Google Ads Optimized Targeting: Everything you need to know

Google Ads optimized targeting (since 2021) and audience expansion (since 2019) are two features that changed the way audience targeting in Google Ads works to some extent.

You might be wondering why we are writing about these features now when they have been there for quite some time. Google Ads has announced that similar audiences will be sunset on 1st August, 2023. Your google display, discovery and video campaigns that use these similar audiences will opt into the optimized targeting feature automatically. Video campaigns with consideration or awareness objectives will opt into the audience expansion feature automatically after the 1st August, 2023.

We thought it would be good to explain these features in detail so you can make changes that fit your goals before these changes take effect.

What is Google Ads Audience Expansion?

Audience Expansion works in a very similar way to similar audiences. It will serve as the ideal replacement for how similar audiences.

It takes the historical data of audience segments that you have selected and finds audiences who share similar interests, behaviours, and characteristics to what you have chosen.

This features is available only for video campaigns with objective “Brand awareness and reach” or “product and brand consideration”. Your existing campaigns in these categories which use similar audiences will automatically update to optimized targeting after 1st August, 2023.

What is Google Ads Optimized Targeting?

Optimized targeting works based on data. This feature uses real-time conversion data to create an audience profile that closely resembles people that convert. Optimized targeting helps Google scour for people with a high intent to convert.

These people ideally have similar characteristics to people that have already converted. With Optimized Targeting, you can tap into the power of data and let it work its magic to optimize your campaign performance.

This feature is available only for your display, discovery & video action campaigns. Your existing campaigns in these categories which use similar audiences will automatically update to optimized targeting after 1st August, 2023.

Audience Expansion v/s Optimized Targeting using an Example

Let’s consider how these features would impact us (Excellerate Media) that offer performance marketing services using two unique audiences in targeting options – a custom segment of highly relevant searches like performance marketing services and an in-market segment for SEO & SEM services.

Audience expansion will use signals to identify similar interests & behaviours to performance marketing services. Based on historical data this feature will extend the audience to possibly target lookalikes in other segments like PPC services, digital marketing services, etc.

For the in-market segment it will probably extend to people in to other in-market segments like marketing & advertising services.

Optimized Targeting, on the other hand will use the real-time conversion data coming from the campaign to develop a profile of the ideal converters.

This feature will look for similar profiles beyond the targeted audiences based on signals of people visiting similar websites or conducting similar searches and clicking through during that search.

It uses the existing audiences only as a starting point and can go much beyond and seek conversions from all sources.

When Can Audience Expansion be Used in Google Ads Campaigns?

You can use audience expansion when you want to expand your reach and find new audiences having similar interests and behaviours to your existing target audience.

It’s perfect to break out of your advertising bubble and discover fresh faces who might be interested in what you have to offer. In easier words, it is perfect for when you are looking to increase your overall audience size and scale.

Audience Expansion can also work well when your focus is towards creating brand or product awareness (TOFU). If you have a magnanimous budget then you can also choose to use it for consideration (MOFU).

This feature works well for Top Funnel & Mid Funnel campaigns in which you are trying to create most awareness and generate interest for your product or service.

Audience expansion can also help when marketing to a small audience or even a niche, as quite often these audiences ideally struggle to spend.

When Can Optimized Targeting be Used in Google Ads Campaigns?

Optimized targeting can be your go-to tool when you’re looking to optimize your campaign performance and boost conversions. This works well if you already have a decent brand or product awareness.

If you are looking to improve conversions and performance from an audience that is already doing well, then you can opt in for optimized targeting. This can give your campaign that extra push.

How to Enable or Disable Audience Expansion?

Enabling or disabling Audience Expansion is quite easy. During campaign setup, you’ll have the option to opt in or out of this feature.

If you want to enable or disable this feature after the campaign is created or launched you can follow the following steps:

Navigate to your ad group for which you want to turn this feature off
Navigate to the audiences section
Click “Edit Audience Segments”
You will see the option to toggle “Audience Expansion” on or off.

How to Enable or Disable Optimized Targeting?

Enabling or disabling Optimized Targeting is as easy as making a decision at an all-you-can-eat buffet. Just like audience expansion, during campaign setup, you will have the option to opt in or out of this feature.

If you’ve already launched your campaign and wish to adapt these changes you can follow these simple steps:

Navigate to your ad group settings.
Edit the targeting settings.
Locate the optimized targeting option.
You can turn it on or off, depending on your campaign goals.

Few things to Keep in mind regarding Optimized Targeting

Optimized targeting & audience expansion while a brilliant feature to help your campaigns improve either reach or conversions can cause massive issues if not dealt with care.

Here are a few things that need to keep in mind:

Both features shift control of the ads targeting to Google Ads and can lead to overspending if your audience is already quite vast.
If you have a small budget, we recommend not using these features as it can eat into your budget and make your campaign spend out.

Conclusion

So, are you ready for the upcoming removal of similar audiences in google ads? Harness the power of Audience Expansion and Optimized Targeting to expand your reach, engage the right audience, and boost your campaign performance.

Embrace these features like a digital pioneer, and watch as your advertising efforts soar to new heights. Remember, the world of Google Ads is ever-evolving, so staying updated on the latest features and strategies is essential.

If you are having a hard time with these features or are not sure on how you can optimise your campaigns with these features, then all you need to do is book a free strategy call with us in which we will spend time with you understanding your objectives and how best we can help you with these features.

Explore these powerful features today and unlock a world of possibilities for your business. Get started with Google Ads and embark on an advertising adventure with Excellerate Media!

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