Dynamic Retargeting: All You Need To Know

Dynamic retargeting is the new buzz in the marketing town. So, if you’ve just heard about it and wondering, “Isn’t it just retargeting?” you’ll love how dynamic retargeting elevates retargeting to bring better results.

Let’s quickly tell you everything about dynamic ads in marketing and retargeting for more conversions.

But before we talk about dynamic retargeting, let’s quickly revise retargeting.

What is Retargeting?

Retargeting refers to showing ads to customers who showed interest on your website or social media. It allows you to remind your potential customer about their liking of your product, encouraging them to convert.

Studies show the click-through rate (CTR) of a retargeted ad is 10x higher than the CTR of a typical display ad.

Thus, retargeting significantly helps bring back customers who engaged with your product but did not convert.

Now, what if we tell you dynamic retargeting is even better?

What is Dynamic Retargeting?

Dynamic retargeting comprises ads customized to the interest of the potential customer. These ads have messages and images tailored to the specific user based on the products and services they viewed on your site.

Such precise targeting reminds the viewer of the product or service and brings them back to your website. It also converts abandoned carts by acting as a reminder for the purchase.

How does Dynamic Retargeting Work?

Dynamic ad remarketing not only works better but is also incredibly easy. You do not have to create a unique ad with different details for every campaign. Instead, Google automatically picks images to show to interested customers and chooses the ad placement.

Google Ads takes details from the optimized product feed you provide.

The ad layouts keep changing according to customer preferences and interests. Additionally, Google Ads shows only the products you add to the feed.

Static Vs. Dynamic Ads in Marketing

Statistics ads refer to ads that do not change themselves. These ads are displayed as created in the ad campaign.

On the other hand, dynamic ads change according to the customer, personalized to the specific viewer. Ads customized to users’ interests increase the chances of conversions.

  Pros Cons Best for
Static Ads Less time consuming Lack personalization B2B businesses
Low cost Lower conversions Creative control
Dynamic Ads Higher CTR Regular updating Large inventory
More conversions Expensive Unique customer choices

Benefits of Dynamic Ad Remarketing

Automated System

What’s better than not having to create multiple ad sets to cater to different customers?

Dynamic ads programmatic spare you the manual effort, allowing you to focus on other aspects of marketing such as affiliate and influencer marketing.

Advertising on Google Display Network

Remarketing allows you to reach users across Google Search, Gmail, and even YouTube. So, dynamic retargeting ensures you show the most suitable ads to potential customers.

Covers Large Inventory

You might not be able to create ads with all products in your inventory, but you can do that with dynamic ads; add all the products to your optimized feed and cover a massive inventory.

Brand Awareness

Besides pushing customers to buy products, dynamic retargeting helps you stay on your customer’s minds. Customers are more likely to remember your brand as they see your logo and ads multiple times.

Offers a Personalized Experience

While dynamic retargeting translates to creating ads that bring in more conversions, customers think of them as an added effort to display their favorite products. Thus, they create brand loyalty and improve engagement.

Customer Retention

When a customer has seen something on your social media or website and liked it, showing them the same product again is more likely to bring them back.

Lesser Abandoned Carts

Statistics show that almost 70% of shoppers abandon their carts, and many do that thinking, “I’ll buy it when I have some spare money.” Dynamic retargeting helps you remind them of the product and boost sales.

Better ROI

ROI is the main factor determining your campaign’s success, and dynamic ads in marketing do not disappoint. You will more likely get a better ROI through dynamic remarketing.

What You Need for Dynamic Retargeting?

Dynamic retargeting is easy, and you only need a few details at hand to run dynamic ads in marketing:

  • Responsive ads use multiple layouts in various sizes, including HTML5 for mobile devices
  • Optimized data feed provides Google Ads with the products you want to show to potential customers
  • A dynamic remarketing tag with custom parameters needs to be added to your web pages for dynamic marketing

How to Set up a Dynamic Ad Remarketing Campaign?

Step 1: Enable GA4 Features

Before you set up a dynamic retargeting campaign, enabling remarketing and advertising reporting features in GA4 is important. Once you turn on the features, connect your Analytics and Google Ads accounts if not already linked.

Step 2: Create an Optimized Feed

As you do not create ads for every campaign in dynamic retargeting, Google Ads require an optimized dynamic marketing feed to fetch the data from. You can manage it manually, use a feed management tool, or add extra elements to your Google Merchant Center feed.

Step 3: Add Remarketing Tag

Next, you must add a remarketing tag with custom parameters to your website to help Google understand user behavior for retargeting. The tag is placed on every page of your website. The tag identifies the custom parameter ID and shares it with Google to match it with the item ID in your optimized feed.

Step 4: Design Audiences

After adding remarketing tags, create audiences in Google Ads that share this information with Google Analytics. Here’s how you can create audiences for dynamic ads:

  • Go to Shared Library
  • Visit Audiences
  • Click on New Audience
  • Select Remarketing List
  • Add the audience details in the List Definition
  • Assign the audiences to specific ad groups for dynamics ads programmatic

Step 5: Set up Dynamic Ads in Marketing

Lastly, set up the ad and run it. Here’s how to do it:

  • Sign in to your Google Ads account
  • Choose Campaigns from the page menu
  • Click on the + sign and select New Campaign
  • Select the Campaign Goal (Sales)
  • Select Campaign Type (Display)
  • Now, paste your website link and name your campaign
  • Select bid strategy and add budget
  • Go to the Campaign Settings page
  • Choose More Settings
  • Open the Dynamic Ads part and select Use Dynamic Ads feed for personalized ads
  • Choose a business type
  • Find the Targeting section; select your options
  • Create your responsive display ads, and you’re done!

Google shows the base template and adjusts the layout to fit the images and product data in the space. Google uses cookies to determine if the potential customer matches the remarketing lists and shows them the dynamic ads programmatic.

How to Set up Dynamic Ads in Retail?

Here’s a brief introduction to creating dynamic retargeting ads with merchant center

  1. Set up a Google Ads account
  2. Add your products to the Google Merchant Center
  3. Put in the data layer
  4. Create a Google Ads Remarketing Tag in GTM
  5. Make the tag dynamic for dynamic retargeting
  6. Create a trigger in Google Tag Manager for your tag

Best Dynamic Retargeting Practices

Update the Feed Frequently

Your optimized product feed must always be up-to-date with the latest products and details to ensure your ads also show the latest products. Feed management tools can also help you manage your ad content.

Segment your Audience

You might wonder, “The ads are personalized; why do I need to segment the audience?”

Let’s say you ran an ad campaign for people who visited your website once, but what about cart abandoners?

Segmenting the audience will help you target a specific kind of audience with ads tailored to their needs more closely. Use your potential customers’ on-site behavior to categorize your audience and create multiple remarketing lists.

Select the Best Ad Placements

Google Ads allows you to choose ad placement, and you must leverage this feature to ensure your dynamic ads programmatic reaches the right audience. Exclude your ad from specific places where it might not be best-suited.

Use Numbers

Adding numbers and statistics to your ads offers a news-like look, and consumers mention that ads with news content increase brand trust. Surprising?

Similarly, you can add information in the form of numbers and percentages to catch your audience’s attention.

Focus on Copywriting

If you’ve been avoiding hiring a copywriter to save money, I’d say, “Don’t underestimate the power of a good copywriter!”

Create catchy CTAs that attract instantly and write short descriptions that provide all necessary details. It pushes customers to click on your dynamic ad CTA and convert.

A/B Testing

A/B testing is the backbone of successful ads on online advertising platforms, especially when you are new to it. Choose different layouts and run two dynamic ad campaigns to see which interests the audience more. It will help funnel down the layouts best for your business.

Don’t Overdo

We all want our target audience to see our ad, engage with it, and convert. But sometimes, brands tend to overdo it without realizing it.

So, make sure not to shove the ad in people’s faces across multiple marketing platforms, or it might annoy them; maintain a balance between too little and too many ads.

Ready to Bring Back Lost Customers?

Dynamic retargeting can be the best choice today if you are ready to bring back visitors and abandoned carts!

Prepare your optimized feed, run a dynamic ad campaign, and test multiple layouts to see what works best for you. Or get in touch with dynamic ad remarketing experts at Kubico for consultation.