How to Set Up Google Display Effectively?

Alexandre Airvault
January 19, 2026

Part 1: Set Yourself Up to Win Before You Touch Campaign Settings

Start with one clear job for Display: prospecting, remarketing, or both (but not in one ad group)

“Effective” Google Display setup isn’t about toggling every option on. It’s about aligning the campaign with one primary role in the customer journey. Display can absolutely drive direct response, but it behaves differently than Search: you’re reaching people while they browse, watch, and scroll—so you need cleaner structure and stronger guardrails.

If you’re new to Display, I recommend you split your efforts by intent from day one: one campaign (or at least separate ad groups) for remarketing, and another for prospecting. Mixing them usually muddies your reporting, confuses automated bidding, and makes it harder to control reach and frequency.

Conversion tracking first: the campaign can’t optimize to what you don’t measure

Before you launch, set up website conversions so you can (1) see what Display is actually driving and (2) unlock conversion-based bidding without flying blind. The current conversion setup flow supports scanning your site to detect an existing tag, connecting via an existing analytics setup when available, or installing a sitewide tag and defining events.

In practical terms, aim to track at least one “lower-funnel” conversion (purchase, qualified lead, or a true completed inquiry). If you also want to track micro-conversions (page views, time on site, add to cart), keep them—but don’t automatically let them become the main thing your bidding optimizes for.

Choose what the campaign should bid toward: account-default goals vs campaign-specific goals

Google Ads now makes it much easier to decide which conversion goals a specific campaign should optimize toward. You can keep the campaign on your account-default conversion goals, or switch to campaign-specific goals (including custom goals) so Display is judged on what it’s truly responsible for.

This matters because the “Conversions” column (and Smart Bidding optimization) follows whatever goals you assign to that campaign. If Display is top-of-funnel for you, you might still report on softer actions—but if you want efficient lead volume or revenue, your bidding should be tied to the conversion actions that represent real business value.

Pre-launch checklist (the few items that prevent most wasted spend)

  • Confirm at least one primary conversion action that represents real value (purchase/lead), and make sure it’s eligible for bidding.
  • Verify the tag is firing (especially on thank-you pages or after form submits), and avoid duplicate tags that double-count conversions.
  • Decide whether you need remarketing lists (you usually do) and ensure your sitewide tagging supports building them.

Part 2: Build the Display Campaign Correctly (Settings That Actually Matter)

Create the right campaign type (Standard Display) and don’t rush the goal selection

When you create a new campaign, choose an objective that matches what you want Display to do—Sales, Leads, Website traffic, or Brand awareness and reach (or create without goal guidance if you prefer full control). Then select Display as the campaign type and Standard Display as the subtype. You’ll also provide your final URL and name the campaign.

One important platform change: legacy “Smart Display” campaigns have been automatically migrated into the newly simplified Display experience. So if you’re referencing older tutorials, the workflow and naming may not match what you see today.

Locations, languages, and scheduling: keep them tight enough to be true

Location and language choices are not “background settings” on Display—they’re your first layer of relevance control. Pick the geographic areas you truly serve and use exclusions when needed (for example, targeting a whole country but excluding a state or city you can’t support). Set languages you can actually write ads and landing pages for; mismatched language targeting is an easy way to pay for low-quality traffic.

Ad scheduling is optional, but if you restrict hours, remember you’re reducing learning opportunities for automated bidding. If you have a call center or limited sales coverage, schedules can help—just don’t cut your reach so aggressively that the campaign never gathers enough conversion data.

Budget and bidding: match the bid strategy to the maturity of your data

Your daily budget is an average, and monthly spend can flex up to a multiple based on average days per month. That’s normal behavior, not a billing glitch—so set budgets with that variability in mind.

For bidding, Display supports a mix of strategies. The most common “performance” path is conversion-based Smart Bidding (such as Maximize conversions or Target CPA). If you’re earlier-stage and primarily want traffic, Maximize clicks can be a sensible starting point. If you’re running more awareness-style programs, viewable CPM can be useful when you care about measurable, viewable impressions rather than clicks.

A simple rule from years of account management: if you don’t have stable conversion tracking (or you’re tracking the wrong thing), don’t expect conversion-based bidding to magically fix it. Get measurement right, then lean into automation.

Frequency management: stop paying to annoy the same people

Frequency capping is one of the most overlooked “profit levers” in Display. You can let the system optimize frequency, or you can set a manual cap to limit how many viewable impressions the same person gets over a day, week, or month. On Display, only viewable impressions count toward frequency caps, and the setting is adjusted from the campaign’s Frequency management section after the campaign is created (it’s not something you can typically finalize during the initial creation flow).

If you’re doing remarketing, frequency control is especially important. Remarketing without frequency discipline is one of the fastest ways to burn budget while hurting brand perception.

Brand suitability and content controls: protect performance and reputation at the same time

Display gives you multiple layers of control to avoid showing next to content that doesn’t fit your brand. At a high level, you can use inventory-type style suitability settings (expanded/standard/limited) to define how conservative you want to be. Then you can apply additional exclusions (content types, themes, labels, and placement exclusions) depending on where your ads can serve.

Also note a key workflow simplification: contextual targeting and exclusions are now managed in a consolidated “Content” area, where you can work with topics, placements, display/video keywords, and exclusions in one place. This reduces the “where did that setting live?” problem and makes audits faster.

Part 3: Targeting + Creative That Performs (and Doesn’t Accidentally Go Broad)

Targeting strategy: understand the difference between “Targeting” and “Observation”

In Display, “Targeting” restricts where and to whom your ads can show. “Observation” lets you monitor performance for certain criteria without narrowing reach. Here’s the nuance many advertisers miss: if you create a Display ad group and don’t add a targeting method, your ads can run broadly across the eligible network, limited mainly by your campaign/account settings like locations, languages, and content exclusions. In most accounts, that’s far too open-ended.

Use Observation when you want insights (and possibly bid adjustments) without limiting delivery. Use Targeting when you want control and intentionality—which is the default recommendation for most Display advertisers.

Optimized targeting: treat it like a growth lever, not a default you ignore

Optimized targeting is available for Display campaigns and can be turned on or off at the ad group level. When it’s enabled, you can optionally provide “signals” (like audience segments, customer lists, keywords, and topics) to guide the system, and it can still expand beyond those signals to find additional converters.

In practice, I use optimized targeting in two main scenarios. First, prospecting campaigns where the goal is to find net-new customers efficiently (and conversion tracking is solid). Second, when we have strong first-party signals (like customer lists) and want to scale beyond them. If you have a strict need to limit reach (certain compliance categories, very tight B2B targeting, highly sensitive brand constraints), you may choose to turn it off and rely on explicit targeting instead.

Contextual targeting: know how topics/placements/keywords behave now

Contextual targeting on Display has become simpler—and that affects how your campaigns serve. If you target multiple contextual methods (like topics and placements and display/video keywords), your ads can show on content that matches any of the targeted criteria, not only pages that match all criteria at once. This is great for reach, but it can surprise advertisers who expected “stacking” to narrow traffic.

My recommendation: keep ad groups “pure.” Build one ad group around topics, another around placements, another around keyword-based contextual, and compare performance cleanly. You’ll learn faster and you’ll avoid accidental overreach.

Responsive Display Ads: build enough assets for the system to do its job

Responsive Display Ads are the core ad format in modern Display campaigns. Instead of uploading a single fixed banner, you provide a set of assets (images, logos, headlines, descriptions, optional video), and the system assembles combinations across placements.

If you want responsive ads to perform, you must feed them enough variety. A strong baseline is multiple images, multiple headlines, multiple descriptions, and at least one logo (ideally in more than one aspect ratio). From a creative quality perspective, avoid heavy text overlays on images, avoid collage-style images, and keep logos cleanly cropped and centered. If you don’t provide a logo, the system can substitute a neutral icon or letter-based treatment—which usually isn’t what you want for brand recall.

Asset specs that prevent disapprovals and “low coverage” delivery

Most “my Display campaign isn’t spending” issues I diagnose come down to incomplete asset coverage. Use the recommended image shapes and sizes so your ads can render across inventory without awkward cropping. The commonly used requirements include a horizontal marketing image (1.91:1) and a square marketing image (1:1), plus optional logo formats (1:1 and 4:1). File-size limits and maximum counts apply, and responsive display ads support multiple images and multiple logos so you can test creative themes rather than a single look.

Launch expectations: approval and reporting delays are normal—plan for them

After publishing, it can take a few days for Display to fully start serving consistently, especially with new accounts, new creatives, or fresh conversion setups. Ad approvals often happen within one business day, and Display reporting can lag—sometimes taking up to 72 hours before you see complete data in the interface. That delay can make new advertisers overreact; don’t “optimize” a campaign that hasn’t had a fair chance to serve and record results.

Troubleshooting checklist (only the highest-impact checks)

  • No impressions: confirm you added real targeting (or intentionally chose broad delivery), confirm location/language aren’t too restrictive, and confirm ads are approved.
  • Impressions but poor clicks: refresh images (stronger contrast, clearer subject), improve headline clarity, and separate ad groups by targeting type to find what’s dragging performance down.
  • Clicks but no conversions: verify conversion tracking, tighten targeting, and audit landing page speed/message match before blaming bidding.
  • Remarketing too “creepy” or too expensive: implement frequency caps and refresh creative more often; remarketing fatigue is real on Display.

Let AI handle
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Area Best‑practice summary Key settings / checks in Google Ads Helpful Google Ads documentation
Display’s job in your funnel Give each Display effort one clear role: prospecting or remarketing, not both in the same ad group. This keeps reporting clean, helps Smart Bidding understand intent, and lets you control reach and frequency separately for cold vs warm users. • Use separate campaigns or at least separate ad groups for prospecting vs remarketing (“your data” lists).
• Avoid mixing very different intents under one budget and bid strategy.
Use data segments (remarketing) in campaigns([support.google.com](https://support.google.com/google-ads/answer/7067580/use-google-ads-editor-to-set-up-remarketing-campaigns?utm_source=openai))
Conversion tracking & goals Get conversion tracking working before launch and optimize only to actions that represent real business value (purchases, qualified leads, high‑intent inquiries). Track micro‑conversions if useful, but don’t let them become the main optimization goal. • In Goals & conversions, create web conversions and install / verify the Google tag.
• Define at least one lower‑funnel conversion and set it as a primary goal for bidding.
• Use secondary goals for softer actions you only want to observe.
Set up your web conversions([support.google.com](https://support.google.com/google-ads/answer/9119707?utm_source=openai))
Pre‑launch measurement checklist Most wasted Display spend comes from broken or misaligned measurement. Confirm conversions, tags, and remarketing lists are functioning before spending meaningful budget. • Confirm at least one primary conversion is set to “Primary” and eligible for bidding.
• Use tag diagnostics / status to ensure the tag is firing on thank‑you or confirmation pages and not duplicated.
• Ensure a sitewide tag is in place so you can build remarketing (data) segments.
Check your Google tag and conversion status([support.google.com](https://support.google.com/google-ads/answer/9119707?utm_source=openai))
Campaign type & objective Use the modern Display > Standard display campaign workflow. Choose an objective (Sales, Leads, Website traffic, or Brand awareness & reach) that matches how you’ll judge success. • New campaign → choose a goal or “Create a campaign without a goal’s guidance”.
• Select Display as type and Standard display campaign as subtype.
• Provide final URL and a clear, structured campaign name (e.g., “US – Display – Prospecting – MaxConv”).
Create a Display campaign([support.google.com](https://support.google.com/google-ads/answer/10759203?hl=en&utm_source=openai))
Locations, languages, schedule Treat geo and language as core relevance filters, not background settings. Keep them tight to where you can actually sell and support customers. • In campaign settings, choose only countries / regions you truly serve; use location exclusions to remove areas you can’t support.
• Target only languages you can serve with ad copy and landing pages.
• Use ad scheduling if your sales process requires it, but remember restricted hours slow down learning.
Campaign settings for locations, languages, schedule([support.google.com](https://support.google.com/google-ads/answer/10759203?hl=en&utm_source=openai))
Budget & bidding strategy Set budgets with daily variation and learning in mind. Match bidding to your data maturity: use conversion‑based Smart Bidding only when conversion tracking is solid; otherwise start with simpler strategies. • Daily budget is an average; Google may spend more on some days and less on others but aims for ~30.4 × daily budget per month.
• Common Display strategies:
  – Performance: Maximize conversions or Target CPA (Smart Bidding).
  – Early‑stage / traffic: Maximize clicks.
  – Awareness: Viewable CPM when you care about viewable impressions.
• Avoid Smart Bidding if you’re optimizing to weak or broken conversions.
Budgets and bidding for Display campaigns([support.google.com](https://support.google.com/google-ads/answer/10759203?hl=en&utm_source=openai))
About Smart Bidding strategies([support.google.com](https://support.google.com/google-ads/answer/7065882/about-smart-bidding?hl=en-GB&utm_source=openai))
Frequency management Frequency caps prevent you from over‑exposing the same user and wasting remarketing budget. On Display, only viewable impressions count toward caps. • After creating the campaign, use the Frequency management section to set a cap (per day / week / month) for viewable impressions per user.
• Use stricter caps on remarketing lists to prevent “creepy” ad repetition and control cost per user reached.
• Frequency controls are configured within Display campaign settings; see campaign‑level settings in Create a Display campaign([support.google.com](https://support.google.com/google-ads/answer/10759203?hl=en&utm_source=openai))
Brand suitability & content controls Protect both performance and brand safety by excluding unsuitable inventory and using the modern content controls UI. Display now consolidates contextual targeting and exclusions in one Content area. • In campaign creation (or later under Content), set content exclusions and inventory style so your ads avoid inappropriate or off‑brand content.
• Use digital content labels, sensitive content, and content type exclusions; add placement and topic exclusions where needed.
• Consider setting account‑level content suitability so all Display campaigns inherit a baseline standard.
Set content exclusions for Display campaigns([support.google.com](https://support.google.com/google-ads/answer/7444288?hl=en&utm_source=openai))
About content suitability([support.google.com](https://support.google.com/google-ads/answer/12764663?hl=en&utm_source=openai))
Targeting vs Observation “Targeting” narrows where and to whom your ads can show; “Observation” just collects data (and allows bid adjustments) without restricting reach. For most Display advertisers, you should intentionally apply targeting—an ad group with no targeting can run very broad. • At the ad group level, use audience, topic, keyword, or placement Targeting when you want control over who sees your ads.
• Use Observation when you want to see performance (and maybe adjust bids) for certain audiences or content without limiting delivery.
• Remember: if you add no targeting to a Display ad group, it can serve widely across eligible Display & YouTube inventory within your account‑level settings.
About Targeting and Observation settings([support.google.com](https://support.google.com/google-ads/answer/7365594?hl=en-tt&utm_source=openai))
Select targeting and observation settings([support.google.com](https://support.google.com/google-ads/answer/7374253?hl=en&utm_source=openai))
Optimized targeting Treat optimized targeting as a growth lever. It uses your signals (audience segments, keywords, topics, first‑party data) to find additional converters beyond your explicit targeting, which is powerful for prospecting when conversion tracking is reliable. • At the ad group level, expand the Optimized targeting section and turn it on/off based on your risk tolerance and goals.
• Provide strong signals (customer lists, high‑quality audience segments, contextual cues) rather than leaving it unguided.
• Consider turning it off for tightly regulated or highly sensitive categories where strict reach control is required.
About optimized targeting([support.google.com](https://support.google.com/google-ads/answer/10537509?hl=en-A&ref_topic=10532800&utm_source=openai))
Change optimized targeting settings([support.google.com](https://support.google.com/google-ads/answer/10538014?hl=en&utm_source=openai))
Contextual targeting (topics, placements, keywords) Modern contextual targeting is “OR‑based”: if you target multiple contextual types in one ad group, your ads can show on content that matches any of them. Keep ad groups “pure” by type so you can control reach and compare performance cleanly. • Build separate ad groups for:
  – Topics only
  – Managed placements only
  – Display/Video keywords only
• Use the unified Content page to manage topics, placements, Display/Video keywords, and exclusions in one view.
Contextual targeting behavior & placement exclusions([support.google.com](https://support.google.com/google-ads/answer/2454012?hl=en&utm_source=openai))
Set content exclusions for Display campaigns([support.google.com](https://support.google.com/google-ads/answer/7444288?hl=en&utm_source=openai))
Responsive Display Ads (RDA) & assets Responsive Display Ads are the main Display format. Performance depends heavily on having enough high‑quality assets in the right sizes and ratios so the system can assemble strong combinations across inventory. • For each RDA, upload multiple images, headlines, descriptions, and at least one logo; aim for 5+ images, 2+ logos, 5 headlines, 5 descriptions.
• Avoid heavy text overlays and cluttered images; keep logos centered and clean.
• Ensure you meet required image and logo size specs so your ads can serve across placements.
Create a responsive display ad([support.google.com](https://support.google.com/google-ads/answer/7005917?hl=en&utm_source=openai))
Advanced format options and specs for responsive display ads([support.google.com](https://support.google.com/google-ads/answer/9848687?hl=en-EN&utm_source=openai))
Asset specs & coverage Incomplete or non‑compliant assets are a common cause of low or zero spend. Use the recommended aspect ratios (e.g., 1.91:1 and 1:1 images, 4:1 and 1:1 logos) and respect file‑size and count limits so you have broad inventory coverage. • Include at least one horizontal marketing image (1.91:1) and one square marketing image (1:1).
• Provide both square and horizontal logo variants where possible.
• Stay within allowed file sizes and total asset counts per RDA.
Image and logo size requirements for RDAs([support.google.com](https://support.google.com/google-ads/answer/7005917?hl=en&utm_source=openai))
Responsive display ad image specifications([support.google.com](https://support.google.com/google-ads/answer/9848687?hl=en-EN&utm_source=openai))
Launch expectations & learning New Display campaigns often take a few days to start serving consistently. Approvals typically complete within one business day, and reporting can lag up to 72 hours—avoid heavy optimization before the campaign has had time to run and learn. • After publishing, expect a short ramp‑up before impressions stabilize, especially with new accounts or fresh tags.
• Don’t judge performance or make major changes until you have enough spend and conversions for your chosen bid strategy (often at least 1–2 weeks for Smart Bidding).
• Use the Review page warnings to fix blocking issues before launch.
Post‑launch behavior for Display campaigns([support.google.com](https://support.google.com/google-ads/answer/10759203?hl=en&utm_source=openai))
Troubleshooting patterns Diagnose Display issues by moving from delivery to clicks to conversions, adjusting creative, targeting, and measurement in that order rather than immediately blaming bidding. No impressions: Check that the campaign is enabled, has real targeting (or intentionally broad), reasonable bids/budget, valid geo/language settings, and approved ads.
Impressions but weak CTR: Improve imagery and headlines; separate targeting types into different ad groups to find under‑performers.
Clicks but no conversions: Re‑check conversion tracking, tighten targeting, and audit landing pages (speed, relevance) before changing bid strategy.
• Use the campaign “Status” and “Status” columns in conversions to debug issues as documented in Set up your web conversions([support.google.com](https://support.google.com/google-ads/answer/9119707?utm_source=openai))

Let AI handle
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Try our AI Agents now

Once you’ve got the foundations of a solid Google Display setup in place—clear separation between prospecting and remarketing, reliable conversion tracking, sensible geo/language filters, brand-safety controls, and strong Responsive Display Ad assets—the day-to-day work becomes about staying consistent: checking delivery, catching wasted spend, and iterating without overreacting during the learning period. If you want a lighter way to keep those best practices applied over time, Blobr connects to your Google Ads account and uses specialized AI agents to continuously analyze campaigns and surface concrete, prioritized actions (from targeting and budgets to landing-page alignment), while still leaving you in control of what gets changed and when.

Part 1: Set Yourself Up to Win Before You Touch Campaign Settings

Start with one clear job for Display: prospecting, remarketing, or both (but not in one ad group)

“Effective” Google Display setup isn’t about toggling every option on. It’s about aligning the campaign with one primary role in the customer journey. Display can absolutely drive direct response, but it behaves differently than Search: you’re reaching people while they browse, watch, and scroll—so you need cleaner structure and stronger guardrails.

If you’re new to Display, I recommend you split your efforts by intent from day one: one campaign (or at least separate ad groups) for remarketing, and another for prospecting. Mixing them usually muddies your reporting, confuses automated bidding, and makes it harder to control reach and frequency.

Conversion tracking first: the campaign can’t optimize to what you don’t measure

Before you launch, set up website conversions so you can (1) see what Display is actually driving and (2) unlock conversion-based bidding without flying blind. The current conversion setup flow supports scanning your site to detect an existing tag, connecting via an existing analytics setup when available, or installing a sitewide tag and defining events.

In practical terms, aim to track at least one “lower-funnel” conversion (purchase, qualified lead, or a true completed inquiry). If you also want to track micro-conversions (page views, time on site, add to cart), keep them—but don’t automatically let them become the main thing your bidding optimizes for.

Choose what the campaign should bid toward: account-default goals vs campaign-specific goals

Google Ads now makes it much easier to decide which conversion goals a specific campaign should optimize toward. You can keep the campaign on your account-default conversion goals, or switch to campaign-specific goals (including custom goals) so Display is judged on what it’s truly responsible for.

This matters because the “Conversions” column (and Smart Bidding optimization) follows whatever goals you assign to that campaign. If Display is top-of-funnel for you, you might still report on softer actions—but if you want efficient lead volume or revenue, your bidding should be tied to the conversion actions that represent real business value.

Pre-launch checklist (the few items that prevent most wasted spend)

  • Confirm at least one primary conversion action that represents real value (purchase/lead), and make sure it’s eligible for bidding.
  • Verify the tag is firing (especially on thank-you pages or after form submits), and avoid duplicate tags that double-count conversions.
  • Decide whether you need remarketing lists (you usually do) and ensure your sitewide tagging supports building them.

Part 2: Build the Display Campaign Correctly (Settings That Actually Matter)

Create the right campaign type (Standard Display) and don’t rush the goal selection

When you create a new campaign, choose an objective that matches what you want Display to do—Sales, Leads, Website traffic, or Brand awareness and reach (or create without goal guidance if you prefer full control). Then select Display as the campaign type and Standard Display as the subtype. You’ll also provide your final URL and name the campaign.

One important platform change: legacy “Smart Display” campaigns have been automatically migrated into the newly simplified Display experience. So if you’re referencing older tutorials, the workflow and naming may not match what you see today.

Locations, languages, and scheduling: keep them tight enough to be true

Location and language choices are not “background settings” on Display—they’re your first layer of relevance control. Pick the geographic areas you truly serve and use exclusions when needed (for example, targeting a whole country but excluding a state or city you can’t support). Set languages you can actually write ads and landing pages for; mismatched language targeting is an easy way to pay for low-quality traffic.

Ad scheduling is optional, but if you restrict hours, remember you’re reducing learning opportunities for automated bidding. If you have a call center or limited sales coverage, schedules can help—just don’t cut your reach so aggressively that the campaign never gathers enough conversion data.

Budget and bidding: match the bid strategy to the maturity of your data

Your daily budget is an average, and monthly spend can flex up to a multiple based on average days per month. That’s normal behavior, not a billing glitch—so set budgets with that variability in mind.

For bidding, Display supports a mix of strategies. The most common “performance” path is conversion-based Smart Bidding (such as Maximize conversions or Target CPA). If you’re earlier-stage and primarily want traffic, Maximize clicks can be a sensible starting point. If you’re running more awareness-style programs, viewable CPM can be useful when you care about measurable, viewable impressions rather than clicks.

A simple rule from years of account management: if you don’t have stable conversion tracking (or you’re tracking the wrong thing), don’t expect conversion-based bidding to magically fix it. Get measurement right, then lean into automation.

Frequency management: stop paying to annoy the same people

Frequency capping is one of the most overlooked “profit levers” in Display. You can let the system optimize frequency, or you can set a manual cap to limit how many viewable impressions the same person gets over a day, week, or month. On Display, only viewable impressions count toward frequency caps, and the setting is adjusted from the campaign’s Frequency management section after the campaign is created (it’s not something you can typically finalize during the initial creation flow).

If you’re doing remarketing, frequency control is especially important. Remarketing without frequency discipline is one of the fastest ways to burn budget while hurting brand perception.

Brand suitability and content controls: protect performance and reputation at the same time

Display gives you multiple layers of control to avoid showing next to content that doesn’t fit your brand. At a high level, you can use inventory-type style suitability settings (expanded/standard/limited) to define how conservative you want to be. Then you can apply additional exclusions (content types, themes, labels, and placement exclusions) depending on where your ads can serve.

Also note a key workflow simplification: contextual targeting and exclusions are now managed in a consolidated “Content” area, where you can work with topics, placements, display/video keywords, and exclusions in one place. This reduces the “where did that setting live?” problem and makes audits faster.

Part 3: Targeting + Creative That Performs (and Doesn’t Accidentally Go Broad)

Targeting strategy: understand the difference between “Targeting” and “Observation”

In Display, “Targeting” restricts where and to whom your ads can show. “Observation” lets you monitor performance for certain criteria without narrowing reach. Here’s the nuance many advertisers miss: if you create a Display ad group and don’t add a targeting method, your ads can run broadly across the eligible network, limited mainly by your campaign/account settings like locations, languages, and content exclusions. In most accounts, that’s far too open-ended.

Use Observation when you want insights (and possibly bid adjustments) without limiting delivery. Use Targeting when you want control and intentionality—which is the default recommendation for most Display advertisers.

Optimized targeting: treat it like a growth lever, not a default you ignore

Optimized targeting is available for Display campaigns and can be turned on or off at the ad group level. When it’s enabled, you can optionally provide “signals” (like audience segments, customer lists, keywords, and topics) to guide the system, and it can still expand beyond those signals to find additional converters.

In practice, I use optimized targeting in two main scenarios. First, prospecting campaigns where the goal is to find net-new customers efficiently (and conversion tracking is solid). Second, when we have strong first-party signals (like customer lists) and want to scale beyond them. If you have a strict need to limit reach (certain compliance categories, very tight B2B targeting, highly sensitive brand constraints), you may choose to turn it off and rely on explicit targeting instead.

Contextual targeting: know how topics/placements/keywords behave now

Contextual targeting on Display has become simpler—and that affects how your campaigns serve. If you target multiple contextual methods (like topics and placements and display/video keywords), your ads can show on content that matches any of the targeted criteria, not only pages that match all criteria at once. This is great for reach, but it can surprise advertisers who expected “stacking” to narrow traffic.

My recommendation: keep ad groups “pure.” Build one ad group around topics, another around placements, another around keyword-based contextual, and compare performance cleanly. You’ll learn faster and you’ll avoid accidental overreach.

Responsive Display Ads: build enough assets for the system to do its job

Responsive Display Ads are the core ad format in modern Display campaigns. Instead of uploading a single fixed banner, you provide a set of assets (images, logos, headlines, descriptions, optional video), and the system assembles combinations across placements.

If you want responsive ads to perform, you must feed them enough variety. A strong baseline is multiple images, multiple headlines, multiple descriptions, and at least one logo (ideally in more than one aspect ratio). From a creative quality perspective, avoid heavy text overlays on images, avoid collage-style images, and keep logos cleanly cropped and centered. If you don’t provide a logo, the system can substitute a neutral icon or letter-based treatment—which usually isn’t what you want for brand recall.

Asset specs that prevent disapprovals and “low coverage” delivery

Most “my Display campaign isn’t spending” issues I diagnose come down to incomplete asset coverage. Use the recommended image shapes and sizes so your ads can render across inventory without awkward cropping. The commonly used requirements include a horizontal marketing image (1.91:1) and a square marketing image (1:1), plus optional logo formats (1:1 and 4:1). File-size limits and maximum counts apply, and responsive display ads support multiple images and multiple logos so you can test creative themes rather than a single look.

Launch expectations: approval and reporting delays are normal—plan for them

After publishing, it can take a few days for Display to fully start serving consistently, especially with new accounts, new creatives, or fresh conversion setups. Ad approvals often happen within one business day, and Display reporting can lag—sometimes taking up to 72 hours before you see complete data in the interface. That delay can make new advertisers overreact; don’t “optimize” a campaign that hasn’t had a fair chance to serve and record results.

Troubleshooting checklist (only the highest-impact checks)

  • No impressions: confirm you added real targeting (or intentionally chose broad delivery), confirm location/language aren’t too restrictive, and confirm ads are approved.
  • Impressions but poor clicks: refresh images (stronger contrast, clearer subject), improve headline clarity, and separate ad groups by targeting type to find what’s dragging performance down.
  • Clicks but no conversions: verify conversion tracking, tighten targeting, and audit landing page speed/message match before blaming bidding.
  • Remarketing too “creepy” or too expensive: implement frequency caps and refresh creative more often; remarketing fatigue is real on Display.