Dynamic remarketing is a marketing strategy that allows you to show ads for your business to visitors who just left your website. With dynamic remarketing, you can advertise your products or services to these potential customers and remind them about their experience with them. By adding the right strategic elements to your marketing plan, you can ensure a constant traffic flow toward your business.
This guide is going to walk you through everything you need to know when it comes to dynamic remarketing, including how it works, why you need it, why it works so well, how you can get started easily, and how you can skyrocket your conversion rates using this simple marketing strategy!
Regardless of your advertising budget, you should think about running dynamic remarketing ads because it is highly profitable.
The appropriate setup of your Google Tag is required for dynamic remarketing to function.
The Google Merchant Center’s product ID format and the Google Tag settings should be compatible.
Don’t be overaggressive with your campaigns because visitors don’t like to be overly advertised.
Let’s dive in.
What Is Dynamic Remarketing? How Does It Work?
Dynamic remarketing is a form of online advertising that allows businesses to show personalized ads to potential customers who have previously visited their website or used their app. These ads are designed to be more relevant to the individual user, as they are based on the specific products or pages that the user viewed during their previous visit.
Dynamic remarketing ads can be displayed on various platforms, including Google and Facebook.
Google dynamic remarketing enables you to show ads to visitors on the Google Display Network and Google Search Network, using data from the Google Ads and Google Analytics tools.
Facebook dynamic remarketing allows you to promote your most relevant products to users on the Facebook platform using data from the Facebook Ads Manager platform. Simply you can add your catalog; then, Facebook will track users’ behaviors on your store using the Facebook pixel.
To set up dynamic remarketing, you need to place a piece of code called a “remarketing tag” on your website or app. With this tag, you can track the actions of users who visit your website or use your app and to create a list of those users based on their interests and behaviors. Then you can use this list to target specific ads to these users when they visit other websites or apps within the Google or Facebook networks.
For example, if a user visits your website and views a specific product page, you could later show that user an ad for that product when they visit another website. This can be an effective way to remind potential customers about the products they were interested in and encourage them to make a purchase.
What Is The Difference Between Standard And Dynamic Remarketing?
In standard remarketing, you can show ads to users who have previously visited your website. These ads can also be displayed on various platforms, including Google and Facebook. However, the ads that are shown to these users are NOT personalized to the specific products or pages.
On the other hand, dynamic remarketing is a more advanced form of standard remarketing that allows creating more specific and personalized ads to users based on the particular products or pages that the user viewed during their previous visit. These ads can convert potential customers into actual customers because they are more targeted.
Get Started with Dynamic Remarketing in Google Ads
Get prepared with the most important steps before creating a dynamic remarketing campaign:
1. Set up Google Analytics: If you want to use comprehensive data, we suggest GA4 which enables remarketing features that allows you to create audiences. Analytics captures additional information about users, and your tags will be updated with vertical attributes. Make sure your Analytics account is linked to your Ads account in order to see all customer actions.
2. Create a remarketing feed: You will need remarketing data before running your campaign. Add all the details about each product or service like your feed in Google Merchant Center.
You have two choices:
If you are a retailer, upload your remarketing feed via Merchant Center linked with your Ads.
If you are NOT a retailer, add your feed directly to Google Ads.
3. Add dynamic remarketing tag: You can enable remarketing tag with custom parameters (they are also called dynamic attributes). So, this tag associates visitors with unique IDs of items they looked at. The dynamic remarketing tag should be placed on each page of your website that you want to track.
4. Create dynamic remarketing audiences in Google Ads: Now, you can create your audience in Ads as your tags are assigned the attributes and data are sent to GA4.
To create an audience: Go to your Ads account and navigate Shared Library > Audiences. Click on “New audience” from the dropdown menu. Select “Remarketing list.” Then you can match the created audiences to specific ad groups. We recommend using Google Tag Manager to tag your whole site while creating remarketing lists.
You’re almost finished with the preparation!
5. Set up dynamic remarketing ads (responsive display ads): Finally, you need to configure these ads. Google has different templates in multiple formats and sizes for dynamic remarketing ads. Asset-based (extension-based) display ads automatically adjust their format and appearance. Learn more about responsive display ads on Google’s page.
Benefits Of Dynamic Remarketing Ads
There are numerous advantages you can take from using a dynamic remarketing campaign, but here is a list of the most important ones:
Better customer retention with personalized advertising: As mentioned earlier, these ads are totally personalized and targeted to individuals. You can attract the attention of customers who have seen your brand before and make them remember you. When online shoppers see you again, they will take less time to decide to shop and are likely to complete a purchase. Dynamic remarketing is exactly the way you should try to get loyal customers.
Increase brand awareness: Dynamic remarketing ads can also help increase brand awareness by showing ads to previous users. This can help increase the likelihood that users will remember your business and consider it when making a purchase. You can also offer different products and make customers discover them.
Improve your ROI: Dynamic remarketing can result in a higher return on investment (ROI) and conversion rates compared to other types of advertising. By highlighting special offers or features, your ads’ impressions and clicks will increase.
Reduce cart abandonment: Dynamic remarketing allows you to get visitors back to finalize their purchase. Cart abandonment is a serious issue for ecommerce businesses, and you can decrease the abandonment rate by reminding users of the products they left behind. Actually, customers already intend to buy; you just need to ping them with the right content.
Collect data automatically and measure results easily: When you have an optimized product feed, including product IDs, images, titles, links, etc., Google Ads will do all the work based on your data. It doesn’t require any additional effort. Also, ads content will change naturally depending on particular products and engaged customers.
Why You Need to Be Using Dynamic Remarketing Ads?
There are several reasons why you should use dynamic remarketing ads. Once you have a dynamic shopping campaign and proper structure, this strategic marketing will make a great impact on your sales and metrics. Google Ads decides the best performance layouts and where the ads will appear. It also prevents human errors.
In general, dynamic remarketing ads bring high click-through rates (CTR), and it results in raising your quality scores. Keep in mind that quality score is so important because it shows how relevant your ads are to the search terms. In summary, you will be able to automate data feed management and speed up the entering of new categories, attributes, and other product information.
How To Set Up A Dynamic Remarketing Campaign?
Note that before you set up dynamic remarketing in Google Ads, you will need to have the Google Ads remarketing tag applied on your website. This tag allows Google Ads to monitor the actions of users on your website and use that information to target them with relevant ads. You can find instructions for implementing the Google Ads remarketing tag on the Google Ads Help Center.
To set up dynamic remarketing in Google Ads, follow this guide step-by-step:
Sign in to your Google Ads account and navigate to the “Campaigns” tab.
Click on the “+” button to create a New campaign.
Select your objective. For example, we chose Sales here.
Select “Display” as your campaign type.
Enter your URL and campaign name.
Additional settings: Follow the prompts to complete the campaign setup process, including selecting your business type, setting your budget and bid strategy, and choosing your targeting options, language, etc. You can click “More settings” on the Campaign settings page.
Expand the “Dynamic ads” section, then check the box “Use dynamic ads feed for personalized ads.” In this step, you need to select a data feed or business type.
Lastly, review your campaign details and click on “Create campaign” to launch your dynamic remarketing ads for display.
Your campaign is created!
Tip: If you already have dynamic remarketing for the web, you can use it for app users.
How Much Does Dynamic Remarketing Cost?
The cost of dynamic remarketing depends on a variety of factors, including the advertising platform you use, the targeting options you choose, the competition for the ad space, and the overall budget you set for your advertising campaign.
The average cost ranges from $0.66 to $1.23 per click on remarketing. Note that this is moderate, and you may pay more or less for every click. To compare, the average cost-per-click (CPC) is $1 to $2 for display and search ads.
To get a better idea of the potential cost of dynamic remarketing for your business, you may want to consider researching the pricing options offered by different ad platforms and testing with different budget levels and targeting options to see what works best for you. Keep in mind that it’s important to regularly monitor and adjust your advertising budget as needed.
Here are several factors that can affect the cost of dynamic remarketing:
Advertising platform: Different platforms have different pricing models and may offer additional features and targeting options, which can affect the overall cost of your dynamic remarketing campaign.
Targeting options: In general, the more specific your targeting options, the more expensive your dynamic remarketing campaign may be. For example, targeting a specific location may cost more than targeting a wider audience.
Competition for ads space: The cost of dynamic remarketing can also be affected by the level of competition for ad space. If there are many businesses competing for the same ad space, the cost will increase.
Bid and budget strategy: The overall budget you set for your dynamic remarketing campaign can also influence the cost. A higher budget may allow you to target a larger audience or bid more aggressively for ad space, which can increase the cost of your campaign.
Quality of your ads: Ads that are well-designed and relevant to the audience may be more cost-effective than irrelevant ads. Likewise, a good landing page experience can reduce the cost per click.
To determine the best approach for your business, it may be helpful to try different targeting options and budget levels.
8 Tips For Creating A Successful Dynamic Remarketing Campaign
Here are eight specific tips for achieving the goals of a dynamic remarketing campaign:
Use specific and relevant ad copy: Make sure the ad copy used in your dynamic remarketing campaigns is specific and relevant to the products or services that the user viewed on your website.
Segment your audience: If you segment your audience volume based on the actions they took, you can create more targeted ads at the right time.
Utilize retargeting lists: Retargeting lists allow you to show ads to specific groups of people who have taken certain actions on your website or app. Basically, you can have existing customers’ contact information in your database.
Use frequency caps: Frequency caps allow you to limit the number of times an ad is shown to a specific user. This can prevent annoying users. To use frequency capping for dynamic remarketing, you need to specify the maximum number of times you want to show an ad to a specific user per day, week, or month. To set up frequency capping in your ads account, you can go to the “Campaign Settings” and select the “Frequency capping” option.
For example, if you find that ads don’t appear often enough, you may want to increase the frequency cap. On the other hand, if you see ads that are not performing well, you can decrease the frequency cap. Note that frequency capping is applied at the campaign level, so you will need to set it up for each campaign that you want to use it for.
Test different ad formats: Try testing different ad copies to see which ones perform the best. First, duplicate one of your ad groups with the same audience and bids. Second, just change your ad format.
Utilize cross-device targeting: Use across devices, which can be particularly practical for businesses with a mobile presence.
Focus on your top-selling products: Prioritize your popular products and make people browse them. You can use the filter option and add a “dynamic label” when creating your campaign.
Use conversion tracking: Use conversion tracking to measure your dynamic remarketing campaigns and determine which ones are driving the most conversions. This can help you optimize retargeting customers over time.
In conclusion, dynamic remarketing in Google Ads is a valuable tool for ecommerce businesses looking to increase their conversions and impressions. By creating thousands of targeted ads for each product or service, you can effectively reach a highly relevant audience and drive more sales. So if you’re looking to maximize the return on your digital advertising efforts, consider incorporating dynamic remarketing into your strategy.
I'm a co-founder of Analyzify and a seasoned digital marketing expert with over 13 years of experience. Passionate about helping Shopify merchants navigate data and marketing challenges.