I always add audiences on ‘observation’ mode first, and based on that, I will bid upwards or downwards on those audiences if they perform well. I use a combination of auto-generated audiences and audiences that are likely to be good performers for the campaign. I combine affinity and in-market, but not too many or else it is difficult to manage. Start with only a few initially. Also try similar audiences.
Adding audiences to your campaigns can help you target the ads precisely to the right markets. But if you’re unsure how to set an audience group, start with a sample audience target with a medium level reach, then try to filter in/ filter out the audiences after auditing your campaigns after a week or fortnight.
This might help
Only add in relevant audiences to your search campaigns, even on observation. Google Ads and Google Analytics report on metrics differently in each platform (Google Ads only associates *one* audience for an impression/click/conversion, where Analytics will report on *all* audiences that a user falls under), so you should determine who most-closely aligns with your product to ensure that you’re achieving the results for your target audience.
i.e. It literally means nothing whether or not your customer is currently in-market for apparel or has an affinity for professional football if you’re offering a business software
We typically add a bunch, anything that seems like it’s relevant for that business offer.
Set them in observation, and just wait for statistical conversion data. Once you see that you can start to apply bid adjustments, usually upward.
Likewise, you can add lists that are less likely to buy and then bid down on those.
Note that if you’re using ECPC, Max. Conv, Max. Conv. Value, or tCPA/tROAS bidding that you do not have to set any adjustments. Google will learn how these audiences perform and adjust bids automatically.