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Determining Re-marketing share of budget

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

How would you determine what share of a marketing budget that should be allocated to re-marketing?

Say I want to invest 1000 £ in PPC and Remarketing, how much should by invested in remarketing. In other words, which factors should I be looking at?

Thank you for any replies!

Eivind

1 Expert replyverified_user

Re: Determining Re-marketing share of budget

Collaborator ✭ ☆ ☆
# 2
Collaborator ✭ ☆ ☆

Hi

Here is how I would do it, I am not entirely sure this is the best method to do this but I am sure this can at least point you in the right direction.

  1. I would calculate % of conversions from returning visitors where two of the channels in the funnel has been adwords.
  2.  So lets say you have total 100 conversions and and you calculate as above that you have 10 conversions from returning as described above.
  3. You have total clicks from adwords 500 and 2nd or more clicks amount to 100
  4. Then based on conversions you should put 10 % of your budget on remarketing and based on clicks you should put 20% of your budget on remarketing, to avoid complex calculations for start I would take a number between 10 and 20 which will be 15 % of your budget
  5. If you are currently not running any GDN campaigns then i would suggest for remarketing also you should go with GDN + RLSA

Hope this makes sense

 

Regards, Nik
LinkedIn  |   @nikhilparachure | My Blog

Re: Determining Re-marketing share of budget

Top Contributor
# 3
Top Contributor

Hi Eivind, welcome to the Community.  Is this your first AdWords Campaign and/or you have no data for this product/site/client?  If so, what comes below is relevant, if not, I'll have other things to say so please let me know!

 

Nik's advice is sound, but I'll take a slightly different approach.  I think you should spend all £1000 on marketing and £0 on remarketing.

 

The clue is in the term in my opinion.  Remarketing is all about pushing your product upon people who have already had some interaction with your site or your product that you can measure.  You could just remarket to people who have simply visited your site but is that a good move?  If someone has visited your site already and has decided not to buy, it could actually be quite annoying to be followed around the web by Ads from that company.  I know, it happens to me all the time and it actively puts me off wanting to return to those sites.  I much prefer to remarket only to people who have expressed a strong interest in the site or products; my ideal list is of people who got as far as putting one or more products into their basket, and got beyond the first stage of the checkout process.

 

More than this, I feel that remarketing sits on the foundation built by your primary advertising channels.  It is these that will inform you over time of your best Ads, highest performing products, necessary changes to your site, etc.  You want your site and Ads to be as good as they can be before remarketing begins.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Determining Re-marketing share of budget

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Thanks Nik!

I enjoyed the simple approach to estimating  how to divide your overall budget between the channels! I guess as soon as you measure the performance can shift budget from one channel to another as well.

cheers!

Re: Determining Re-marketing share of budget

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Thank you for the warm welcome Jon! I have managed Adword campaigns previously, but not been involved in allocating budget across channels before. So this information is highly valuable!

I am currently working on a proposal for a client, and do not have conversion data or any analytics other than publicly accessible, making it more difficult!

However, if I get my hands on their data, how can I  remarket only to customers that have accessed the shopping cart or other 'end of conversions steps'?


Re: Determining Re-marketing share of budget

Top Contributor
# 6
Top Contributor

Hi Elvind, you're most welcome.

 

It will depend upon what the client already has set up.  Within AdWords remarketing lists must be created and defined and, if AdWords is already running for the client, the list can populate with historical data.  If AdWords isn't running yet, you'll have to start from scratch, which is why I said the budget should be £0 Smiley Happy

 

If you get access to Analytics you might be more lucky but and be able to get some historical data to work with but my opinion still stands that if this is a new advertising campaign then all the available budget should be spent on the primary marketing, getting that working to the absolute best it can be.  By all means set up your remarketing lists as soon as you create the Account but I wouldn't put money into it while still working with a set budget.

 

Once you have the Account returning a net profit, and you have a set of Ads that you know work well for your products, and appropriate remarketing lists, then go ahead and spend some of that profit Smiley Happy

 

Remarketing can be as complex as primary marketing through AdWords so it's not to be taken lightly and if you're looking at a new client with no data I'd be inclined merely to include Remarketing as an opportunity for the future, rather than something you'll do from day #1.

 

Jon

 

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Determining Re-marketing share of budget

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

Thank you for a very helpful an insightful post Jon, it definitely made me look at remarketing from another angle.

I am currently working on several projects where some of them are regarding improvement of current Adwords campaigns and others involves building them from scratch. So considering remarketing where I actually have historical data makes sense!

Merci!