users who have previously visited your Instagram profile but didn’t convert
   • Instagram followers who have watched at least 50% of a video
2. Use the Facebook Pixel – This helps you track app activity and refine your audience targeting works strategy over time.
3. Adjust Your Audience Size – A small niche audience may perform better than a broad one, especially when using Facebook Saved Audiences.
4. Test Different Audiences – Experiment with lookalike audiences and customer file audiences to see which generates the best engagement.
5. Retargeting Frequency – Avoid ad fatigue by controlling how often the same users see your ads to people who have already interacted with your brand.

By fine-tuning your audience creation strategy and leveraging Instagram and Facebook data, you can ensure that your promotion reaches the most relevant target users for higher conversion rates.

A 2023 report from WordStream found that retargeted ads are 70% more likely to convert than first-time exposure ads. This highlights how crucial retargeting is for increasing engagement and conversions.

Measuring the Success of Your Retargeting Ad Campaigns

Key Metrics to Track in Facebook Ads Manager

To ensure your retargeting on Instagram campaigns are effective, it’s essential to monitor key performance indicators (KPIs) in Facebook Ads Manager. These metrics help you understand whether your audience targeting works and if your ads are reaching the right Instagram users.

Here are the top metrics to track:

• Engagement Rate – Measures how many users who have previously engaged with your ad are interacting again.
• Click-Through Rate (CTR) – Shows how effective your ad is at driving target users to your website or landing page.
• Conversion Rate – Tracks how many Instagram users took a desired action, such as making a purchase or signing up.
• Cost Per Acquisition (CPA) – Helps determine how much you’re spending to convert a retargeting audience into customers.
• Audience Overlap – If your custom audiences and lookalike audiences have too much overlap, your campaign efficiency may decrease.

Adjusting Your Strategy Based on Performance Data

Once you analyze your ad campaigns data, you can optimize your remarketing campaigns by making the following adjustments:

1. Refine Your Audience Targeting – If engagement is low, consider adjusting your audience size or using Facebook Saved Audiences for better segmentation.
2. A/B Test Ad Creatives – Experiment with different post or ad formats, including carousel, Stories, and video ads.
3. Optimize Ad Frequency – If your Instagram audience types are seeing your ads too often, reduce the frequency to avoid ad fatigue.
4. Adjust Budget Allocation – Invest more in high-performing ad campaigns and pause underperforming ones.
5. Use Retargeting Pixels – Ensure that your Facebook Pixel is correctly tracking app activity to improve data accuracy.

By continuously refining your retargeting on Instagram strategy based on data insights, you’ll maximize your promotion ROI and ensure your ads reach people most similar to your most engaged customers.

How a Fashion Brand Boosted Sales by 35% Using Instagram Retargeting

A 2023 case study by AdEspresso analyzed how an online fashion retailer used retargeting on Instagram to increase conversions. The company initially ran broad Instagram ad campaigns but noticed a high drop-off rate before purchase.

By implementing a retargeting strategy, they:

• Created custom audiences of users who had visited product pages but didn’t buy.
• Used lookalike audiences to target new users similar to past buyers.
• Optimized their retargeting ads with urgency-driven messaging.

Results: The brand saw a 35% increase in sales and a 20% decrease in cost per acquisition (CPA). This case study proves that retargeting isn’t just about re-engagement—it’s a powerful way to drive actual sales.
🔗 Source: AdEspresso

Facebook and Instagram Integration for Better Retargeting Results

How Cross-Platform Retargeting Boosts Conversions

One of the most powerful aspects of retargeting on Instagram is its seamless integration with Facebook advertising. Since both platforms share the same ad infrastructure, you can create retargeting audiences that reach users across Facebook and Instagram simultaneously.

Benefits of cross-platform remarketing campaigns include:

• Expanded Reach – Target Instagram users who are also active on Facebook, increasing touchpoints.
• Higher Engagement – People interact differently on each platform, so you can adjust your ad campaigns accordingly.
• More Data for Optimization – Using Facebook Business Manager, you can analyze how your audiences let you target people more effectively across both platforms.
• Better Budget Efficiency – Instead of running separate campaigns, you can use one budget to optimize results across both platforms.

By leveraging lookalike audiences help, audience targeting works more effectively, allowing you to maximize your campaign performance.

Automating Retargeting Campaigns for Efficiency

For businesses looking to scale their Instagram advertising guide, automating retargeting on Instagram can save time while improving efficiency. Here’s how to streamline your strategy:

1. Set Up Dynamic Ads – These automatically adjust based on user behavior, ensuring that people who have engaged with your content see relevant promotions.
2. Use Automated Rules in Facebook Ads Manager – This allows you to pause underperforming ad campaigns and increase the budget for high-performing ones.
3. Retarget Based on Lifetime Value (LTV) – Build custom audiences using LTV data to prioritize high-value customers for better ROI.
4. Create Lookalike Audiences – Use lookalike audiences help to find people most similar to those who have already converted.
5. Schedule Retargeting Ads – Set specific timeframes for your promotion to ensure you’re reaching your target users at optimal moments.

By integrating Instagram and Facebook retargeting strategies and leveraging automation tools, you can efficiently target people who have already engaged with your brand while expanding your reach to new potential customers.

Conclusion

Mastering retargeting on Instagram is a game-changer for businesses looking to re-engage past viewers and drive conversions. By leveraging custom audiences, lookalike audiences, and Facebook Saved Audiences, you can target people who have already interacted with your content and turn them into loyal customers.

With the power of Facebook and Instagram integration, you can refine your audience targeting, automate your ad campaigns, and track key performance metrics to ensure success. Whether you’re using Instagram Stories Ads, Reels Ads, or carousel video ads, understanding your Instagram audience types and optimizing your promotion strategy is essential for increasing engagement.

As we move further into 2025, brands that create retargeting audiences based on app activity, interests and demographics, and lifetime value will have a significant competitive edge. By continuously testing and improving your remarketing campaigns, you can maximize your ad campaign ROI and drive long-term growth.

Now that you have the ultimate Instagram advertising guide, it’s time to apply these best practices and start seeing results from your retargeting strategy!

Frequently Asked Questions

Can I retarget IG users who engaged with my content but didn’t follow me?

Yes! Instagram’s custom audiences feature allows you to target the people who have engaged with your post or ad, even if they didn’t follow your account. You can also create saved audiences based on users who liked, commented, or watched your videos but didn’t take further action.

How does Instagram’s retargeting feature differ from Facebook’s?

While both platforms allow retargeting, Instagram places more emphasis on visual engagement. Instagram uses data from Stories, Reels, and profile interactions, whereas Facebook fans can be targeted based on likes, shares, and link clicks. The key is choosing the right category of targeting for your audience.

What’s the best way to use lookalike audiences for retargeting?

To use lookalike audiences effectively, first create a custom audience of users who have interacted with your brand. Then, Instagram will let Facebook know to find actual Facebook users with similar behaviors. This expands your reach while still focusing on high-intent users.

How do I make sure my retargeting ads aren’t too broad?

To narrow your audience, avoid using the default targeting option and instead refine it by engagement type, time frame, and demographics. Unlike broad targeting, audience type allows you to be more specific, ensuring your ads reach users most interested in your product.

Where can I learn more about advanced Instagram audience targeting?

If you want to know everything about Instagram audience targeting, check this guide in Facebook and Instagram Business Manager. It explains how to create audiences based on engagement, content on Facebook, and even interests that are unlike precise interests targeting.

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