To test them, we decided to conduct a small experiment. Let’s tell you more about its stages.
Stage 1. For the selected search campaign, all possible audiences with the “Observation” parameter have been added to Google Ads (hereinafter referred to as the “parent campaign”). At the first stage, we collected statistics over two weeks. This was necessary to identify audiences that bring in a large number of transactions at a low cost.
Stage 2. After analyzing the statistics, we identified audiences of the “Interested Buyers Audience” type with good CPO and transaction volume indicators.
With other targeting types, we would have adjusted bid adjustments for identified audiences, but since there was little experience with using these types of audiences in search, we separated the audiences into a separate targeting campaign (hereinafter “experimental campaign”), excluding audience data from the parent campaign ( hereinafter “original campaign”).
Analysis. The experiment lasted for two weeks. First of all, we evaluated how the transaction volume and CPO changed for the experimental campaign compared to the parent one.
At the same time, the parent campaign analyzed the same set of audiences as in the experimental one over the same time period, but for the previous period.
The results show that the volume of transactions in the experimental campaign was higher, while the CPO was lower.
|Pilot campaign vs Parent campaign (only the same set of audiences)||+ 157%||+ 167%||+ 3%||+ 6%||+ 249%||-19%|
Then we looked at campaigns as a whole – before and after these audiences were singled out as a separate campaign. And we noticed that the statistics did not change much:
|Experimental + Original Campaign vs Parent Campaign||+ 4%||+ 1%||+ 20%||+ 23%||-one%|
We saw that the experimental and original campaigns combined brought in 23% more transactions than the parent campaign, with almost the same CPO.
But at the same time, CPC increased by 20%, which is logical, since a narrower audience is more expensive than the same audience in the parent advertising campaign, where it is used as an observation.
By allocating audiences to the pilot campaign, the budget was spent only on targeting audiences, which allowed the system to receive more conversions.
Conclusions. Despite the fact that our experiment took only two weeks, we recommend using targeting of interested users in search and highlighting them in separate campaigns when you need to maximize the number of transactions without increasing the CPO. This approach will allow you to work more effectively with a loyal audience.
The “Observations” setting in Google Ads allows you to set only adjustments for the specified audience, but the ad campaign will also be shown to the new audience. This is how the budget is spent on all users.
In our case, the budget is spent only on a loyal audience, while we still have the ability to edit bids at the group and keyword level for a given audience.
It is necessary to carry out the selection procedure for well-performing audiences constantly, gradually transferring them to new campaigns.