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Similar Audiences in Google are based on your remarketing audiences.
Google Ads will scan through your remarketing list and using machine learning it will find or generate new audiences who have shown a similar search or browsing behavior to your existing list.
Once this similar audience visits your site they will be excluded from the similar audience and included on the remarketing list instead.
If only 2% of your website visitors convert, the other 98% might not be good visitors for you. So using all users who have ever come to your website as the basis of your similar audience will give you an audience mostly similar to the 98% of people who didn’t convert! You definitely don’t want an audience similar to people who bounced.
Here’s how to fix it.
Wherever possible, if you’re going to use similar audiences, only use similar audiences based on remarketing audiences where the users transacted, added to cart, subscribed, interacted for a minute or did some other activity where they indicated interest in your products and services.
If you don’t have conversion remarketing audiences available (PS. we offer this as a service), you can create a remarketing audience of users who did not bounce, and this will make a much better similar audience for you than just an “all users” similar audience.
Businesses that get the most value from similar audiences are typically transactional, eg ecommerce, hotels and other retail industries with large traffic volumes. This is because Google will be able to create more accurate similar audiences the more members are on your underlying remarketing lists.
This tip and many others are found at https://www.petramanos.com/category/tips/