Is one tiny setting in Google Ads silently killing your campaign’s performance?
It’s a surprisingly common issue, and it all comes down to a fundamental misunderstanding between two options: “Targeting” and “Observation.”
Brooke Osmundson absolutely nails why this is so critical for any advertiser to understand. In my experience, mixing these two up is one of the most frequent, and costly, mistakes I see clients make.
The “Targeting” Setting: Restrictive Reach
Let’s break this down. As Osmundson explains, the “Targeting” setting is restrictive. Imagine you tell Google, “Only show my ads to people interested in vintage cars.” That’s it. Anyone outside that specific audience will never see your ad, period. You’re putting a hard wall around your audience, which can choke your campaign’s reach if you’re not careful.
The “Observation” Setting: Data-Gathering Mode
Now, the “Observation” setting is a completely different beast. This is your data-gathering tool. Using this setting is like telling Google, “Show my ads to my main audience, but also observe how many people interested in vintage cars see or click on them, and let me know.” You aren’t limiting your reach at all; you’re just layering on an audience to collect performance data.
The Gold Standard: Observe First, Then Optimize
From my perspective, Osmundson’s advice is gold: start with “Observation.” Don’t guess which audiences will work best and restrict your campaign from day one. Instead, let your campaigns run and use observation audiences to see which groups actually perform well. Once the data tells you that your vintage car enthusiasts are converting like crazy, you can make an informed decision to bid higher on them or even switch to a “Targeting” strategy.
It’s all about learning before you limit. But are you using these settings correctly for your Search, Display, and YouTube campaigns?
Learn How to Apply This to Your Accounts
For a complete walkthrough of how to apply this to your own accounts, you need to read Brooke Osmundson’s full analysis. You can learn more by checking out her guide on the crucial differences between PPC Targeting and Observation settings.