In the world of online advertising, Google ads re-marketing adds a new touch to this growing world of marketing. Have you noticed that you are watching you tube videos and you see these ads which display say the products from the site you already visited, that is the Google ads re-marketing.

How does this re-marketing helps?

  • Helps in connecting with the audience which previously interacted with your website.
  • Helps in strategically positioning of your ads in front of the audience when they browse Google or Google partner websites
  • Increasing your brand awareness
  • Increasing conversion rates
  • Past site visitors who are familiar with the website will likely to become your customers

Re-marketing technique is a way to re-target your audience even when they leave your site, through these Google ads by displaying your re-marketing banner ads to the visitors you gain brand exposure plus become more recognizable and they are more likely to purchase from you.

Well once you have decided to opt for Google ads re-marketing then one of the most toughest challenge is budget planning. You budget depends on the company’s overall marketing budget and average value of sales.

For proper budget planning, we have to create a proper profit-driven budget strategy, To plan your budget:

1. Estimate Budget

The first step will include estimate budget, figure out the amount according to the company’s expectations that you’re comfortable with spending each month.

Using the Google Keyword Planner find out the cost per click estimates, find out the average amount Google will charge when your ad is clicked i.e. find the average cost per click.

2. How to use Google Keyword Planner to estimate CPC?

Put any product or service that you want to advertise on, then you will get some keywords ideas in return of your search term, you will come to know how many people search for each one (keyword) and how many other advertisers want to advertise those keywords and Ad Words bid.

You won’t know what is good for your business and what is not until you run campaigns on Google Ad words. There is always a chance that the campaigns might not be profitable.

  • Choose appropriate keywords for your test campaign , Google Keywords Planner information helps a lot in this process. If it is your first campaign then go for small number of keywords initially.
  • After selection of the keywords it’s time to determine how much to pay for each click on your site and Google also offers a few guidelines for selecting or determining bid.
  • So we know that the campaigns might not be that profitable so it becomes necessary to set a test budget so that we don’t spend a large amount of money running it.

So at least 100 clicks are required on each ad  to know whether if it converts well for the company. Like if you are planning to test ads for 10 keywords with an average CPC of $2 then you have to spend about $2000 on test ads.

3. Optimize the campaigns 

The campaigns provide a lot of data, the more experience you gain with Ad words, it will be helpful to optimize the campaigns  for best results. While examining your test campaigns and all the information there are three things or elements you should definitely focus on:

Click Through Rate (CTR)

Click Through Rates is one of the information displayed for each of the ads, it is done by dividing number of clicks each ad received by the total number of views. With the help of this we can know the keywords which had high bids to show to users and which ones were clicked and gives better idea which ones should we continue using in our campaign. CTR affects the quality score, this score is 1-10 that Google assigns to you account based on the ad performance. With high quality score there is a better chance you will have at getting your ads to your target customers.

Cost Per Conversion

If you are spending money on the clicks so you want to know how many clicks actually converted to customers and then revenue, looking at the percentage of people who converted after clicking each ad.

Suppose the campaign generated an average cost per conversion of $6 and average sale is $20 , then you get a proper return on investment but if your average sale is a few dollars, it will wind up costing your business. That is why keep ads with a cost per conversion lower than the sales and eliminate the ads with high cost per conversion.

If there are keywords with higher click through rate but lower conversions rates , then try to identify possible cause of lower conversions for example, if you are running an ad keyword for ‘high rise jeans for women’ it is a possibility that many people who are searching for this particular keyword have just started to search for jeans and they are not ready make a purchase immediately. But instead of using a keyword like this you can go for a specific brand of jeans which can lead to higher conversion rates . Even if your  keywords are perfect and the traffic generated is still not converting then look for other reasons like are the visitors able to locate and purchase the items they desire and optimize your page accordingly.

Add negative keywords

One of the most important step here is to add negative keywords received from the test ads based on non converting traffic. This will help your ads from showing up in search results for your unqualified keywords suppose you are a lawyer and running a campaign based on “legal consultations” then you don’t want to spend your advertising budget on users looking for free legal consultations because you are almost certain that they will not become clients but their click will cost as much as unless you use negative keywords to prevent your ads from displaying in their results.

4. Online marketing

After optimizing your campaigns  and regularly monitoring it you will see an increase in the ROI ( Return On Investment) over time. Almost all the businesses have a set marketing budget and plus setting a daily budget ensures that the you never spend a lot of amount or too much on that platform.

But if you have extra budget then spending it on Ad words can help in improving online marketing and obviously will help in generating more revenue for the business.

It is important to look at your overall marketing budget before deciding how much you want to spend on Ad Words specially if your company is already using a number of channels to reach their target audience. By determining the ROI of each marketing strategy and examining which channels are providing highest returns to the company.

Suppose if you know that online advertisement is providing highest profit and returns to your business then you can definitely invest more in Ad Words.

Re-marketing can be termed as an essential component of Google Ads, to determine your initial re-marketing budget simply calculate conversions percentage then allocating what percentage of your spend on re-marketing.

Suppose your online store of stationery garnered 1000 clicks and sold 100 items and 10 of it was purchased by returning visitors so by assigning almost ten percent of your search budget to re-marketing will help you in bringing those 900 non-converters back to your website. Google re-marketing ads are one of the most cost-effective ad campaigns available to all online advertisers.


Using Google re-marketing along with a combination of contextual targeting, filtering, conversion, the frequency can help in saving cost and keeping costs low. Enabling us to increase ad relevancy plus creating highly targeted marketing campaigns and showing ads to the people who have the tendency to click and convert.

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