Dynamic Retargeting is retargeting that automatically customizes ads based on viewed products, pages, or behaviors.
It matters because most visitors do not convert on the first visit. Retargeting terminology helps teams create thoughtful follow-up sequences, avoid wasted impressions, and respect audience exclusions and privacy expectations.
Example
A catalog advertiser can use product identifiers from eligible browsing events to select relevant products for an ad. The event identifiers and product feed need to agree; mismatched IDs can prevent the intended product from being selected.