Should you use optimized targeting in Google Ads? A quick guide

Optimized targeting is one default Google Ads feature that gets a ton of vitriol.

Sure, it’s not the best choice for everyone. However, there are definite use cases for this automated targeting feature.

Let’s explore: is optimized targeting your friend or foe in Google Ads? We’ll cover:

• What is optimized targeting in Google Ads? 
• Which campaign types are compatible with optimized targeting?
• Which bid strategies are compatible with optimized targeting?
• Optimized targeting vs. Audience expansion
• Optimized targeting vs. Performance Max
• How to evaluate optimized targeting: is it working? 
• Should you use optimized targeting?

What is optimized targeting in Google Ads?

The quick answer is this: optimized targeting turns your targeting into signals.

The more detailed answer is this:

Optimized targeting gives Google Ads permission to show your ads to whomever it thinks is most likely to convert, even if they don’t match your chosen audience or content targeting.

While your targeting selections may be a starting point, Google takes those as “suggestions” and uses them as a starting point, but it’s free to roam outside those boundaries if it thinks it’ll find the right people for your business.

Which campaign types are compatible with optimized targeting?

Optimized targeting is turned on by default in Display campaigns and Demand Gen campaigns.

• In Display, optimized targeting will go beyond your content targeting (keywords, topics, placements) and/or audience targeting to find users who it thinks are likely to convert.
• In Demand Gen, optimized targeting will go beyond your audience targeting.

Which bid strategies are compatible with optimized targeting?

Because optimized targeting is focused on finding likely converters, it only works with conversion-focused smart bidding strategies. That means:

• Maximize Conversions.
• Maximize Conversion Value.
• Target CPA.
• Target ROAS.

If you’re using a reach-focused or engagement-focused bid strategy, like Maximize clicks or Target CPV, then you may see a similar option called Audience expansion.   

Optimized targeting vs. Audience expansion

Optimized targeting is no longer compatible with Video campaigns, since you can no longer run a conversion focused video campaign. Instead, you’ll find a feature called audience expansion.

While it sounds similar to optimized targeting, it’s not the same thing.

Audience expansion is all about reach. It lets Google show your ads to a broader audience, but it’s focused on views and engagement from that audience, not necessarily conversions.    

Optimized targeting vs. Performance Max

If you’re familiar with Performance Max campaigns, you’ve already got a good grasp of optimized targeting. 

In Performance Max, you can provide audience signals and search themes, but ultimately, Google’s AI decides who to show your ads to.

Optimized targeting works the same way. It’s how you can let Google’s AI find the most likely converters for your campaign.

How to evaluate optimized targeting: is it working?

If you want to see how your optimized targeting is performing vs your provided signals, head to Audiences, keywords and content > Audiences.

You can compare the performance of your initial signals against what Google’s algorithm has found.

For a broader view, check out Audience Insights under Insights and Reports > Insights.  There, you’ll see which audiences were part of your original signals, which ones optimized targeting discovered, and how they compare.    

Should you use optimized targeting?

For most Google Ads campaigns, you’re going to want to start with optimized targeting off.

Make sure you turn it off during the campaign setup process, or go into your ad group settings to turn it off in an existing campaign.

If your campaign is not achieving your conversion goals, it could be because:

• You aren’t reaching the right audience.
• Your ad creative is not enticing to your audience.
• Your landing page is not effectively guiding your audience to conversion.
• Your offer doesn’t match the audience’s wants or needs.

Optimized targeting can help you test issue number 1, to see if perhaps you’re just not reaching the right audience with your ads. Turn it on, give it at least 2 weeks or 50 conversions (whichever comes first), and then decide whether it’s helping or hurting performance.

In a nutshell, optimized targeting can help you get more conversions and/or get more efficient conversions.

It’s not magic, though.

In order to work effectively, you’ll still need the Google Ads fundamentals: accurate conversion tracking, standout creative, an excellent landing page, and a compelling offer.  

This article is part of our ongoing weekly Search Engine Land series, Everything you need to know about Google Ads in less than 3 minutes. Every Wednesday, Jyll highlights a different Google Ads feature, and what you need to know to get the best results from it – all in a quick 3-minute read.