When you add an Audience segment to a Google Ads campaign (e.g., "Luxury Shoppers" or "Business Travelers"), Google asks you to make a critical choice: Targeting or Observation.
Targeting (The "Bouncer"): This restricts your ads. If you select "Luxury Shoppers" and choose Targeting, your ad will only show to them. If a user searches for your exact keyword but isn't on that list, they won't see your ad.
Observation (The "Researcher"): This does not restrict your ads. Your ad shows to everyone who searches your keyword. However, Google will secretly "tag" the people who match your audience segment so you can see their performance data separately.
The "Targeting" setting is risky. If you guess wrong about your audience, your traffic could drop to zero overnight.
Observation is safe because it doesn't change who sees your ads; it only changes the reporting.
Example Scenario: You sell Office Chairs. You aren't sure if your buyers are mostly "Gamers" or "Corporate Buyers."
You add both audiences to your campaign.
You select "Observation".
Your ads continue to run normally for everyone searching "Office Chair."
After 30 days, you look at the data. You see that "Gamers" have a 1% conversion rate, but "Corporate Buyers" have a 5% conversion rate.
Now you have proof—without ever risking a drop in sales.
Click on your Campaign or Ad Group.
In the left-hand menu, click Audiences.
Click the blue "Add Audience Segments" button (pencil icon).
Select the audiences you want to track (e.g., "In-Market: Real Estate," "Affinity: Technology").
Crucial Step: Under "Targeting setting," ensure you select Observation.
Click Save.
⚠️ Warning: The default setting is often "Observation," but if you accidentally click "Targeting," you will instantly cut off all traffic that doesn't match those lists. Always double-check this radio button!
Once you have "Observed" an audience for a few weeks, you can use Bid Adjustments to optimize profit.
Using our previous example:
You saw that "Corporate Buyers" convert very well.
You can now go to the Audience tab and set a Bid Adj. of +20% for that group.
Result: You are now willing to pay 20% more to beat competitors for Corporate Buyers, but you are still showing ads to everyone else at the normal price.
ClickSambo Note: While you are observing audiences, keep an eye on "Unknown" demographics. If you see a massive spike in traffic from "Unknown" audiences with zero conversions, it could be bot traffic. Check your ClickSambo reports to cross-reference.
Other Advertisement Analytics Performance 