By: Jyll Saskin Gales, Google Ads Coach

In Google Ads, you might've come across the terms "Observation" and "Targeting" modes for audience or content targeting. Perhaps you've even heard conflicting advice on which mode to use for your campaigns. Don't worry, you're not alone!

In this blog post, I'll break down the difference between Observation and Targeting modes in Google Ads and share tips on when to use each one in your campaigns.

Observation Mode: Gather Data

Think of Observation mode as your Google Ads detective. It lets you spy on how different audiences or content choices interact with your ads without affecting who sees them. It's like having a secret agent report back on which segments are clicking, converting, and engaging with your ads the most.

Why use Observation mode?

• Gather data: Learn how different audiences/content targeting perform with your ads to make informed decisions.
• Test audience layering: See how combining different audiences affects your campaign performance.
• No impact on reach: Your ads will still be shown to everyone who searches for your keywords or matches your other targeting, maximizing your potential reach.

Targeting Mode: Get Precise

Targeting mode is like a laser beam, focusing your ads on specific audiences and/or content that you've selected. This means your ads will only be shown to people who match your Targeting selection.

Why use Targeting mode?

• Refine your targeting: Focus your budget on high-performing audiences/content for maximum efficiency.
• Exclude irrelevant audiences: Avoid wasting ad spend on people who are unlikely to convert.
• Get super niche: Show ads for narrow slices of people who closely match your niche ideal customer.

Should You Choose Targeting or Observation Mode?

The best mode depends on your campaign type, goals and knowledge of your audience. Here's a general guideline:

• Start with Observation: If you're new to audience targeting or unsure which audiences will perform best, and running a Search or Shopping campaign, start with Observation mode to gather data.
  • Switch to Targeting: Once you have enough data to identify your top-performing audiences, switch to Targeting mode to refine your campaigns and maximize your ROI.
• Start with Targeting: If you have broad keywords that attract irrelevant traffic, use Targeting mode in your Search or Shopping campaigns to show ads for those keywords only to specific, relevant audiences. Or, if you're trying to choose a mode for your Display campaign, choose Targeting. Observation isn't generally useful for Display.

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