Why Google’s 4th Quarter Results Raise Questions for SEO & PPC via @sejournal, @martinibuster

Few professions can match a digital marketer’s perspective on what Google’s fourth-quarter results mean for SEO and online advertising. I asked six search marketers, each with over 20 years of experience in all areas of search for insights into what those results mean. What they shared indicates what SEO and advertising professionals should be paying attention to in 2025.

The six digital marketers who were separately interviewed all suggested that four general trends may be impacting Google search and advertising performance:

  1. Shifting User Behavior
  2. Changes To Google Search
  3. Google’s Not Immune To Competition
  4. Wider Economic & Market Conditions

Shifting User Behavior & Rising Competition

Although I interviewed each search marketer individually, they all agreed that user search habits were trending away from traditional search and migrating to AI and social platforms, indicating that Google is no longer immune to competitive pressure in both search and advertising.

Benu Aggarwal of Silicon Valley-based Milestone, Inc. (LinkedIn Profile) referenced the staggering investments in AI infrastructure as tangible proof of an ongoing shift in how people access information across consumer and business use cases.

“A lot of traffic is moving to LLMs such as ChatGPT, Perplexity (and Google’s Gemini). This is evidenced by Alphabet’s investments in AI, particularly in making compute inexpensive. They’re not alone, Meta, OpenAI, Nvidia, AWS, others are all investing in AI compute to support the surging demand.”

Michael Bonfils, of Digital International Group, (LinkedIn profile) shared that OpenAI was the leading disruptor to Google’s search platform, followed by a generational shift away from search toward visual social media platforms.

Michael said:

“I’ve been saying this since November 30, 2022 that this thing that OpenAI has just released has the potential to disrupt the intent of search users on Google, making it faster and more responsive with no ad disruptions and filtering out forum comments And the timing couldn’t be worse when you have an entire generation (Z/Alpha) who have moved to TikTok/IG for their search results.”

Chuck Price of Measurable SEO (LinkedIn profile) contributing additional nuance to the observation of user platform shift:

“Platform migration pressures play a role. Behavioral shifts toward visual/search hybrids (TikTok, Instagram) and answer-engine interfaces (Perplexity) suggest Google’s monopoly on search touchpoints is eroding, particularly among Gen Z and technical audiences.”

Duane Forrester, SVP, Search INDEXR.ai and formerly of Bing and Yext (LinkedIn profile) noted that the consumer journey is increasingly beginning somewhere other than Google Search:

“Search starts are down as consumers move to social platforms. Revenue is being impacted.

This is going to be our new normal in the search industry. With younger generations now aging and their habits being different, it’s natural to see them shift behavior from traditional search into new directions.

If you thought search engines were a forever thing, you were wrong. Reliance without diversification was always a recipe for disaster. This formula remains consistent. Change is also consistent and as people shift behavior, you better, too.”

Changes To Google Search

The fact that people are using other platforms for shopping ideas, inspiration and information gathering may be signs that Google’s search dominance is increasingly vulnerable to competition. That’s something that was unthinkable as recently as five years ago.

There were multiple changes to how search results are presented in Google Search, with the most notable being that AI Overviews and other search features reduced the need to click through to an answer. This trend to show answers and not links, often referred to as “zero-click” search results, is an ongoing trend that was previously limited to informational search queries.

The complaints from some SEOs about zero-click search results that initially greeted the introduction of Featured Snippets were arguably overstated. Informational searches that require one-dimensional answers (spelling, name of a person, etc.) don’t lead to meaningful traffic (for the website or the user). The traffic from Featured Snippets becomes very meaningful when people have a reason to dig deeper to learn more about a product, movie, a celebrity or a topic.

But Google AI Overviews (AIO) completely destroyed that useful tradeoff with the Internet ecosystem. The comprehensiveness of AIOs reduce the need to click to a website because they show the answer to the current question and enable users to view summaries to answers Google anticipated follow-up questions (read about Google’s Information Gain Patent).

While the complaints about zero-click search results for featured snippets were overstated, Google’s AIO and expanded layouts virtually eliminate the need to click through to websites. This not only disrupts the web ecosystem but may also introduce unanticipated shifts in search advertising trends.

Everett Sizemore, of eSizemore search marketing consultancy (LinkedIn Profile) offered his opinion on how changes to Google Search and external pressures are affecting Google’s earnings:

“The slowdown in Google’s growth doesn’t surprise me for several reasons.

First, what used to be a rumor of competition has grown into a measurable threat. According to Statcounter Global Statistics, Google’s global search market share dipped below 90% for the last three months of 2024. That hasn’t happened since 2015.

And those numbers likely don’t even account for the rising wave of AI-driven search alternatives like Perplexity and GPTSearch, the latter of which is conservatively projected to capture at least 1% of the search market by year’s end. Among younger users, the shift will likely be even more dramatic.

Second, Google’s search results pages (SERPs) are an absolute mess. Too many cluttered, disparate features have turned the once-streamlined UX into a Frankenstein-like disaster.

Remember those bloated Yahoo Search pages from the late ’90s? The ones Google originally disrupted with its clean, white background and ten blue links? Well, we’ve come full circle—back to the chaotic, overstuffed experience we were trying to escape in the first place. Frankly, it looks like someone puked up a bunch of widgets onto the page.

Google isn’t disappearing anytime soon, but its hold on search is weakening—one earnings quarter at a time.”

Google Is No Longer Immune To Competition

Chuck Price, founder of search consultancy Measurable SEO (LinkedIn profile), called attention to how multiple trends may be contributing to an erosion of search dominance and its concomitant effect on search advertising, putting some of the blame on the zero-click paradigm:

“The main takeaway, as I see it, is that the 0.2% YoY deficit doesn’t tell the full story.

What’s surprising for me in the Alphabet earnings report is the relative stability of search revenue, 12.5% growth versus 12.7% YoY. This seems counterintuitive, when considering how the SERPs have evolved over the past year with expanded answer boxes, AI-generated summaries and entity-driven knowledge panels. All of these features reduce the need to click on an ad or click through to a website.

Did Google’s advertising algorithms manipulate pricing to get that close? If one were to look at the YoY click data, I strongly suspect the deficit is far worse.”

Google is under pressure from ChatGPT Search, Perplexity AI and other AI search engines which introduce entirely new platforms that replace the 25+ year old Search Engine Paradigm. Google is competing platform to platform with AIO and their Gemini search assistant. Michael Bonfils suggested that those events have forced Google into a difficult position with limited options:

“They have reached a damned if I do damned if I don’t situation. They are either going to make the experience better for the user, worse for the publisher/advertiser or vice versa.”

Wider Economic And Advertising Pressure

Gabriella Sannino, founder of international marketing and SEO company Level343 (LinkedIn profile) shared a wider perspective of trends to interpret what Google’s fourth quarter results means for the search marketing community. Her answer, reflecting 20 years experience in all areas of digital marketing, included search advertiser sentiment and the worldwide economic situation.

Gabriella answered:

“When you look at the big picture and then the results, I don’t think the slower growth is entirely because of major SERP changes. I think it’s a mix of factors causing buyer behavior shifts:

First, ad and marketing budgets often get cut first when times get uncomfortable. So, slower growth may just be reflecting the sign of the times rather than anything Google’s done.

Second, ongoing privacy changes can affect ads in ways that have nothing to do with Google. Browser privacy settings can make ads less targeted or reduce how well they can be measured. Consequently, advertisers get less data for conversion improvements, retargeting, and ad optimization.

Third, you can’t review the advertising situation in isolation. The competition for ad dollars from TikTok, Amazon ads, Microsoft Advertising (especially with the AI-driven Bing hype), and so on must also be considered. A multi-channel mix means some of Google’s revenue goes bye-bye to other platforms.

Many businesses have tighter budgets, so ad ROI is under more scrutiny. And, there are many disillusioned business owners realizing that Google is changing too frequently to put their entire budget on it. AIOs were a real sign that things were changing, again. I wouldn’t be surprised if Google starts playing with ad space there fairly soon.”

Google’s Not In A Downward Spiral

Our panelist of search marketers interpret the fourth quarter results as signaling that Google is no longer immune from competition and is vulnerable to losing traffic to AI and social platforms as consumers increasingly begin their shopping and informational journeys outside of traditional search.

Google’s search results are perceived as cluttered and unstable because of constant changes to SERP layouts triggered by an increasing amount of keyword phrases. This may contribute to a sense of uncertainty. Nobody observed that Google is in a downward spiral. But the combination of the instability, changes in user behavior, and gains by other platforms are trends to look out for in 2025.

Stepping back for an overall view shows that continuing global economic issues and the attractiveness of advertising across multiple channels may be contributing to a shift in marketing spend. The search marketers I interviewed, who collectively have over 120 years of experience, hinted at concerns about deeper challenges in Google’s core businesses, with one search marketer questioning if there’s more paid search instability than is apparent in the most recent quarterly results.

Maximizing Foot Traffic With Hyper-Targeted Local PPC Strategies

As someone who knows a lot of local business owners, I know how important it is to get customers through your doors.

While traditional marketing methods like flyers and newspaper ads still have their place, the digital era has opened up incredible new ways to reach local audiences and drive foot traffic, thanks to PPC advertising.

PPC platforms like Google Ads offer fairly granular geographic targeting options, allowing you to show ads only to people in the area(s) you serve. However, effective local PPC goes beyond setting a radius around your store location.

You can drastically improve your campaigns by leveraging advanced strategies and features to bring more local customers to your business.

Get Granular With Location Targeting

The foundation of any local PPC campaign is location targeting. Most marketers know the basics, like targeting by country, state, city, or ZIP code. But did you know you can get even more granular than that?

With Google Ads, you can target (or exclude) specific neighborhoods, universities, airports, and more.

Consider targeting popular shopping areas or entertainment districts near you for retail stores and restaurants.

B2B brands can focus on commercial zones or even specific office buildings (if large enough). The key is to consider where your ideal customers spend time and tailor your targeting accordingly.

You can even set different bid adjustments for different locations.

For example, if your base bid is $1.00 and you set a +20% bid adjustment for a high-performing neighborhood, Google will multiply your base bid by 1.2 (the 20% bid adjustment), allowing you to bid up to $1.20 for clicks from that area.

This tells Google you’re willing to pay more for clicks from locations that consistently drive better results.

Alternatively, you can use negative bid adjustments to scale back spend in lower-performing areas.

Hyperlocal Search Ads With Location Extensions

Google Ads location extensions allow your address and even directions to appear alongside your search ads.

When a user searches for a relevant local query, like [plumber near me], your ad can show your address, hours, phone number, and star rating.

Searchers can click your ad to get directions on Google Maps, drastically increasing the odds they visit you in person.

For location extensions to work, you must connect your Google Ads account with your Google Business Profile listing. Make sure your GBP info is complete and up-to-date.

Adding photos can make your listing stand out even more.

Google Local Service Ads: A Game-Changer For Service Businesses

Local Service Ads (LSAs) are available for over 100 service-based businesses in select countries worldwide, including Canada and all U.S. markets.

LSAs have now become crucial for local marketing success. These ads appear at the very top of Google search results – a position that even regular PPC ads can’t guarantee anymore.

Two Types Of LSA Verification:

1. Google Guaranteed

  • Primarily for home services.
  • Features a green checkmark with a circle.
  • Includes up to $2,000 in job guarantees for customers.
  • Higher requirements for insurance and licensure.

2. Google Screened

  • For professional services (lawyers, real estate agents, medical professionals).
  • Builds trust through verification.
  • No job guarantee.
  • Available for diverse businesses, including law firms, funeral homes, schools, and veterinary services.

Both types of verification involve a thorough process that businesses must undergo to prove their credibility and establish a trustworthy service for customers.

It begins with background checks that look into the history of the business and its owners. Businesses are also required to have at least $250,000 in general liability insurance for financial protection.

License verification is another crucial step, confirming that the business complies with local regulations and holds the necessary credentials to operate.

Finally, businesses are subject to regular reviews and compliance checks to guarantee they consistently meet industry standards and remain reputable over time.

Where LSAs Appear:

  • Top of search results (typically in two to three packs, expandable to eight, then 20).
  • Inside Google Maps (iOS app currently, likely expanding to Android).
  • Mobile search results.
  • During peak conversion times.
  • Within the local business finder map.

Key Performance Factors:

  • Smart bid and budget management.
  • The 3 R’s: Radius, Responsiveness, and Reviews.
  • Quick adoption of new features.
  • High-quality photo uploads.
  • Proper job booking management within the platform.

When asked what his number one tip would be, LSA expert Anthony Higman said, “Make sure you set up a profile if you’re in an eligible LSA category because it is becoming a necessity for local-based marketing strategies.”

We spoke together about Direct Business Search and I found it interesting when Higman said this, “Direct Business Search (DBS) is LSA’s branded search ad. So, you will show up for a branded search and that green checkmark will appear next to your ad.”

He went on to say, “This feature is new (so many are not fully utilizing it yet), and it’s completely within policy to double serve on your branded search campaign.

This means you can have a DBS with the green checkmark on top of your regular paid search ad. The caveat is that Google determines Direct Business Search leads by asking the customer to press 1 on their phone.

If they don’t press one before the call disconnects, you can be charged the full price of the lead. So tread carefully.”

Incorporate First-Party Data

Do you have a list of previous customer addresses, emails, or phone numbers?

With Customer Match Lists, you can upload this first-party data to Google Ads and create targeted campaigns for people who have already engaged with your business.

Since these folks are familiar with your brand, they’re more likely to visit you again, especially with the right offer.

This works particularly well for local businesses running seasonal promotions or trying to re-engage past customers who haven’t visited in a while.

Just be sure to follow Google’s policies regarding customer data usage and privacy.

Measuring Offline Conversions

Marketers have long struggled to connect digital ads to physical store visits. However, Google offers pretty good offline conversion tracking.

If you collect customer info at the point of sale, like an email or loyalty card number, you can import that data back into Google Ads.

Google then cross-references it with users who saw or clicked one of your search ads. This allows you to track things like in-store purchases or appointment bookings back to the PPC keywords and ads that drove them.

For larger retailers, Google also offers store visit conversions, which uses anonymized location history data to estimate how many users visited your location after engaging with an ad.

While it may not be perfect, these metrics provide valuable insight into how your local PPC efforts translate to real-world results.

Bringing It All Together

Driving foot traffic with paid ads requires a multifaceted approach.

You can create a local search presence that gets more customers through the door by combining precise location targeting, Google Business Profile optimizations, Local Services Ads, first-party data, and offline conversion tracking.

It’s important to remember to continually test, measure, and optimize based on what’s working.

Like any initiative, local campaigns succeed through a commitment to iterative improvement.

Even the smallest local businesses can become local search superstars with some savvy and elbow grease.

More Resources:


Featured Image: spoialabrothers/Shutterstock

Google Demand Gen Campaigns Just Got A Major Update via @sejournal, @brookeosmundson

Google is making big moves with its Demand Gen campaigns, thanks to the feedback of advertisers.

If you’re not familiar with Demand Gen campaigns, they originally launched in 2023. Shortly after, Google phased out Discovery Ads to transition them to this new campaign type.

Now, Demand Gen campaigns are getting a facelift as Google doubles down on this campaign type.

In this major announcement, Google is bringing expanded controls, enhanced creative capabilities, and new retail-focused features to advertisers.

Whether you’re already using Demand Gen or considering the switch, these updates provide more flexibility and powerful AI-driven tools to maximize campaign effectiveness.

Here’s everything you need to know.

More Control Over Where Your Ads Appear

One of the biggest changes is the introduction of expanded channel controls.

This allows advertisers to be more precise with where their Demand Gen ads appear.

Starting out in March 2025 as a full beta to everyone, advertisers can:

  • Choose specific placements across YouTube, Discover, and Gmail
  • Serve ads exclusively on YouTube Shorts for a vertical-first experience
  • Leverage Google Display Network (GDN) to extend reach across 3 million+ sites and apps.

Once rolled out, advertisers will be able to take advantage of the full available inventory for Demand Gen campaigns, which means this campaign type has the ability to reach 90% of the global internet population.

As with any new change to placement targeting options, it’s always a smart idea to double check campaign settings as these roll out. It’s unclear if new placements will automatically be eligible for inventory of if advertisers need to manually add them at the campaign level.

We will update more once Google provides clarification.

Stronger Creative Enhancements for Higher Engagement

Compelling ad creatives are at the heart of strong performance, which usually means multiple asset forms at scale.

To help advertisers scale their creative output, Google is rolling out several enhancements.

  • Vertical 9:16 image ads for YouTube Shorts: This update is coming late February 2025, allowing for a full-screen experience for users.
  • Automated video shortening: This update is rolling out in the next few weeks, allowing you to create shorter versions of your videos to optimize content on differing placements.
  • Improved ad creation workflow: Better video enhancement controls and external preview sharing for easier creative approvals.

These features allow marketers to refine their ads for different screen formats while maintaining the necessary creative flexibility.

Retail-Focused Features for More Seamless Shopping Experiences

Retailers who use Google Merchant Center can now take advantage of product feeds within Demand Gen campaigns, rolling out in the coming weeks.

This integration between Merchant Center and Demand Gen campaigns help enable:

  • Deeper product discovery. Consumers can now see full product details directly within the ads, and can toggle between product detail pages.
  • Local product availability. Showing real-time availability and product offers helps connect online shoppers to nearby store locations.
  • Omnichannel bidding. Optimize your campaigns for both online sales and in-store visits.

Google is also launching a beta for advertisers to integrate product feeds with local offers, making it easier to drive foot traffic and online conversions simultaneously.

New Reporting to Compare Demand Gen vs. Paid Social

A long-requested feature for cross-platform advertisers is here: new reporting columns in Google Ads!

These new columns will help marketers compare and analyze Demand Gen campaign performance directly with paid social efforts.

The new columns include:

  • View-through conversions to help align with social ad measurement.
  • Isolated Demand Gen impact reporting to differentiate from other Google campaigns.

The new reporting columns have already started to roll out globally, so be sure to keep an eye out if you’re already running Demand Gen campaigns.

The goal with new reporting measurement is to help provide better clarity on where budget allocations should go if you’re running cross-platform campaigns.

The Final Transition from Video Action Campaigns

While it’s not a new announcement that Google is phasing out Video Action campaigns, they did provide an updated timeline and how to transition those campaign types to Demand Gen campaigns.

  • March 2025: Google will launch an upgrade tool to transfer settings and historical learnings from Video Action campaigns to Demand Gen.
  • April 2025: Advertisers will no longer be able to create new Video Action campaigns.
  • July 2025: Google will begin automatically upgrading any remaining Video Action campaigns.

Advertisers who migrate early will retain full control over their settings and can take advantage of new Demand Gen features immediately.

What This Means for Advertisers

Google is doubling down on Demand Gen, giving advertisers more tools to optimize performance across YouTube, Display, and beyond.

These updates make Demand Gen more competitive with paid social platforms by offering precise placement controls, AI-powered creative enhancements, and robust shopping integrations.

It will be interesting to see how advertisers adapt to these changes and if platform budgets shift, especially amidst all the controversy around numerous paid social platforms.

If you haven’t experimented with Demand Gen yet, now might be the perfect time—especially before Video Action Campaigns disappear for good. The sooner you adapt, the more control you’ll have over your campaigns and performance outcomes in 2025.

You can read the full announcement from Google here.

Layering Success: How To Target High-Intent Users In Google Ads via @sejournal, @LisaRocksSEM

In an increasingly data-driven advertising world, getting your ads in front of the right people can make all the difference.

One powerful way to achieve that is through audience layering in Google Ads.

By stacking multiple audience signals like remarketing lists, in-market segments, and more, you can deliver highly relevant ads and zero in on high-intent users.

Audience layering can be complicated. Let’s dive into what audience layering is, the key components, and an example demonstrating how you can start using it effectively in your campaigns.

What Is Audience Layering?

Layering audiences in Google Ads means combining different audience targeting methods within a single campaign or ad group.

Instead of targeting just one broad group, you stack multiple criteria to create increasingly specific segments of users.

By filtering out less-qualified traffic, layering helps you focus on the people most likely to be interested in your products or services.

This approach allows you to refine your ad spend by reaching more qualified groups and speaking directly to their interests or behaviors.

As a result, you can reduce wasted spend and improve overall ad performance.

What Are The Benefits Of Layering Audiences?

  • Targeting Efficiency & Relevance: By layering audiences, you’re showing ads to people most likely to be interested with messaging more relevant to each group’s specific needs. This reduces wasted ad spend, leading to higher conversion rates.
  • Better Control Over Bidding: Layering allows you to bid differently for different audience combinations. You might be willing to bid higher for users who are your ideal customers and also okay with branching out a bit on other targeting.
  • Enhanced Insights: By analyzing the performance of different layered segments, you gain valuable insights into which audience combinations work best. This helps you optimize your campaigns and allocate your budget more effectively.

Which Types Of Audiences Can Be Layered In Google Ads?

Let’s look at the types of audiences we can choose from that are eligible for using together for advanced targeting. You can layer the following audience types (with exceptions noted below):

  • Remarketing Lists: Target people who previously visited your site, used your app, or engaged with your YouTube channel.
  • In-Market Audiences: Reach users actively researching or comparing products/services in your category, ideal for capturing high-intent shoppers.
  • Affinity Audiences: Group users by broad interests or lifestyles, such as “Pop Music Fans” or “Outdoor Enthusiasts.”
  • Customer Match: Use your own customer relationship management (CRM) data (e.g., email lists) to re-engage known customers or leads who have already shown interest in your brand.
  • Audience Segments: Formerly called “custom affinity” or “custom intent,” these let you define audiences based on URLs, apps, or keywords relevant to your niche.
  • Detailed Demographics: Refine your targeting based on age, gender, parental status, household income, and other demographic factors.
  • Combined Audiences: Combined Audiences (for Display, Video, and Discovery campaigns) allow you to create more complex targeting by combining different audience segments. This primarily uses “AND” logic, meaning you target the intersection of the combined audiences. For example, you can target users who are both on your remarketing list and in a specific in-market audience. While there isn’t direct “OR” logic within Combined Audiences, similar results can be achieved by creating separate ad groups for each audience or using bid adjustments with Observation.
  • Life Events: Target users in display and video campaigns based on significant life moments, such as graduating college, getting married, or moving.
  • Location Targeting: While not an audience, is also a crucial component and often serves as a foundational layer upon which other audience targeting is applied. For example, you might target people interested in “movies” (an Interest) who are also located within a specific city or region to advertise your theater.

By strategically layering these audience segments – and considering location targeting as a base layer – you can significantly improve the relevance of your ads, reaching the most qualified potential customers.

What Is Targeting And Observation?

The concepts of Targeting and Observation are directly related to audience layering strategies in Google Ads.

They determine how your layered audiences interact with your broader targeting settings and influence who sees your ads and how much you bid for those impressions.

Here’s how they relate:

Targeting Only And Layering

When you use Targeting with multiple audiences, you create a restrictive layering effect. Think of it as an “AND” relationship between the layers. A user must belong to all targeted audiences to see your ad.

  • Example: You target people who are “travel buffs” AND people located in Oregon. Your ad will only be shown to users who meet both criteria. Someone interested in travel but located in California would not be served ads. Someone in Oregon who isn’t interested in travel would also not be served ads.

This approach is excellent for focusing on highly qualified audiences but can significantly limit your reach.

Observation And Layering

By adding audiences in Observation, you are not directly targeting the observed audiences. The primary purposes of adding an audience to Observation are:

  • Gathering Statistics/Insights: Observation allows you to see how different audience segments perform within your existing targeting. You can analyze metrics like conversion rate, cost per action (CPA), and return on ad spend (ROAS) for each observed audience to understand which segments are most valuable.
  • Making Bid Adjustments: Based on the performance data, you can adjust your bids for observed audiences. Increase bids for high-performing segments and decrease bids for lower-performing ones. This allows you to optimize your bidding strategy without restricting your reach.
  • Example: Your base targeting is the keyword “Outdoor Gear.” You then add “travel buffs” and people located in Oregon as observed audiences. Your ads can be shown to anyone searching for “Outdoor Gear.” However, you might bid higher for users who are also interested in travel (showing stronger purchase intent) and even higher for those travel buffs who are also located in Oregon (your primary target market).

This approach allows for a broader reach while still prioritizing high-value segments through bid adjustments.

Layering Strategies And Targeting/Observation

Effective audience layering strategies often involve a combination of Targeting and Observation. Here are a few common approaches:

  • Start With Observation: Begin by observing multiple audiences to gather performance data and identify high-performing segments.
  • Transition To Targeting: Once you identify a high-performing observed audience, you might switch it to Targeting to focus your budget exclusively on that segment.
  • Combine Targeting And Observation: You might target a broad audience (e.g., “Outdoor Enthusiasts”) and then use Observation to layer in more specific interests (e.g., “Hiking”) for bid adjustments.
  • Hierarchical Layering: Use Targeting to define your core audience (e.g., location and demographics) and then layer on observed audiences for interests and purchase intent to refine bidding.

By understanding the interplay between Targeting and Observation, you can create sophisticated audience layering strategies that maximize reach and improve data gathering for optimal targeting.

screenshot of google ads audience observation and targeting settingsScreenshot of Google Ads (settings by author), January 2025

Which Campaign Types Support Audience Layering?

Audience layering, using both Targeting and Observation, is available across several Google Ads campaign types, but with some differences in functionality and availability of audience types.

The campaign types below are all supported, but have slightly different use cases by campaign:

  • Search Campaigns: Refining targeting based on user intent and demographics, particularly for reaching users who have previously interacted with your website (remarketing) or are actively researching relevant products/services (In-Market).
  • Display Campaigns: Reaching users based on interests, demographics, and browsing behavior across the Google Display Network. Layering is a key strategy for narrowing your audience and improving the relevance of your display ads.
  • Video Campaigns (YouTube): Reaching users based on their YouTube activity, interests, and demographics. Layering allows you to target specific viewer segments and optimize your video ad campaigns for better engagement and conversions.
  • Demand Gen Campaigns: Demand Gen campaigns are designed to drive conversions and generate leads. Audience layering allows you to refine your targeting to reach users who are most likely to convert and cater your sales messaging to those segments.
  • Performance Max Campaigns (Special Case):
    • Targeting (Limited): While Performance Max campaigns use audience signals, you don’t directly set Targeting or Observation in the same way as other campaign types. You provide Google Ads with “audience signals” (including your website, customer lists, and other audience segments) to help the system understand your ideal customer. Google’s automation then uses these signals to optimize targeting and reach the most relevant users across various channels. Google notes: “However, this isn’t a guarantee that ads will be served to only users within these audiences. If it’s determined that other segments of users are converting well, ads will be served outside of users specified in the audience signals.”
    • Audience Signals: You can provide a wide range of audience signals, including website visitors, customer lists, custom segments, and interests. These signals act as a form of layering, informing the system about the characteristics of your target audience.

Key Considerations:

  • Campaign Goals: Your campaign goals should inform your audience layering strategy. For example, a campaign focused on brand awareness might use broader targeting with Observation for bid adjustments, while a campaign focused on conversions might use more restrictive Targeting to reach highly qualified leads.

By understanding how audience layering works across different campaign types, you can adapt your targeting strategies to achieve your specific marketing objectives.

How Do I Set Up Audience Layering In Google Ads?

It can be a bit confusing knowing how to set up audiences and layer them in Google Ads. The following steps will get you there:

  1. Campaign > Select the campaign for which you want to apply audience layering.
  2. In the side menu > Audiences, keywords, and content > Audiences.
  3. Look to the right > Audience segments > Add Audience segments.
  4. Pick a campaign or ad group from the pop-up menu.
  5. Select the “Targeting” or “Observation” radio button – you can only choose one.
  6. Search or browse audience categories.
  7. Add Audiences > Select the audiences you want to layer.
  8. Save.
  9. Set Bid Adjustments (for Observation): After saving, you’ll be kicked back to step 3. Here, choose “show table,” where you will see the list of targeting you selected. There is a field to edit/add bid adjustments.

Audience Layering Example

Let’s look at an example of how we can layer audiences for a fictitious company selling kayaks in-store in the state of Oregon, USA.

Targeting Recommendation

  1. Location Targeting: Focus on geo-targeting cities/towns near popular kayaking spots in Oregon.
  2. In-Market Audience Targeting: Layer “Water Activities Equipment & Accessories” and “Outdoor Recreational Equipment” in-market audiences.
  3. Affinity Audience Targeting: Layer “Outdoor Enthusiasts,” and “Water Sports Enthusiasts” to reach users who have a general affinity for these lifestyles.

Explanation And Justification Of Layering:

Layer 1: Location Targeting (Cities Near Kayaking)

This layer focuses on users physically located near popular kayaking destinations in Oregon who are geographically more likely to be interested in kayaking activities in Oregon.

This recommendation is standard for a business offering location-specific services or targeting local customers.

It ensures your ads are shown to people who are geographically relevant and more likely to visit your physical store or participate in kayaking activities in the area.

Layer 2: In-Market Audiences (Water Activities Equipment/Outdoor Recreation)

This layer targets users actively researching and considering purchases related to water sports gear and outdoor recreation.

This signals a higher purchase intent compared to users who simply have a general interest in these categories.

By layering this audience with the location targeting, you’re reaching people near kayaking spots who are also actively looking to buy relevant products or services, making them highly qualified leads.

Layer 3: Affinity Audiences (Outdoor/Water Sports)

This layer broadens your reach beyond those actively researching purchases. It targets users with a general affinity for outdoor activities, travel, and adventure.

While these users might not be immediately ready to purchase, they represent a larger pool of potential customers who could be interested in kayaking.

This layer helps increase brand awareness and introduce your kayak company to a wider audience who share relevant lifestyle interests.

By layering these audiences, the kayak store can reach a highly targeted audience (those interested in outdoor activities, located near kayaking spots, and actively researching related purchases) while also reaching a broader audience of potential kayakers through affinity targeting.

The diagram below further illustrates how this targeting plays together.

Segment “A”: Represents the audience reached where the location and the in-market audience overlap and both are targeted.

Segment “B”: It is likely, but not guaranteed, that a small sample of people will be in all audiences – the in-market, affinity, and in the location targeted. This would be an ideal audience.

Segment “C”: Represents the audience reached when both in the location and in the affinity audience list.

audience layering venn diagram example for google adsDiagram created by author, January 2025

How Do I  Measure Success?

Now that we’ve explored an example layering plan, let’s get ready to evaluate the success of layered audiences.

Like most campaigns in Google Ads, focus on these key metrics:

  • Conversion Rate: Which audience combinations lead to the most conversions (sales, leads, etc.)? A higher conversion rate indicates a more qualified audience.
  • Cost Per Conversion (CPA): How much does it cost to get a conversion from each layered audience? A lower CPA means you’re getting conversions more efficiently.
  • Return on Ad Spend (ROAS): For every dollar you spend, how much revenue are you generating from each layered audience? A higher ROAS indicates a more profitable audience.
  • Click-Through Rate (CTR) (Secondary Metric): While not a direct measure of success, a higher CTR can suggest that your ads are resonating with a particular audience segment.
  • Impression Share (For Targeting): If using Targeting, monitor the impression share to see if you’re reaching all available users within your targeted audience. A low impression share could suggest that your bids are too low or your targeting is too specific.

By analyzing these metrics for each layered audience, you can identify valuable segments, optimize your bids, and refine your targeting.

Final Thoughts

Audience layering stands as a cornerstone strategy for PPC professionals looking to maximize their advertising impact in today’s rapidly evolving digital landscape.

By strategically combining audience signals, you create targeting precision that directly impacts your bottom line.

Successful audience layering isn’t set-and-forget. Your commitment to understanding and applying these strategies will directly impact your campaign’s success.

The power lies not just in the layering itself, but in your approach to selecting, measuring, and optimizing these combinations over time.

More Resources:


Featured Image: U-STUDIOGRAPHY DD59/Shutterstock

Smart Bidding In Google Ads: In-Depth Guide via @sejournal, @brookeosmundson

Imagine running campaigns that adjust bids perfectly for every auction, targeting the right user at the right moment.

That’s the promise of Smart Bidding in Google Ads.

For PPC marketers, especially for beginners, Smart Bidding can feel like an enticing but sometimes overwhelming tool.

Between algorithm updates, new automation options, and ever-changing PPC best practices, it’s easy to lose sight of how to maximize its potential.

In this guide, we’ll explore what Smart Bidding is, how it works today, and the actionable strategies you can use to get the best results. Whether you’re new to automation or looking to fine-tune your approach, this article is here to help.

What Is Smart Bidding?

Per Google’s definition:

“Smart Bidding refers to bid strategies that use Google AI to optimize for conversions or conversion value in each and every auction.”

Unlike manual or rules-based bidding, Smart Bidding uses data signals – like device type, time of day, location, and even user intent – to determine the optimal bid for each auction.

Some of the key Smart Bidding strategies include:

  • Target Cost Per Acquisition (CPA): Sets bids to help you get as many conversions as possible at your target cost per acquisition.
  • Target Return on Ad Spend (ROAS): Focuses on maximizing conversion value at your desired return.
  • Maximize Conversions: Aims to get the highest number of conversions within your budget.
  • Maximize Conversion Value: Optimizes for the highest total conversion value, perfect for campaigns with varied transaction amounts.

These strategies are invaluable for streamlining campaign management, saving time, and improving results.

However, they work best when paired with a clear strategy and enough data points to make sound decisions.

When Should You Use Smart Bidding?

Smart Bidding isn’t a one-size-fits-all solution. Choosing the right strategy depends on your campaign goals, audience, and available data.

Here’s when each strategy shines, along with real-world examples to help you decide:

Target CPA

Target CPA is perfect for campaigns where controlling the cost per lead or conversion is crucial, such as lead generation.

For example, a SaaS company running a campaign to drive free trial signups wants to maintain a $50 CPA.

By setting this target, Smart Bidding adjusts bids to focus on leads that are more likely to convert within that range, while ignoring auctions where conversion costs might exceed that goal.

Target ROAS

This Smart Bidding strategy is ideal for campaigns where profitability matters more than the number of conversions. Typically, most ecommerce businesses would opt for a ROAS strategy.

For example, say an online retailer selling high-end electronics has a goal to maintain a 400% ROAS (four times return on every dollar spent).

Using Target ROAS, the algorithm prioritizes auctions for users likely to generate higher-value purchases, such as customers buying laptops, while de-emphasizing bids for lower-margin items like accessories.

Maximize Conversions

Try using this Smart Bidding strategy when you have a set budget and want to maximize the total number of conversions, regardless of cost per conversion.

It’s especially effective for brand awareness or expanding into new markets.

For example, say, a non-profit organization aims to maximize email signups for a new awareness campaign.

Since the focus is on volume rather than cost efficiency, Maximize Conversions helps them get the most signups possible within their budget.

Maximize Conversion Value

This strategy is best for campaigns with varied transaction values, where the goal is to optimize for total revenue or high-value actions.

For example, a luxury travel agency advertises vacation packages ranging from $5,000 to $20,000.

By using Maximize Conversion Value, the campaign prioritizes auctions for customers likely to book premium packages, even if they cost more to acquire, rather than focusing on smaller bookings.

Common Pitfalls Of Smart Bidding

Smart Bidding is a powerful tool, but it’s not immune to challenges. Understanding potential pitfalls can help you avoid costly mistakes.

1. Insufficient Or Incorrect Data

Smart Bidding relies heavily on historical data to optimize bids. Campaigns with low conversion volume or incomplete tracking often confuse the algorithm, leading to poor performance.

For example, if you have a campaign that only gets 10 conversions in the past 30 days, it may not be best to go all in on Target ROAS or Target CPA strategies until it gathers more data.

With only a handful of conversions every month, the algorithm lacks enough data to predict future outcomes, resulting in missed opportunities or over-aggressive bidding.

For new campaigns, consider using Maximize Clicks first to gather enough traffic to your website, allowing the algorithm to learn faster and gain more historical data.

2. Misaligned Goals

Using the wrong bidding strategy for your campaign objectives is the easiest way to derail your campaign.

For instance, Target CPA may not be suitable if profitability (ROAS) is your primary goal.

In this hypothetical example, say a retailer mistakenly applies Target CPA to a holiday campaign, aiming for a $20 CPA, even though their products have a $200 average transaction value.

That strategy drives volume, but at the expense of profitability.

Make sure to clearly define your campaign’s primary objective (lead generation, revenue maximization, etc.) and choose a Smart Bidding strategy that aligns with it.

3. Overlooking The Learning Phase

Every Smart Bidding strategy has a learning phase where performance may fluctuate as the algorithm adjusts.

Making changes too soon can reset the process and waste budget.

Say you just launched a campaign with a Target CPA strategy, only to switch it to Maximize Conversions just one week later due to inconsistent results.

This prevents the algorithm from stabilizing and optimizing for long-term success.

Allow one to two weeks (or longer for low-volume campaigns) for the learning phase to complete. Monitor performance, but avoid major changes during this period.

4. Ignoring External Factors

While Smart Bidding is highly adaptive, it can’t predict seasonal trends, promotions, or external market shifts without proper input.

Make sure to use Google’s seasonality adjustment tool to account for temporary shifts in user behavior during sales or promotions, or even national events that could change a user’s online behavior.

5. Underutilizing Advanced Features

Many advertisers set up Smart Bidding, but fail to use advanced options like bid simulators, audience layering, or custom conversion values.

This limits their ability to optimize performance.

Try testing out some of these additional campaign or ad group layers to understand the potential outcomes, and use audience insights to refine targeting.

Best Practices For Smart Bidding Success

Smart Bidding can be a game-changer in the results of your campaigns, but it’s not a magic wand.

To get the most out of this powerful tool, you need to pair automation with thoughtful planning and regular oversight.

By following these tried-and-true best practices, you’ll not only improve campaign performance but also avoid the common pitfalls that trip up many advertisers.

1. Feed The Algorithm With Clean, Accurate Data

Conversion tracking is the backbone of Smart Bidding. Errors in tracking or unverified conversions can lead to misguided optimizations.

When fed with clean and accurate data, the algorithm has the best chance to produce fruitful results.

But when fed with inaccurate data points, your Smart Bidding strategy will wreak havoc on your performance.

Garbage in, garbage out.

Be sure to regularly audit your conversion tracking setup. Ensure every key action (purchases, form submissions, calls, etc.) is tracked accurately and attributed correctly.

For ecommerce campaigns, make sure to include transaction values to correctly use Maximize Conversion Value or Target ROAS strategies.

2. Set Realistic Goals

Unrealistic CPA or ROAS targets can choke the algorithm, resulting in limited impressions or poor bid adjustments.

If you’re not sure what to set your campaign targets at, review historical campaign datasets to set achievable targets.

For example, if your average CPA is $50, don’t set a Target CPA of $20 right away. Start closer to your historical average and adjust gradually.

This also pertains to your daily budget. If your daily budget is only $50 but your average CPA target is $50, this will severely limit ad serving because it’s holding back finding the user most likely to convert.

3. Layer Audiences And Signals

While Smart Bidding works on its own, adding audience segments or demographic layers can give the algorithm more context.

Try using remarketing lists, in-market audiences, and customer match data to guide Smart Bidding towards higher-value users.

You can add audience segments as “Observation Only” to start with if you don’t want to narrow on those users specifically yet.

Depending on their performance, you can always adjust your bids up or down, or even exclude them altogether.

4. Leverage Seasonality Adjustments

Google’s seasonality adjustment feature lets you signal to the algorithm about anticipated spikes or dips in demand.

Before a major sale or holiday, input a seasonality adjustment to help the algorithm prepare for the surge in conversions.

Additionally, make sure to increase your daily budgets to account for those holiday surges.

5. Monitor Performance With The Right Metrics

Don’t rely solely on Google Ads’ automated suggestions and insights.

Do your due diligence and analyze auction insights, search impression share, and audience performance to identify trends and areas for improvement.

6. Run Experiments To Validate Strategies

Testing is critical to understanding what works.

Google Ads Experiments allows you to split test Smart Bidding strategies without risking your entire budget.

For example, say you’ve been running a campaign on Maximize Conversions, but are looking to narrow in on a specific CPA target.

You can set up an experiment to test a Target CPA strategy against the Maximize Conversions to see what performs better for your goals.

That way, you’re not dramatically shifting the behavior of the account overnight and introducing a lot of volatility into performance.

The Bottom Line On Smart Bidding

Smart Bidding in Google Ads has evolved to become an indispensable tool for PPC marketers.

Its ability to leverage machine learning and real-time data is unmatched, but like any tool, its success depends on how you use it.

By aligning your strategy with your goals, feeding the algorithm accurate data, and monitoring performance regularly, you can unlock its full potential.

Remember, automation doesn’t mean you’re off the hook – it means you have more time to focus on strategy, creativity, and scaling your campaigns.

With the right approach, Smart Bidding isn’t just smart – it’s transformational.

More Resources:


Featured Image: dee karen/Shutterstock

Google Ads Introduces Advanced Targeting For Performance Max via @sejournal, @MattGSouthern

Google Ads updates Performance Max with advanced controls, improved reporting, and smarter targeting to optimize campaign performance.

  • Advertisers get more control over AI with new targeting and exclusion tools.
  • Improved reporting provides clearer insights into search and asset performance.
  • Updates focus on transparency, actionable data, and high-value customer targeting.
Google Phrase Match: Everything You Need To Know via @sejournal, @siliconvallaeys

Google has continued evolving its ad targeting systems, emphasizing AI-driven, intent-based matching that connects ads to user searches more flexibly.

With this shift, Google Ads aims to give advertisers a balance between reach and control – where phrase match keywords can now capture broader, intent-aligned search terms.

Recent updates focus on “relevant variations” of search terms, leaning heavily on Smart Bidding to provide cost-effective results while allowing AI to show ads for a broader set of queries that match the user’s intent rather than specific words.

Phrase Match Examples

Phrase match’s looser definition introduced in 2024 means ads can appear for broader, intent-aligned queries rather than just queries that contain the same words as the keyword.

For example, a keyword like “eco-friendly cleaning supplies” may trigger ads for searches like [sustainable cleaning products] or [green cleaning solutions].

While these queries don’t have the same words as the keyword, which phrase match used to require, Google’s AI judges these variations as relevant, offering broader reach without sacrificing quality.

User Insight: To analyze phrase match performance, monitor Google’s enhanced search term reporting, updated in June 2024.

With this update, Google improved visibility by including misspelled search queries alongside their correct counterparts, revealing approximately 9% more search terms that were previously categorized as “Other.”

This additional visibility allows you to identify trends better and spot irrelevant terms, providing more data to refine your campaigns for optimal results.

What Is Phrase Match In Google Ads?

Image from author, November 2024

Phrase match traditionally required ads to appear only for searches containing the keyword phrase in the exact order.

However, with Google’s transition to intent-based matching, ads can now appear for searches that align with the advertiser’s keyword intent, even if the phrase order or specific wording differs.

This means that ads may show on searches that include the meaning of the keyword, even if that meaning is implied or if the user’s search is a more specific form of it.

Example of Phrase Match Flexibility: Suppose your phrase match keyword is “tennis shoes.” With 2024’s updates, this keyword could trigger ads for searches like [men’s tennis sneakers] or [women’s sports shoes for tennis].

Although the words aren’t identical, Google’s AI recognizes that they share a similar intent, allowing advertisers to capture more relevant clicks within this broadened scope.

This approach enables advertisers to reach a wider audience than with an exact match but still maintains more control than broad match.

The syntax for phrase match remains the same – by placing quotes around the keyword, such as “tennis shoes,” advertisers signal Google to match ads to relevant variations of the keyword’s meaning.

This intent-based system ensures ads appear only on searches that closely relate to the product or service, giving advertisers the reach they need without diluting relevance.

New Brand Controls And Thematic Targeting In Phrase Match

Phrase match now prioritizes search intent over strict keyword matching, using Google’s AI to focus on relevance rather than exact phrasing.

This shift enables phrase match to capture a broader range of intent-aligned queries, making thematic keyword grouping a strategic approach.

Organizing keywords by theme allows advertisers to better manage reach and relevance within ad groups.

For instance, if you’re promoting fitness leggings, a thematic ad group could include terms like “workout leggings,” “athletic leggings,” and “high-performance gym tights.”

This approach ensures your ads reach intent-aligned searches across a focused product theme, achieving both precision and broader coverage.

The June 2024 update also introduced expanded brand controls that enhance targeting flexibility, allowing advertisers to better manage ad placements with two new tools: brand exclusions and brand inclusions.

Brand Exclusions

This setting allows you to prevent ads from appearing on specific brand-related search queries that don’t align with campaign goals.

It’s useful for filtering out irrelevant brand terms, misspellings, or close brand variants and is applicable across all match types and Dynamic Search Ads (DSAs).

By using brand exclusions, you can maintain ad relevance and ensure that impressions focus only on relevant traffic.

Brand Inclusions

Specific to broad match, brand inclusions allow ads to appear only on queries associated with selected brands.

This is useful if you want broad match reach but with more brand-specific targeting, helping you avoid unwanted brand associations while benefiting from broad match’s potential for higher reach.

Together, these brand controls offer advertisers more refined management over ad placements, which is especially helpful as phrase match broadens to capture more thematic intent.

However, it’s essential to monitor the impact of brand exclusions on reach and conversion rates.

Regularly review and adjust brand settings to optimize reach while maintaining ad quality and relevance.

Phrase Match Vs. Other Match Types

Image from author, November 2024

Phrase match stands distinct from exact and broad match types by offering a balanced middle ground between controlled targeting and reach.

Exact match remains the best option for high-precision campaigns, ensuring ads only appear for searches that closely match the target keyword.

Broad match, on the other hand, is often used in conjunction with Smart Bidding and Responsive Search Ads to allow Google’s AI to find additional conversions within bid targets, even when the keywords may be less directly related to the advertiser’s core terms.

For advertisers who want to balance control with reach, phrase match continues to provide a reliable option that blends intent-focused targeting with a reasonable scope.

Broad match can be beneficial when aiming for conversions at lower costs through Google’s automated relevance, though it requires careful monitoring to avoid potential misalignment with the brand’s focus.

As we compare these match types, recent performance data offers further insight into how each one delivers value in specific areas.

Optmyzr’s November 2024 analysis provides a deeper look at key metrics across exact, phrase, and broad match keywords, highlighting unique advantages that can guide strategic choices.

Performance Analysis Of Match Types

Strategic Data: Optmyzr’s November 2024 analysis of 992,028 keywords across 15,491 ad accounts highlights the unique strengths of each match type:

  • Exact Match: Delivers the highest precision with the highest ROAS (415%) and CTR (21.6%).
  • Phrase Match: Offers balanced reach, with the second-highest ROAS (314%) and CTR (11.4%).
  • Broad Match: Maximizes cost-effective volume, with the lowest ROAS (278%) and CTR (8.5%) but the highest conversion rate (8.52%).

Among the nearly one million keywords analyzed, 36% were phrase match, 33% were exact match, and 31% were broad match.

Match Type No. of accounts No. of campaigns No. of keywords Conv. rate ROAS CPC CPA CTR
Exact 12,936 57,219 332,343 7.98% 415.33% 1.40 17.59 21.66%
Phrase 15,491 69,592 353,050 9.31% 313.17% 1.71 18.33 11.36%
Broad 12,760 48,599 306,635 8.52% 277.71% 1.81 21.29 8.53%

Source: Optmyzr Keyword Study – November 2024

Advantages Of Using Phrase Match

Image from author, November 2024

Why Choose Phrase Match Over Exact and Broad Match?

With recent updates, phrase match now captures intent-aligned searches similarly to broad match, raising the question of why advertisers would still opt for it instead of relying solely on broad and exact match.

The reason lies in phrase match’s ability to deliver relevant reach with more control than broad match can offer.

While broad match can generate traffic across a wide range of search terms, it may attract some unrelated queries, even with Smart Bidding adjustments.

Phrase match offers a balance, allowing ads to reach more intent-aligned searches while filtering out terms that stray too far from the specific theme of the keyword.

This makes phrase match particularly valuable in campaigns where maintaining relevance within a competitive market is key but where exact match’s narrow targeting may miss valuable variations of user intent.

Image from author, November 2024

Advantages Of Using Phrase Match

Phrase match remains a highly effective tool, offering advertisers the flexibility to capture a range of relevant queries while maintaining a degree of control beyond what broad match provides.

Google’s AI updates enable phrase match to work seamlessly with Smart Bidding, aligning ads more accurately with intent-aligned queries, which can lead to higher click-through rates and better campaign efficiency.

These updates make it possible for phrase match to achieve a broader reach while still focusing on relevance, capturing queries close to the product or service theme.

For advertisers seeking a balance between reach and cost-efficiency, phrase match stands out as ideal – especially in competitive markets where control over search intent can help maximize ad relevance and minimize wasted spend.

Disadvantages Of Using Phrase Match

Phrase match, while flexible, carries some potential drawbacks.

The broad reach might lead to less relevant matches, which can result in increased costs if not monitored carefully. Negative keywords, brand exclusions, and regular adjustments are essential to keep your campaigns targeted and cost-effective.

Pro Tip: Brand exclusions, combined with a vigilant approach to monitoring search terms, can help avoid irrelevant clicks. Be cautious with overly generic phrase match keywords that may trigger less relevant ads, leading to wasted ad spend.

When To Use Phrase Match In Your PPC Campaigns

Phrase match is ideal for capturing a range of related searches without segmenting the campaign too narrowly.

Using thematic keyword groupings can help improve campaign efficiency, as Google’s systems now recognize broader but intent-aligned variations.

Pairing broad match with phrase match can be effective, especially for large-scale campaigns.

Broad match, when combined with Smart Bidding, can help identify new opportunities, while phrase match ensures the ad stays relevant to a specific theme.

Phrase Match Tips For Success

To enhance the effectiveness of phrase match keywords in your campaigns, consider implementing the following advanced strategies:

1. Leverage Thematic Ad Group Structuring

Organize your ad groups around specific themes or product categories. This approach ensures that your ads are triggered by search queries closely aligned with user intent, thereby improving ad relevance and performance.

For instance, grouping keywords like “eco-friendly cleaning supplies” and “sustainable cleaning products” within the same ad group can help target environmentally conscious consumers more effectively.

2. Implement Advanced Negative Keyword Strategies

Regularly update and refine your negative keyword list to exclude terms that are irrelevant or unlikely to convert.

This practice prevents your ads from appearing in unrelated searches, optimizing your budget and enhancing click-through rates.

For example, if you’re selling premium products, adding “cheap” or “discount” as negative keywords can help filter out bargain hunters.

3. Utilize Google’s Search Term Reports

Analyze search term reports to gain insights into the actual queries triggering your ads.

This analysis allows you to identify and add irrelevant terms as negative keywords and discover new, relevant keywords to target.

Regularly reviewing these reports helps fine-tune your keyword strategy for better alignment with user intent.

4. Apply Smart Bidding Strategies

Employ Smart Bidding strategies, such as Target CPA or Target ROAS, in conjunction with phrase match keywords.

Google’s machine learning algorithms can optimize bids in real-time, enhancing the likelihood of conversions and improving return on ad spend.

This approach leverages Google’s AI to adjust bids based on contextual signals, leading to more efficient budget utilization.

5. Conduct A/B Testing

Perform A/B tests on various elements of your campaigns, including ad copy, landing pages, and call-to-action phrases.

This experimentation helps determine what resonates most with your audience, allowing for data-driven optimizations that enhance overall campaign performance.

By integrating these advanced strategies, you can maximize the potential of phrase match keywords, ensuring your ads reach the most relevant audience while maintaining control over your advertising spend.

Key Takeaways

Google’s 2024 updates have reshaped phrase match, expanding reach but reducing the control advertisers once had over precise targeting. This shift to AI-driven matching requires adapting, as campaigns may capture broader traffic that sometimes strays from exact intent.

To make the most of phrase match under these new rules, focus on core best practices: use negative keywords to refine results, apply Smart Bidding to maximize ROI, and organize campaigns with thematic ad groups.

While this change limits some targeting precision, Google’s AI now helps uncover high-value, intent-aligned searches you might otherwise miss.

Final Takeaway: Though these updates may feel restrictive, staying proactive and adaptable can help you capture relevant audiences and maintain competitive performance in the evolving PPC landscape.

More resources:


Featured Image: myboys.me/Shutterstock

Paid Media Marketing In 2025: 7 Changes Marketers Should Make via @sejournal, @brookeosmundson

Paid media marketers, take a deep breath – 2024 was a whirlwind, wasn’t it?

AI officially moved from buzzword to business-as-usual, with tools like Google’s Gemini and Microsoft’s Copilot changing how we create ads, manage campaigns, and even analyze performance.

Privacy updates threw yet another curveball, with third-party cookies trying to fade into the sunset, but then Google reversed its decision, and platforms stepped up with new privacy-friendly targeting solutions.

Oh, and let’s not forget TikTok and Reddit leveling up their ad platforms, making them serious players for advertisers looking to diversify beyond Google and Facebook.

And then there’s Google’s AI-generated search overviews. If you haven’t seen them yet, they’re already shifting how ads show up in search results, adding new dynamics to a space we thought we had figured out.

Basically, the industry didn’t slow down this year – it sped up.

As we head into 2025, the message is clear: Staying still is not an option. The platforms are evolving, consumer behavior is shifting, and if you’re not testing, adapting, and optimizing, you’re falling behind.

Whether it’s leaning into AI, rethinking targeting, or getting smarter about how you spend your ad dollars, there’s no shortage of ways to level up your paid media game this year.

So, let’s talk about seven tangible changes you can make next year to keep your campaigns ahead of the curve.

These aren’t theoretical tweaks – they’re practical, actionable strategies you can implement today to drive better results tomorrow. Let’s dive in.

1. Embrace The Shift To Conversational AI In Ad Creation

Conversational AI tools like Google’s Gemini and Microsoft’s Copilot enable ad creation and optimization in a more fluid, interactive way.

They’re becoming essential for marketers who want to scale ad variations without exhausting creative resources.

If you’re looking to test and scale how this can work for you, start small with AI-generated ad copy tests. Use the conversational AI tools within the Google Ads platform to create a few new ad variations that differ from your standard copy.

For instance, if your current ads are heavily CTA-focused, let the AI suggest more storytelling or benefits-driven language and test these versions in a limited campaign to gauge performance.

Another tip is to start experimenting with ad personalization at scale. AI tools allow you to input audience insights, such as location or interests, to create tailored ad variations.

Create segmented ads that appeal to different demographics or psychographics and use split testing to identify which approach resonates best.

Lastly, whenever you’re using AI-generated content, make sure to set aside time to review those suggestions monthly. Take note of recurring suggestions that could highlight hidden opportunities or adjustments you may not have initially considered.

2. Refine Ad Targeting With Data Privacy In Mind

With the unreliability of third-party cookies, the upcoming year marks the need for refined targeting strategies that balance effectiveness with privacy.

Tools like Google’s enhanced privacy features and Microsoft’s predictive audience segmentation help ensure you’re reaching the right users in a compliant way.

Now’s the time to develop a robust first-party data strategy. Start by auditing your first-party data to identify gaps and potential sources for future data.

You can also utilize your customer relationship management (CRM) tools and website data collection to capture behavior-based insights and create audience segments you own.

Additionally, because both Google and Microsoft allow Customer Match solutions, it’s a great time to review those policies.

Google is updating its Customer Match policy in January 2025 to ensure that first-party data being used in campaign targeting has been collected with consent.

This leads to implementing a consent-based tracking strategy for your company.

Use tools like cookie consent managers and transparency banners to build trust and ensure you’re gathering data responsibly. If you don’t, you’re at risk of not being able to use first-party data solutions by the ad platforms.

When creating a consent-based tracking strategy, it’s also a good idea to proactively share with users how you use their data and offer clear opt-out options. Transparency is key in this two-way buyer and seller relationship journey.

3. Optimize For AI-Driven Search Ad Placements

AI-generated search summaries, especially in Google’s AI Overviews, are creating new ad placements and impacting traditional ad performance. This trend requires close monitoring and proactive adjustments to stay competitive.

As these new ad placements continue to roll out, here are a few tips to make sure your PPC ads are optimized for this new wave of AI content.

  • Monitor CTRs On AI-Influenced Placements: Start tracking the click-through rates of ads appearing in AI-generated results versus traditional SERPs. This insight can help you understand whether AI-generated placements impact user engagement and identify areas for improvement.
  • Create Specialized Assets For AI Overviews: Use images, headlines, and descriptions designed for short attention spans. For instance, include a compelling image and a clear, concise CTA in your ad to boost appeal in this new placement.
  • Review Performance Max Insights Regularly: Google’s Performance Max campaigns, which include AI-driven placements, provide insights into what combinations work best across channels. Use this data to refine ads in other campaigns where similar placements are available.

4. Lean Into Multi-Channel Campaign Integration

With consumers using multiple platforms interchangeably, paid media strategies must embrace an integrated, omni-channel approach.

Platforms like TikTok and Reddit have built out more robust ad offerings, providing marketers with more cross-platform synergy.

Start by mapping out a cross-platform customer journey. Outline your audience’s touchpoints across different platforms.

For instance, if your customer typically discovers products on TikTok but purchases through Google Shopping, ensure you’re present and active on both channels with consistent messaging.

Another item to keep in mind is utilizing platform-specific metrics to refine your strategy.

Each platform has unique engagement metrics. For example, on TikTok, you can monitor completion rates and engagement (likes, comments) to assess content effectiveness.

LinkedIn, on the other hand, is a place to focus on connection and message response rates.

Tailor your content based on what performs best on each channel. Each channel should have a different content strategy, not just putting the same ads across all platforms, hoping that one of them will click with a user.

5. Optimize Creative Customization With AI Image Editing

AI-powered image editing allows for rapid customization across visuals, which is critical for multi-audience campaigns.

Canva’s integration with Google Workspace and Microsoft’s AI image generator simplifies the creative process, enabling customization without extensive design resources.

To make the most of these AI editors and integrations, start with creating templates for faster customization.

Design or download templates on Canva that match your brand guidelines, making it easy to adjust colors, fonts, and messages for different audiences with minimal effort.

The templates can help you maintain visual consistency while catering to different segments.

To take it up a notch, try running A/B tests on custom visuals. Create two or more variations of AI-edited images to test different elements.

When testing creative, make sure to test differences that are noticeable enough. Track which visual styles drive the most engagement, and use those insights to guide future designs.

If you’re targeting multiple locations in your ads, use AI tools to adjust visuals for regional appeal.

For example, if you’re running an ad in New York and California, you can use AI to create images that feature landmarks or seasonal elements relevant to each location.

6. Enhance Attribution Tracking And Adjust KPIs Accordingly

A multi-device world demands better attribution tracking to understand the entire customer journey.

Google’s Enhanced Conversions and Microsoft’s Customer Insights provide more reliable data across touchpoints, helping marketers adjust KPIs to reflect complex engagement patterns.

To start, review enhanced conversions for first-party tracking to determine if this makes sense for your account.

Enhanced Conversions capture data from form fills or purchases to match offline actions back to Google Ads. When setting this up, make sure your campaigns reflect actual conversions, not just clicks, allowing for more accurate reporting.

Additionally, if you’re still using Last Click attribution models, you will be left in the dust.

It’s time to move beyond last-click attribution to track the impact of each customer touchpoint. You can use Google Analytics or Microsoft’s attribution reports to assess the role of each ad in a customer’s journey, and allocate credit accordingly.

Lastly, when it comes to measurement, it’s time to evolve your key performance indicators (KPIs). Not every channel in your marketing mix should be measured by direct purchases.

Just last year, in North America, the average person owned 13 devices – a 63% increase from 2018.

Users leverage multiple devices during their purchase journey, accounting for more visits but fewer conversions. No wonder conversion rates are decreasing!

For example, if you’re running a brand awareness campaign on TikTok for an audience who’s never heard of you, your KPIs should not be measuring purchases.

Track meaningful metrics like engagement rates, increase in branded search queries, or time on site to understand how those platforms contribute to long-term brand growth and loyalty.

7. Make Influencers Part Of Your Marketing Model

Small and large influencers alike are an awesome resource at your fingertips, just as long as your audiences align.

Even brands with a few thousand followers can utilize influencer marketing to make a big difference and gain traction in the market.

You can use AI tools to help you find the top influencers in your space. Then, figure out a Cost Per Acquisition (CPA) for working with them.

From there, you can create a win-win partnership that gets you more leads or purchases while the influencer earns income.

However, be sure to vet your influencers carefully. Users are quick to spot inauthentic content, so make sure that your influencer strategy includes real, authentic voices that truly love and use your product.

Whichever you choose, make sure the influencers you find are big enough to provide real value to your brand — and that you’re paying a CPA that makes sense for your budget and overall goals.

Your 2025 Plan Should Be Evolving

Paid media isn’t about keeping up – it’s about staying ahead.

The industry is moving faster than ever thanks to AI tools, helping us rethink how we work, while privacy changes and new ad formats force us to refine how we connect with our audiences.

The days of “set it and forget it” are long gone. Today, success means constantly testing, tweaking, and evolving your strategy to meet the moment.

The good news?

These changes shouldn’t be seen as obstacles, but opportunities.

By embracing AI for ad creation, experimenting with emerging platforms, and creating a truly user-first experience, you’re not just keeping up with the trends. You’re setting yourself up to thrive in a more competitive landscape.

The bottom line: This is your chance to get creative, think strategically, and use every tool at your disposal to drive results.

Paid media is evolving, and so should you. Let’s make this the year you push boundaries, test boldly, and grow your impact like never before.

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Featured Image: TarikVision/Shutterstock

Microsoft Launches Multi-Format Campaigns for Audience Ads via @sejournal, @brookeosmundson

Following on the footsteps of Performance Max campaigns, Microsoft Ads launched multi-format campaigns for Audience Ads.

This new feature allows advertisers to create a single campaign that seamlessly integrates various ad formats, including native, display, and online video ads.

Upon its launch, multi-format campaigns for Audience ads are available globally and now the default selection when creating a new Audience ads campaign.

Benefits of Multi-Format Campaigns

The new campaign type comes with several advantages to advertisers, including:

  • More cohesive campaign management: You now only need one audience ads campaign for different ad formats across display, native, and video. Previously, you would’ve needed to set up different campaigns for each ad format.
  • Easier budget management: You can manage and optimize your campaign budget across the different ad formats all within one campaign.
  • Continued flexibility: The ability to create separate campaigns for different ad formats still exists, giving your account the flexibility it needs to optimize according to its goals.

How to Set Up A Multi-Format Campaign

In order to use multi-format campaigns, you need to choose a campaign objective of either of the following:

  • Drive conversions
  • Generate leads
  • Build brand awareness
Microsoft Ads goal selection during campaign creation.Screenshot taken by author, December 2024.

Then, you’ll choose “Audience” as the campaign type.

Microsoft Audience Ads selection.Screenshot taken by author, December 2024

During the campaign creation process, you can select the different types of ad formats. You can choose just one, or all three ad formats depending on your assets and your goals.

Setting up different ad formats in Microsoft multi-format campaigns.Screenshot taken by author, December 2024

After creating your first ad format, you’ll scroll down to the bottom and either select “continue” or “Save and create another ad” to create the additional ad formats within the same campaign:

Create multiple ad formats in Microsoft Audience ads campaign.Screenshot taken by author, December 2024

After creating all your ad formats, you’ll follow the remainder of the typical campaign steps, like:

  • Targets and locations
  • Budgets and bid strategies
  • Ad group settings

Create A More Cohesive Campaign To Drive Results

This update reflects Microsoft Ads’ commitment to evolving its platform to meet the needs of modern advertisers.

By offering a streamlined, flexible solution for combining ad formats, Microsoft makes it easier for advertisers to reach their audiences across diverse channels without the complexity of managing multiple campaigns.

It’s especially helpful for advertisers with smaller budgets that want to use Audience ads, but don’t have the budget to set up three different campaigns just to use each ad format.

For advertisers looking to maximize efficiency and deliver cohesive messaging across native, display, and video ads, multi-format campaigns provide an innovative solution.

Will you be giving multi-format campaigns a try in 2025?