Monitoring Your Google Ads Performance Via Observation Targeting

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You may mention audiences, keywords, demographics, placements, and subjects regarding the Google Ads campaign. Yes. They are all essential in ensuring that you hit your brand’s campaign goals. 

With so many angles to consider when strategising for your campaign selection, we understand if you lose interest and settle for what you are currently doing. Still, you know clearly, that it won’t accelerate your brand’s performance to where you want to see it. 

We dont want to confuse you, but we introduce you to both targeting and observation as they have a role in your campaigns, and it is crucial to understand the differences between them. 

Observation in Google Ads

There are numerous campaign and ad group targeting options available to assist you in reaching out to potential clients. You can target your advertising by selecting criteria such as the audiences you want to reach or the content you want ads to appear on.

You can find and make custom bids for criteria using the “Observation” tool without limiting your reach.

What is Observation in Google Ads?

Your advertising will be seen by everyone, but you will be able to see how audiences other than your target audience respond to them. 

You may then utilise this information to make informed judgments. It will assist you to decide when to raise your bids for more value traffic based on whether the well-performing audience is within or outside of your target audience. 

The data from your observations is essential to segment your ad groups and create new ad groups.

Targeting VS Observation 

As the name implies, you would use targeting when you want to actively show your adverts to a specific audience or issue. 

In essence, when you select the targeting options, you are convinced that you want to show your advertising to the specified criteria.

When to Use Targeting Mode 

When you want to filter your ad group to only show to specified audiences or on specific content, use the “Targeting” feature in your ad groups or campaigns. All marketers should use targeting in their Display advertising.

When to Use Observation Mode 

If you don’t want to narrow your campaign’s or ad group’s targeting any further but want to track how specific criteria perform with your advertisements, use the “Observation” setting. 

The “Observation” setting is suggested for all Search campaigns as well as sophisticated advertisers’ Display ads.

With the observation setting, audience segments will be used as signals if you choose to opt for Smart Bidding tactics. The data from audience segments will be used to bid more efficiently and help get you more conversions and conversion value.

Benefits of Observation Targeting Google Ads 

Easier to Monitor Potential User/Customer

One of the best things that this strategy offers is you have the luxury to monitor your potential customers. 

Observation targeting in google ads allows you to understand where your ad campaign’s traffic is coming from by analysing the actions of the audience you chose for your campaign

If you dont see this as a brilliant advantage to your brand, then we dont know what is it. It matters that you have a clear vision of where you must track your prospective clients. 

Get Insight to Expand Your Market 

You can view the statistics for that specific interest using Observation. 

This means you’ll have various statistics about your consumers who are part of that In Market Audience. Assume 100 people look for a specific item online, and Google shows you that 40 of them correspond to the Audience In Market that you have already chosen.

If you notice a high conversion rate for that audience, you can increase your bids for that audience. If you discover that just that audience converts and want to focus only on them, switch from Observation to Targeting.

Example of Observation Targeting Google Ads 

Abbey is unsure how many of her customers are interested in purchasing sportswear. 

She wants to know more, but she doesn’t want to further limit the reach of her ad group. 

She selects her campaigns, and audiences based on “What they are actively studying or planning,” Apparel & Accessories, and then Activewear for observation criteria, and then click the pencil icon on the Audience tab.

Abbey can view information on how many ad impressions appeared to users who were also looking for sportswear using this observation setting. 

Remember that observations are only reported when they intersect with existing targets (in this case “Activewear Female and Motorcycle Enthusiasts”).

If advertising presented to users who are similarly interested in Activewear performs differently than other ads, Abbey can raise or drop her prices for this audience. 

This means, that if she wanted to use a particular landing page or offer for Activewear consumers, she could also build a new ad group for them.

How to Edit Observation Settings 

Here are the seven stages to editing the targeting and observations settings:

  1. Access your Google Ads account.
  2. Select Audiences and then “Edit audience segments.”
  3. Then select either the Campaign or Ad Group level.
  4. Choose the desired Ad Group.
  5. Finally, you can pick and choose which audience segments you desire to observe and then click save

Final Thoughts

While there is no “one-size-fits-all” plan for PPC advertising, one of the most crucial parts is audience targeting.

To maximise your PPC strategy, it is critical to understand the key differences between Targeting and Observation.

We know that you may find these overwhelming and it may get you to have a second thought about performing this type of audience strategy campaign, but let us tell you that this is all worth it. 

Some strategies will work, and there are those that you need to let go of. The most vital thing is you focus on what works best for you and your brand, especially if there is a budget involved. 

As digital marketers, we want to serve you with a strategy that your brand needs, something that is tailored fit to your campaign; thus, it is good that we try and experiment with audience targeting. 

If this still confuses you, we are open to helping you out. Our SEM service team team is ready to answer your queries and walk you through the whole process of audience targeting, simply book your appointment so we can start! 


What is observation in Google Ads?

By selecting observation, you will not be showing your advertising to clients that meet your set criteria, nor will you be limiting your entire reach. 

This only allows you to observe the behaviour of persons who suit your criteria. You will also receive a performance report.

How do I change the observation to targeting in Google Ads?

As per Google, this is how to add observations to an existing ad group:

1. Sign in to Google Ads
2. In the page menu on the left, click on a targeting method (Keywords, Audiences, Topics, or Placements).
3. Click the plus or pencil button Edit.
4. On the “Add to” menu, select Campaign or Ad group, and then click Select an ad group or Select a campaign. 
5. In the window, choose an ad group or campaign from the list or search for it by name or ID.
6. You can see all of the ad group-level or campaign-level targeting you’ve set up so far.
7. Click the Add observations drop-down menu.
8. Select a method from the drop-down menu.
9. Select the criteria you’d like to add and click Done.
10. At the bottom of the page, click Save.

How do I add observations to the Google audience?

By heading to the ‘Edit all targeting‘ page, you can apply the ‘Observation‘ setting. 

If an observation method isn’t utilised for targeting the ad group, you can add it from its reporting page. You cannot add an observation technique when creating an ad group for the first time.

About Roots Digital

Roots Digital is an award-winning digital marketing agency headquartered in Singapore, specialising in eCommerce Marketing and lead generation. We are a Google and Meta Business certified partner working to deliver the best-in-class digital marketing campaigns from large enterprises and SMEs to growing start-ups.

Some of our core digital marketing services include SEO services, SEM services, PPC services, Google Analytics Services and more.

Feel free to reach out if you’re interested in working with us. Connect with us via our service enquiry form. You may schedule a call for more information and to know more about our digital marketing services.

PSG Grant For Digital Marketing – Save up to 70% on your digital marketing today!

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About Roots Digital

Roots Digital is an award-winning digital marketing agency and SEO agency headquartered in Singapore, specialising in eCommerce Marketing and lead generation.

Some of our core digital marketing services include SEO servicesSEM services, Google Ads management servicesGoogle Analytics services and more.

Feel free to reach out if you’re interested in working with us. Connect with us via our service enquiry form. You may schedule a call for more information and to know more about our digital marketing services.

Looking for digital marketing grants for SMEs? Check out our pre-approved digital marketing solutions under the PSG digital marketing grant.

PSG Grant For Digital Marketing – Save up to 50% on your digital marketing today!

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Ian Ong
Marketing Director @ Roots Digital, a digital marketing agency in Singapore. Aka the guy responsible for growing the digital marketing agency.
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