How to Use Observation Audiences in Google Search Campaigns for Better Results

Nick Cao • July 15, 2025

If you’re running Google Search campaigns and you’re not using observation audiences, you’re leaving valuable optimisation opportunities on the table.

Observation audiences allow you to collect detailed data about who is actually clicking and converting on your ads — without narrowing your targeting or restricting reach.



What Are Observation Audiences in Google Ads?


In Google Ads, you can add audiences to your campaign or ad group in two ways:


  1. Targeting – Your ads will only show to people in the selected audience.
  2. Observation – Your ads still reach everyone, but you can see performance broken down by audience segments.


For Search campaigns, observation mode is a powerful tool because it gives you actionable insights without affecting delivery.



Why Add Observation Audiences to Every Campaign


From day one of a new campaign, make it a habit (or even a rule) to add all relevant observation audiences.


This helps you see which segments are engaging and converting, even if you’re not actively targeting them. Examples include:


  • In-market shoppers – People actively researching products or services like yours
  • Affinity audiences – People with long-term interests in a category
  • Custom segments – Built from your own data or competitor keywords
  • Remarketing lists – Past website visitors
  • Competitor-intent audiences – Users showing interest in competing brands



How to Optimise Using Audience Data


Every 2–3 months (depending on your budget), review your audience performance:


  • Pause or exclude underperformers to reduce wasted spend
  • Increase bids for strong performers to capture more conversions
  • Split out high-performing audiences into their own campaigns or ad groups for tailored messaging and bidding


Pro tip: If you’re using Smart Bidding (e.g. Maximise Conversions, Target CPA), your manual bid adjustments might be ignored — but the audience data still feeds the algorithm for smarter targeting.



Real-World Results


We’ve reduced cost-per-lead by over 400% for some clients by implementing this exact approach. By letting the data guide optimisation, campaigns become leaner, smarter, and more profitable.



The Takeaway


Observation audiences are one of the most underused Google Ads optimisation tools. They cost nothing to add, don’t limit your reach, and give you rich data to improve performance over time.


If you want to get more from your Google Search campaigns, make observation audiences part of your Google Ads optimisation toolkit.

Book A Session With A Sydney-Based Digital Growth Expert.

I work with a limited number of clients to keep quality high and focus sharp. If you’re ready to grow and want to see if we’re the right fit, fill out the form and let’s start the conversation.

More Insights & Strategies

AI Is Your Assistant, Not Your Brain
By Nick Cao April 2, 2026
Artificial intelligence is an incredible productivity tool, but strategy still requires human thinking. Here’s why critical thinking matters more than ever.
Intelligence Is Cheap. Judgement Is Not.
By Nick Cao March 29, 2026
AI has made knowledge abundant. What separates the truly smart is judgement. Discover why learning velocity, empathy, taste, and inference now define intelligence.
Advertising’s Biggest Lever Is Something No Algorithm Can Fix
By Nick Cao March 28, 2026
Struggling to scale your ads? It’s probably not your targeting or bidding strategy. Discover why creative and offer are the biggest performance levers in Google and Meta advertising.
SHOW MORE