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Google Display ads and remarketing, used where they earn their place

Google Display ads are image and video adverts shown on websites, apps, YouTube and Gmail. Remarketing shows such ads to people who have already visited your site. Display builds awareness; remarketing brings back people who hesitated. Both pay off only when tracking is sound, the offer is clear and visitors have given consent.

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What Google Display ads are

Display ads do not appear in search results. They appear where people read, watch and scroll: news sites, blogs, apps, YouTube and Gmail, together known as the Google Display Network. The essential difference from search is that nobody is asking for your product at that moment. You are interrupting. That makes display useful for visibility and repetition, and weak as a substitute for search campaigns.

Ad formats and sizes

  • Responsive display ads. You supply headlines, descriptions, landscape and square images and your logo; Google assembles ads in every shape and size from them. This is the default; see Google's guide to responsive display ads.
  • Uploaded banners. Your own designs in fixed sizes such as 300 × 250, 728 × 90, 300 × 600 and 320 × 50 for mobile. More design control, less reach per size and more production work.

Display is moving into Demand Gen

Google is moving Display campaigns into the Demand Gen campaign type. According to Google's Demand Gen overview, eligible advertisers could start migrating existing campaigns voluntarily from June 2026, with automatic migration and Demand Gen-only creation to follow. If you run display today, plan the move rather than waiting for it.

How remarketing works in Google Ads

Remarketing, also called retargeting, shows ads to people who have already interacted with you. Most visitors leave without enquiring or buying; remarketing gives you a second chance with exactly that group. The lists it uses are now called data segments.

  • Website visitors. The Google tag on your site fills segments such as all visitors, visitors to a particular service page, or people who started a quote form but did not finish. You choose how long people stay in each segment.
  • Customer lists. With Customer Match you upload hashed email addresses or phone numbers of existing customers. You need a lawful basis to use that data this way and must meet Google's Customer Match policy.
  • YouTube and app users. People who watched your videos or used your app.

A segment must reach a minimum size before Google will serve ads to it, and the threshold varies by network. On smaller sites, narrow segments may never become usable.

Remarketing in search campaigns

Remarketing is not only banners. You can add data segments to search campaigns to bid more for past visitors who search again, or to use broader keywords only for them. For service businesses this is often the most valuable form of remarketing: the same person searching again a week later is a strong signal.

Dynamic remarketing: showing the products someone viewed

With dynamic remarketing, a visitor sees ads featuring the exact products or services they viewed, plus similar items. For online shops it is usually the form of display with the clearest return. Two things are required:

  • A feed. For retailers that is the product feed in Merchant Center; other sectors, such as travel, property or education, can use a business data feed.
  • Events with product IDs. The Google tag must report which item was viewed, added to basket and bought, using the same ID as in the feed. Google lists the required dynamic remarketing events and parameters.

When IDs in the tag do not match the feed, dynamic remarketing fails or shows the wrong products. On Shopify this is a frequent issue, because variant IDs and product IDs are easily mixed up between apps. Performance Max uses the same signals. For the feed itself, see our Google Shopping agency page.

Demand Gen and YouTube in brief

Demand Gen, the successor to Discovery campaigns, shows image and video ads on YouTube including Shorts, and in Discover, Gmail, Maps and the Display Network. It is designed to create demand among people who are not yet searching, with ads that fit the feed they are scrolling. You can use your own segments and lookalike segments: people who resemble your visitors or customers.

YouTube video campaigns make sense when your story does not fit in a search ad: a product that needs to be seen working, or a service where trust in a person decides the sale. They need decent video. Poor video costs money and harms the brand.

Both are channels for building demand. Do not expect the same direct enquiries as from search, and do not judge them that way.

Which campaign type fits which goal?

Display, remarketing and video are often lumped together. They serve different goals and need different conditions.

Display, remarketing, Demand Gen and video compared
TypeGoalWhat you needMain risk
Display to new audiencesAwareness within a defined audienceStrong visuals, a clear audience, enough budgetClicks from apps and irrelevant sites with no value
Standard remarketingBring visitors backGoogle tag, consent, enough trafficFollowing the same people too often
Dynamic remarketingShow viewed products againFeed plus events with matching product IDsIDs that do not match the feed
Remarketing in searchBid higher for past visitors who search againData segments attached to search campaignsSegments too small to use
Demand Gen and videoCreate demand among people not yet searchingGood image and video assets, enough conversionsJudging on direct enquiries and stopping too early

Remarketing relies on cookies and behavioural data, so rules apply, and they also determine how large your segments can grow. This is general information, not legal advice; check your own situation with a data protection adviser.

  • Consent first. Under the Privacy and Electronic Communications Regulations (PECR), non-essential cookies need prior consent, and advertising cookies are clearly non-essential. The Data (Use and Access) Act 2025 adds exceptions for some low-risk purposes, such as certain statistical analytics, but advertising is not among them. A visitor who declines does not join your segments, so the more people decline, the smaller your lists.
  • Google's own policy. Google's EU user consent policy applies to users in the UK as well as the EEA. Your banner should pass visitors' choices to Google through consent mode, including the signals for ad user data and ad personalisation. Without them, segments fill slowly or not at all. Setting this up is covered on our conversion tracking page.
  • Sensitive categories. Google restricts personalised advertising based on health, financial hardship and other personal circumstances. A clinic, for example, may not run remarketing based on visits to a page about a specific condition.
  • Browser limits. Safari and Firefox block third-party cookies by default, so remarketing reaches part of your audience less reliably.

When Google Display ads waste money

Display is the campaign type where budget most often disappears unnoticed. These are the situations where we advise against it, or fix something else first:

  • There is no reliable conversion tracking, so Google optimises for clicks, and banner clicks are cheap for a reason.
  • You bid for clicks rather than results, and a share of clicks comes from mobile apps and games where accidental taps are common.
  • Your site has too few visitors to fill usable segments.
  • Your offer cannot be explained in one image. Complex B2B services rarely work with cold display ads.
  • The landing page does not persuade. Remarketing sends people back to the same page that failed to convince them the first time; start with a better landing page.
  • Your search campaigns are not yet in order. People actively searching are almost always worth more than people you interrupt.

What makes it work

  • Excluding placements that produce nothing, such as apps and irrelevant content categories, and using content suitability settings.
  • A frequency cap, so nobody sees the same ad endlessly.
  • A message per segment: a visitor to your pricing page is at a different stage from someone who read one article.
  • Excluding recent customers, unless you have something new for them.

How to tell whether display and remarketing add anything

Remarketing often looks better in reports than it is. The people it reaches already knew you, and some would have bought without the ad. So we look further than the conversions Google reports.

  • Judge view-through conversions separately. A conversion after merely seeing a banner is a weaker signal than one after a click. Do not simply add them together.
  • Look at the total. Do total enquiries or sales rise when remarketing is on, or do they simply move between channels?
  • Test with a holdout. Switch remarketing off for a period or a region and compare. Less exact than a laboratory, more honest than the platform report alone.
  • Use data-driven attribution to see how display works alongside search, rather than rewarding only the last click.

Display and remarketing with Kaptein Beacon

We use display and remarketing as part of an account that already steers on real outcomes, not as a separate campaign to use up budget. Kaptein Beacon is a founder-led studio based in the Netherlands, working remotely with UK companies.

  1. Strategy session. 50 minutes with the founder about your market, your customer journey and whether we fit, at £225 excluding VAT. Afterwards we decide whether to take on the work, and if so, a proposal with fixed scope and fixed price follows.
  2. Foundations. Consent banner, consent mode, conversions, the Google tag and, for shops, the feed and product IDs.
  3. Segments and messages. Which groups exist, what each needs, and which exclusions apply.
  4. Creative. Images, copy and video where needed, consistent with your brand.
  5. Management and testing. Placements, frequency, bids and an honest assessment of incremental value.

The account stays registered to your company. For how this fits with search and Shopping, see our PPC agency page.

Frequently asked questions

What is the difference between display ads and remarketing?

Display ads are the format: image or video adverts on websites, apps, YouTube and Gmail. Remarketing is an audience choice: showing ads to people who have already visited your site, used your app or are on your customer list. You can use display to reach new audiences, and you can use remarketing in display, video and search campaigns.

What is dynamic remarketing in Google Ads?

Dynamic remarketing shows visitors ads featuring the specific products or services they viewed, drawn from a feed such as your Merchant Center product feed. It needs the Google tag to send view, basket and purchase events with product IDs that match the feed exactly. When the IDs line up, it is often the most effective form of display for online shops.

What is Demand Gen in Google Ads?

Demand Gen is a campaign type for image and video ads on YouTube including Shorts, Discover, Gmail, Maps and the Display Network. It aims to create demand among people not yet searching. Google is also moving standard Display campaigns into Demand Gen, so advertisers running display should plan for that change.

Is remarketing allowed under UK data protection rules?

Yes, with conditions. Advertising cookies need prior consent under PECR, personal data must be handled in line with UK GDPR, and Google’s own consent policy covers UK users. In practice that means a proper consent banner, consent mode passing the right signals, and no remarketing based on sensitive categories such as health. Check details with your data protection adviser.

What sizes should Google Display banners be?

Most advertisers now use responsive display ads, where you upload landscape and square images, logos and text and Google builds every size automatically. If you design your own banners, common sizes include 300 × 250, 728 × 90, 300 × 600 and 320 × 50 for mobile. Producing several sizes increases reach but also production work.

What do Google Display ads cost?

Display clicks are often cheaper than search clicks, but cheap clicks are not the same as good value. Cost depends on the audience, competition, bidding strategy and placement quality. Judge display on cost per enquiry or sale and on incremental value, not on cost per click. Media spend is paid to Google directly from your own account.

How long does someone stay in a remarketing segment?

You set a membership duration for each segment, within Google’s maximum. Choose it to match your buying cycle: a few weeks for impulse purchases, longer for considered B2B or high-value services. A visitor who returns resets the clock. Consent still applies throughout, so people who declined advertising cookies are never added.

Does remarketing work for a small website?

Often only partly. Segments must reach a minimum size before Google serves ads, and consent refusals shrink them further. Small sites usually get more from remarketing in search campaigns, or from one broad segment of all visitors, than from many narrow segments. If traffic is very low, improving search campaigns and landing pages comes first.

Start with a strategy session

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