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How to decide budget for remarketing campaigns?

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# 1
Visitor ✭ ✭ ✭

Hello,  I am new in Google Adwords and I have just launched my first display remarketing campaign.  


My only questions is, how can I find out what is the best budget to use for my remarketing campaign? 



1 Expert replyverified_user

How to decide budget for remarketing campaigns?

Top Contributor
# 2
Top Contributor

Hi @Kyriakos C,


Welcome to the Google Partners community. 


Since you are new to AdWords, it is advised that you start off slow with your budget and then revisit your AdWords account every 4-8 hours for the first several days and adjust budgets and settings accordingly. The system will actually make suggestions once you have some history. So for your first 7-10 days... consider it in the set-up and optimization phase and learn from the system as it learns from you. I would suggest starting off with $5-10 USD daily and see what happens from there. I like to ease in on my campaigns for the 7-10 days... then ramp up actions after that.


You should spend lots of time with Google AdWords Best Practices, and compare the information to your actual actions. As you come up with more questions and concerns, please stop back by and post them up here so that we can provide further assistance.


All the Best,



Google AdWords Top Contributor | Google Partner | GYBO | Local Guide | My Profile




Re: How to decide budget for remarketing campaigns?

Badged Google Partner
# 3
Badged Google Partner

Kryiakos C


Since this is display remarketing and tied to a list of prior visitors to you site, then there are several options depending upon how you segmented your list.


1) Generic list of all visitors

2) High priority visitors, from a If / then created rule.  ie, Converted a sale or Dropped off after adding to cart, or used the contact form, phone.  Or Downloaded something from your site etc.


The display network is usually the cheapest cost per clicks ( not always the best conversion performers, but with Remarketing can be very valuable.)  With the display being tied to remarketing, then these are potentially your most valuable people to engage with ( depending on how list was curated- sorted-added-used).


A rule of thumb I like to do about budgeting is to first determine my potential CPC.   So for this example lets say $1.00 is my bid price for a click for a display opportunity.  The next step is to determine if that Bid of $1.00 is getting any impressions, because remember you in an auction against other competitors for that space.  If you are not getting impressions then you need to ramp up that CPC bid.  I usually to save time in the procedure, start with a Higher Bid to make sure I am getting impressions, and then ramp downward if the CPC is to high ( so maybe a $5.00 MAX CPC - knowing I won't pay that much for the click most likely).  The amount of clicks you get would be relatively low, because it is only tied to the Amount of people on your list, as well an any frequency capping you may have applied.


Next step, the Daily budget.   Knowing that there are a finite number people that may see my AD, knowing that they are potentially my most valuable to engage with, knowing that display CTR's are typically extremely low ( ie 1-3% or lower) and that the user is not seeking my product ( ie searching for it), but happens to notice the AD on some website they are reading for other reasons ( potentially).  I ask myself how many clicks does it usually take for a conversion. On average it may take 10-20 clicks before I get a conversion from the landing page.   So 20 clicks = 1 conversion.  So How many conversions am I willing to pay for in a day?

20 Clicks  ( $5.00  MAX CPC)  = $100 budget. ( but more then likely that budget will never be hit, and only 2-5 clicks will occur on any given day ( depending on the size of the list, the product, cost of product, etc) but I am not cutting myself off from showing an ad to a potential remarketed client because I went way to low on my daily Budgets projections. 

Remember Set  CPC, Set budget, Check back many times during the day to see if impressions and clicks are happening as well as any conversions, and adjust to your comfort zone.


Now that may seem extremely High Budget to set. But more then likely you will not get 20 Clicks from your list on any given day unless the List size is phenomenally high, and your actual CPC even though bidding $5.00 will average out to about $1.78 CPC and the amount of impressions shown would not be that significant ( depending on the list) and CTR could be low because the user is not searching directly for your product or service, just that the AD is a Nudge Reminder for them.


Basically you want to have a high enough Budget in the group to make sure the User can see your Ad, and not be cut off because of lack of budget. So start With a Higher Bid and a Higher Budget to insure you are getting shown to the customers, and as @James_Clemens mentions, you should for the first 7 days really look at your campaign every few hours to check what's what.


At the end of the day, the amount you have to pay is just based on how many people click, but the Amount of Opportunities you get to show an Impression/AD  are based on your Set BID CPC amount and the Budget and Ad Schedule ( along with competition in that ad space auction).

( tip I run 24/7 for remarketing) but use tight schedules for more expensive Search or  Display campaigns


Hope that helps.