Dynamic Remarketing: Powerful Tool to Increase Conversion and Reduce CPA

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By | Jun 20, 2016

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One of the most effective ways to target past website visitors is through the use of the dynamic remarketing technique. This method entails serving this category of consumers with tailor-fit ads on products or services which they might have shown an interest in while visiting your site in the past.

Dynamic remarketing offers an excellent solution for advertisers that offer a variety of products, sizes, models, or even destinations. Indeed, it is no surprise that a majority of top e-commerce websites today are employing this technique to cut their budgets in such an ingenious manner.

Unlike the standard remarketing which focuses on using “all visitors” and “group level ad copies”, dynamic remarketing relies more on users’ past behavior when determining what to display to the targeted market.

How Dynamic Remarketing Has Evolved Over the Past Few Years

At the end of 2014, Google began rolling out a new advertising model which was later to be referred to as dynamic remarketing. At the time, the model’s beta phase was only available for implementation by verticals such as classifieds, jobs, hotels, flights, finance, and auto.

It was not long before dynamic remarketing began attracting the attention of the general advertising community. From the resulting hype, e-commerce sites quickly began adopting the model for their advertising needs.

By the end of 2015, virtually every industry had embraced the model having already proved that it was capable of offering significant positive returns on ad spends and other forms of success. Currently, online retailers such as niche and run-of-the-mill enterprises comprise some of the biggest adopters of dynamic remarketing.

A few of the top e-commerce case studies that have proved the profitability of dynamic remarketing include Build Direct, Bebe, and Netshoes stores. All these stores were touted by Google. Besides, some of the pioneer advertisers who have since achieved significant success using this model include Sierra Trading Post, Hotel Urbano, and IndiaMART among others.

Quick Facts about Dynamic Remarketing 

  • Early adopters recorded up to 200 percent increase in conversions and about 60 percent reduction in the cost per acquisition (CPA) once they complemented their existing standard remarketing models with a dynamic remarketing campaign.
  • Dynamic remarketing also seems to have positively impacted mobile targeting since dynamic template ads are often mobile optimized. This helps to facilitate better viewing on smaller screens such as those of smartphones and tablets. As such, conversion volume for this market segment was seen to grow by over 15 percent.
  • When dynamic remarketing was employed during high seasons such as Christmas and Thanksgiving, advertisers recorded between 30-40 percent rises in overall revenues. The main reason cited for this trend was that these seasons often see an increase in impulsive online shopping activities.

Why Every Advertiser Needs To Employ Dynamic Remarketing

  • When targeting people that have visited your website before, it's easier to convince them to complete a transaction by displaying familiar images, specifications, price points, and any other closely-related promotional offers and inventories to them.
  • While it still might require one to have some skills when setting up a functional dynamic remarketing campaign, the strategy is still accessible enough to the small-scale businesses. This helps to reduce any competitive advantage that bigger franchises with lots of resources might have over smaller merchants.
  • With AdWords also providing an intuitive suite of templates, it becomes more convenient for advertisers to employ dynamic remarketing. This is because lesser bandwidth and efforts are required to host professional-looking banners on websites. Besides, these types of placeholders are capable of changing their contents systematically while also giving creatives control over the theme, fonts, and style used among other preferences.
  • You can also use real-time bid optimization tools such as Enhanced CPC and Conversion Optimizer to help you calculate Google’s optimal bid for each occasion.

What You Need To Get Started With Dynamic Remarketing

- Product/service feed

If you’re using AdWords, you will find this feed in the Business Data segment of your account’s Shared Library. However, retailers can manage the feed through a linked Merchant Center Account. The feed includes various attributes such as your unique ID, image, and price.

- Dynamics Ads

Using the AdWords ad gallery, you can easily create and customize dynamic ads that reflect your business’s themes and style fonts.

- Tag with Custom Parameters

This includes the different marketing lists which are capable of linking a site’s visitors to the unique IDs of the products they last viewed as well as the exact pages they visited. As such, you will need to add this tag to every page. To locate it, you will need to click on the “Audience” tab.

Why You Should Be Careful When Installing the Tag

If you find it uncomfortable to initiate changes to your website’s back-end or update custom variables, then it’s important for you to contact your developer for assistance. This is because a failure to set up the tag as needed can cause it to malfunction. Below are some of the key aspects you will need to identify within the tag;

  • Product page
  • Purchase page
  • Shopping cart page
  • General site visit

When installing a tag, it is also important that you use the JavaScript Object Notation format (JSON). However, if you’re not well-versed in the format, you may consider making changes to your existing remarketing tag to accommodate the new tag. Always ensure to separate parameters using commas.

To verify whether the changed setup will work correctly, use Google Tag Manager.

Remember that the only acceptable predefined parameters are those defined by Google. To learn more about this, visit Google Developers site for more information.


Dynamic remarketing might look like a complicated subject that can only be implemented by the more advanced and experienced advertisers. However, Google has done an excellent job in making this campaign type more accessible to all levels of advertisers. As such, do not get intimidated to try it out in your next advertising campaign. Nonetheless, it is vital that you enlighten yourself regarding the type of challenges to expect once you get involved in it. As such, research more online and take some time to study different kinds of literature created around the subject by experts and other resourceful entities. 

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