Remarketing is a technique that involves displaying targeted ads to users who have previously interacted with your website. Dynamic remarketing is a more advanced version that tailors ads based on the specific products and services that users have viewed or added to their cart. In this guide, we’ll walk you through the steps to set up and run a dynamic remarketing campaign for your business.
Dynamic remarketing can really help to boost ROAS and paid advertising efficiency. By showing personalised ads to users who have already shown an interest in your products or services, you can increase the chances of converting those users into paying customers.
Benefits of dynamic remarketing
Dynamic remarketing allows businesses to show personalised ads to users based on their previous browsing behaviour. This helps to create a more engaging and relevant advertising experience for users, which can increase the likelihood of conversion.
2. Increased conversion rates
Ads in dynamic remarketing campaigns are highly targeted and only shown to users who have previously interacted with your website. Dynamic remarketing campaigns have increased conversion rates compared to their traditional ad campaign counterparts.
3. Better ROI
ROI tends to be higher for dynamic remarketing campaigns compared with other advertising campaigns. This is because the ads are targeted to users who have already shown an interest in your products or services, so they’re more likely to convert.
Setting up dynamic remarketing campaigns
To get yourself set up, follow these five simple steps:
- Define your audience: who are you trying to target? What kind of behaviours can you segment on-site?
- Create and link your Google Ads and Google Analytics accounts. Dynamic remarketing is based on a user’s interaction with your website, so it’s essential that your Google Analytics and Google Ads accounts are properly linked up.
- Install the remarketing tag. Once you’ve created and linked your Google Ads and Google Analytics accounts, you’ll need to install the remarketing tag on your website – this is how Google tracks user behaviour for use in remarketing.
- The next step is to create remarketing lists based on user behaviour – some basic examples you can implement to start off with are; products viewed in the last 30 days, users adding products to basket, users reaching different checkout stages.
- Create a display remarketing campaign in Google Ads and select the option to make it “Dynamic” during setup.
Measuring the success of dynamic remarketing
To measure the success of your dynamic remarketing campaigns, you can use the following KPI’s:
- Click-through rate
- Conversion rate
- Return on ad spend
Click-through rate, or CTR, is really important when reviewing any level of ad performance – it shows exactly how engaged your users are with the ads you’re putting in front of them. The higher the CTR, the better your ads are performing.
The conversion rate measures the percentage of users who completed a desired action – such as making a purchase – after clicking on your ad. A higher conversion rate indicates that your ad is more effective in driving user actions. Some products will have much higher conversion rates than others, which isn’t an issue as long as you’re sticking to the ad level when reviewing conversion rates and taking into account ROAS and the amount of revenue being driven.
The ROAS measures the return on your advertising spend. A higher ROAS indicates that your advertising campaign is generating a positive return on investment. Keep an eye on your ROAS in order to gauge performance, and don’t forget to calculate your “break-even ROAS” – the minimum amount you need to reach to simply break-even on a product sale. If any ads are performing below this threshold, they need to be paused or amended to improve performance.
What are you waiting for?
Dynamic remarketing is a great way to up your advertising game and get more bang for your buck. By crafting personalised ads that speak to your users’ specific interests and behaviours, you can create a more engaging and memorable experience that’s more likely to lead to conversions. Although it may seem like a bit of a technical battle at first, setting up and measuring the success of your dynamic remarketing campaign is a learnable process that can reap huge rewards.
Get in touch with our Paid Media team if you need a hand with setting up.