Google introduced the Dynamic remarketing feature a few months ago. The basic premise of dynamic remarketing, not just Google’s, is to retarget users based on the specific product that they have seen on the website.
How is this different from “non-dynamic” remarketing? Simply, dynamic remarketing alows advertisers to retarget users with individually tailored messaging. “Normal” remarketing shows the same message to all users, no customization and therefore, it’s not dynamic remarketing.
Dynamic remarketing can help you to reach your website visitors by displaying ads that are tailored to them using a custom message based on their position in the purchase funnel. To take full advantage of dynamic remarketing, you can use all the formats and ad sizes. This will increase your chances of your ads being displayed on all websites of the Google Display Network.
To create a dynamic remarketing campaign you need to have a Google Merchant Centre account. That’s something compulsory as AdWords uses the Merchant feed to know which products/pages users visited.
When setting up a remarketing campaign dynamics, the system automatically creates, in addition to the list “All visitors”, four lists for four groups of visitors on your site:
By default, visitors are listed in these lists for 30 days. Bids are optimized automatically (if you use the Conversion Optimizer) taking into account the time since the last visit of the user to your site. The system increases or decreases the bid in real time based on the projected estimated performance of the ad and adjusts the bid for each of the four lists individually.
These lists do not overlap. Therefore, visitors to your site will appear on one list at a time, depending on their position in the purchase funnel.