Audience Bid Adjustments in Google Ads allow advertisers to modify their bids based on specific audience segments, enabling more precise control over how much they are willing to pay for clicks from different user groups. This feature is particularly valuable when combined with Smart Bidding strate…Audience Bid Adjustments in Google Ads allow advertisers to modify their bids based on specific audience segments, enabling more precise control over how much they are willing to pay for clicks from different user groups. This feature is particularly valuable when combined with Smart Bidding strategies, though it functions differently depending on the bidding approach selected.
When using manual bidding strategies, audience bid adjustments let you increase or decrease your bids by a percentage for specific audience lists. For example, if you have identified that users who previously visited your website are more likely to convert, you can set a positive bid adjustment of 20% to 50% for your remarketing audience. Conversely, you might reduce bids for audiences that historically show lower conversion rates.
Audience segments can include remarketing lists, customer match lists, similar audiences, in-market audiences, affinity audiences, and detailed demographics. Each segment can receive its own bid adjustment ranging from -90% to +900%, giving advertisers significant flexibility in targeting.
However, when Smart Bidding strategies like Target CPA, Target ROAS, or Maximize Conversions are employed, the relationship with audience bid adjustments changes. Smart Bidding algorithms automatically analyze audience signals as part of their machine learning process. They consider user characteristics, browsing behavior, and historical performance data to optimize bids in real-time during each auction.
In Smart Bidding scenarios, manual audience bid adjustments are typically overridden because the algorithm makes its own calculations. The exception is setting a -100% bid adjustment, which completely excludes an audience from seeing your ads.
Best practices suggest layering audiences in observation mode when using Smart Bidding, allowing you to gather performance data across different segments. This data helps inform future campaign strategies and provides insights into which audiences deliver the strongest results for your advertising goals.
Audience Bid Adjustments: Complete Guide for Google Ads Search Certification
What Are Audience Bid Adjustments?
Audience bid adjustments allow advertisers to increase or decrease bids for specific audience segments within their Google Ads campaigns. This feature enables you to bid more aggressively for users who are more likely to convert, or reduce bids for audiences that historically perform poorly.
Bid adjustments can range from -90% to +900%, giving advertisers significant flexibility in how they allocate their budget across different audience types.
Why Are Audience Bid Adjustments Important?
• Improved ROI: By bidding higher on audiences with better conversion rates, you maximize return on ad spend • Budget Efficiency: Lower bids on underperforming audiences help conserve budget for more valuable prospects • Personalized Bidding: Tailor your bidding strategy based on where users are in the customer journey • Competitive Advantage: Outbid competitors for your most valuable audience segments
How Audience Bid Adjustments Work
When you apply an audience bid adjustment, Google multiplies your base bid by the adjustment percentage. For example:
• Base bid: $2.00 • Audience bid adjustment: +50% • Final bid: $2.00 × 1.50 = $3.00
Types of Audiences You Can Adjust:
• Remarketing lists: Previous website visitors or app users • Similar audiences: Users who share characteristics with your existing customers • In-market audiences: Users actively researching products or services • Affinity audiences: Users based on lifestyle and interests • Customer Match: Your uploaded customer data • Demographics: Age, gender, household income, parental status
Audience Bid Adjustments with Smart Bidding
It is essential to understand how audience bid adjustments interact with Smart Bidding strategies:
• When using Target CPA, Target ROAS, Maximize Conversions, or Maximize Conversion Value, manual audience bid adjustments are not applied. Smart Bidding automatically adjusts bids based on audience signals. • For Manual CPC and Enhanced CPC, audience bid adjustments are fully applied as set by the advertiser.
Setting Up Audience Bid Adjustments
1. Navigate to your campaign or ad group 2. Click on the Audiences tab 3. Add your desired audience segments 4. Set the targeting option (Targeting or Observation) 5. Apply bid adjustments to each audience
Observation vs. Targeting: • Observation: Monitor performance and apply bid adjustments while still showing ads to all users • Targeting: Restrict ads to only show to selected audiences
Exam Tips: Answering Questions on Audience Bid Adjustments
1. Remember the bid adjustment range: Questions often test whether you know the limits are -90% to +900%
2. Smart Bidding interaction is key: Expect questions about how audience bid adjustments behave differently with automated vs. manual bidding strategies
3. Know the audience types: Be familiar with remarketing, in-market, affinity, similar audiences, and Customer Match
4. Understand layered adjustments: When multiple bid adjustments apply (device, location, audience), they multiply together
5. Observation mode questions: Remember that Observation allows you to gather data on audiences before committing to bid adjustments
6. Negative adjustments: A -100% bid adjustment is not available; the maximum decrease is -90%
7. Campaign vs. Ad Group level: Know that audience bid adjustments can be set at both levels, with ad group settings taking precedence
8. Focus on conversion-based scenarios: Exam questions often present scenarios where you need to identify which audience deserves higher or lower bids based on performance data