Is this the right way to structure re-targeting campaign?

Question:

Im a total noob when it comes to retargeting and I have yet to find good blog or articles on best practices.. so most of my stuff is trial and error. 

Here is how I structured it

1) created an audience based on these categories
- those that came in from search (highest intent)
- those that came in from display or contextual (mid level intent)
- those that came in through organic (i.e. social media, SEO, etc.)

2) I created ad groups with exact same ads on all three... they all go to the same landing page (since it's lead generation)

3) I have separate bid for ads on each of those 3

So far, ton of clicks, but no conversion.

I've tried lowering bid.. but of course, that totally killed the campaign's impressions.

Answer:

First off, I do believe what you have done so far is correct.  You have separate landing pages and audience tags for your Search, Display and Organic landing pages and you're running your remarketing campaign to these audiences.  Sounds good to me.  

Here are a couple of thoughts for you:

1.  Different Ads & Landing Pages:  I would use different landing pages and ads for remarketing.  You could even go as far to deliver different ads/landing pages to each of your remarketing lists.  From what you say your ads are currently getting clicks so maybe just focus on landing pages. From what you say people are now sent back to a page they've already visited. The message needs to be more convincing the second and third time someone is visiting your site, you missed them the first time around. Buy Now!  Get Something Free! Sign up today!  You have a second chance now, don't give them the same pitch again...sweeten the deal. 

2.  Converted List:  Do you have a 'converted' list?  By tracking conversions with an audience tag, you can then create a combo list where you can specify - 'Show these ads to those who have clicked on a search ad but have not converted yet'.  It eliminates the showing of ads to those who have already converted, unless of course you'd like them to convert multiple times. (In lead gen, I doubt this is the case). 

You can set up remarketing to be as specific as you'd like.  I've seen cases where interest is shown with no conversion, person is remarketed to, person shows interest again but doesn't convert, joins a new audience list and is remarketed to for a third time with varying messages and 'deals' for each list. Obviously, you want to convert the first time but with remarketing, advertisers can try and try again.  

Some references for you:

Kim Clink's Wiki
Ad Innovations Video
Google Help
Inside Adwords Launch Post