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Choosing the right budget and bid for your dynamic retargeting campaigns

24 Jul 2018

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In this article, we are going to discuss the right budget and bid for your online advertising campaigns.

There are a lot of different types of online ad campaigns, and all of them have their own particularities and may require different approaches when it comes to setting the right budget and bid.

To make things simple we will stick to the ad campaign types we specialize on in ROI Hunter Easy.

We’ll focus on how to choose the right budget and bid for your retargeting campaigns.

Let’s start off with the figure that bothers almost all first-time retargeters. What budget should you set?



For most programs and applications, you set a remarketing budget for one day, i.e. the amount of money the program can spend a day.

In reality, advertising platforms might spend more money a day to get the maximum result possible. But in the end, you will be only billed for the set amount multiplied by the days your ads were running.

You should remember that the budget influences the speed at which your campaign brings results rather than the effectiveness of the campaign (well, it does influence the effectiveness a little but not nearly as much as the bid we’ll talk about later).

To illustrate this, let’s take two retargeting campaigns with the same setting in one country. Let‘s set the budget of $50 for campaigns A and $25 for campaign B. Which one do you think will deliver faster?

The answer is campaign A.

Since the campaign B has half the budget, it will move at half the speed. If we set the budget for campaign B to $10 it will move 5 times slower than campaign A.

Simple, right?

Well, actually this is a major simplification. The productivity of retargeting campaigns is affected by a lot of different elements such as the quality score of the ads, the quality of the e-commerce site, the quality of the traffic, the traffic to the site, the niche of the e-commerce, the price of the ads, etc.

Have you noticed the information that the campaigns A and B from the example are from the same country?

Well, that is because the country is one of the aspects with the greatest influence on the size of your budget.

For example, the average CPC in e-commerce industry in the US is $0.45. But as the price level changes country by country, the average cost varies too.

Just as you pay a different price for Coca-Cola or beer in different countries, you pay a different amount for one click on your ad.

We’ve created a table with 50+ countries to help you see the differences in the average cost per click and the average price per action in different countries.

Obviously, the numbers are not very accurate. There are many other factors that influence the actual prices, and it’s impossible to take them all into account.

Many people can achieve lower costs with proper care while other might suffer higher costs if they run low-quality e-commerce. The numbers are meant to demonstrate to you how high the differences can be, so please take them as a rough estimate.



With bid, it’s a little bit more complicated.

The bid setting on your retargeting campaign highly influences how well the campaign can perform.

The decision-making process is quite difficult.

Easiest solution we can recommend is to use an app that is able to calculate the ideal bid with data-driven algorithms.

These algorithms, like the one used by ROI Hunter Easy, go through the enormous amount of data acquired from thousands of merchants all over the world.

With this kind of data, it’s possible to come up with precise bids that can be optimized even further according to the campaign data for the best possible result.

Data-driven algorithms are the best possible way to get you as close to the ideal bid as possible.

But maybe you’d like the challenge, or you just want to try.

So what should you do to come up with a good bid?

Well, the process is quite intricate because there are many unknowns.

The first thing you need to know is how much you are willing to pay for a sale.

Let’s say I’ll send one customer to your store. How much are you willing to pay me so that you can still keep the profit you want?

To find out the answer, you have to know a couple of things. How big is the average order/sale from your store? How much is the cost for that order? And how much profit do you want?

Then all you need is simple math to come up with your max bid. Just remember that we’re talking about the cost per conversion.


Well, that might be easy to find out for stores that have been running for some time. They have enough data to use for this kind of decision. But what about new stores that lack the necessary data?

Well, without using apps, they need to use the good old trial and error method.

Set up some base bid, and see how your campaigns are doing. If you get a few impressions, raise the bid. If you pay more than you like, lower your bid.

The manual setting of the bids takes up a lot of time even to professional marketers, so if you want to do it yourself, be prepared for hours of work on optimization.

Otherwise, I recommend using a retargeting app. It will save you a lot of time and work in the long run.


 CPC GDNCost per action GoogleCPC FacebookCost per action Facebook
United Arab Emirates$0.486$48.60$0.621$18.01
South Africa$0.216$21.60$0.276$8.00
Saudi Arabia$0.180$18.00$0.230$6.67

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