On March 25, 2023, optimized targeting  will gradually begin replacing targeting expansion  for all display, video, and audio line items in Display & Video 360. By mid-April, optimized targeting will be live for all partners. These changes will be reflected in Display & Video 360 API and Structured Data Files (SDF), and might impact your existing implementation and the success of your requests.
Similar changes were previously announced  and subsequently postponed  late last year, but these rescheduled changes have some important differences. Please read this blog post in its entirety if you use the targetingExpansion 
Changes in the Display & Video 360 API 
Optimized targeting will be configured using the existing targetingExpansion TargetingExpansionConfig LineItem 
The targetingExpansionLevel 
 NO_EXPANSION: optimized targeting is off.
 LEAST_EXPANSION:optimized targeting is on.
   
 Optimized targeting will not automatically be turned on for eligible line items created or updated by the Display & Video 360 API. NO_EXPANSION will be the default value for the targetingExpansionLevel  If you set targetingExpansionLevel LEAST_EXPANSION: 
 SOME_EXPANSION
 BALANCED_EXPANSION
 MORE_EXPANSION
 MOST_EXPANSION
   
 excludeFirstPartyAudience true, it will automatically be reset to false.
If you turn on optimized targeting for an ineligible line item, the request will not return an error and the change will persist. However, you must update the line item to be eligible before it will use optimized targeting when serving.  
We will also update the configurations of existing line items as follows:
The targetingExpansionLevel NO_EXPANSION if one of the following applies: 
 The targetingExpansionLevel  For all other line items, the targetingExpansionLevel LEAST_EXPANSION and, if excludeFirstPartyAudience true, all positive first-party audience targeting will be replaced with negative targeting of the same first-party audiences to ensure the continued exclusion of those audiences. 
 The excludeFirstPartyAudience false.  
To aid in this migration, we are adding a new LineItemWarningMessage DEPRECATED_FIRST_PARTY_AUDIENCE_EXCLUSION will be added to the warningMessages excludeFirstPartyAudience true.
Changes in the Structured Data Files 
Targeting expansion is currently set using the “Audience Targeting - Similar Audiences” column in Line Item  and Insertion Order  SDF formats. These columns will be deprecated when optimized targeting replaces targeting expansion. When downloading SDFs, this column will always be set to FALSE and when uploading SDFs, the value of this column will be ignored.
Eligible line items created using SDF upload will have optimized targeting turned off by default. You will not be able to manage optimized targeting configurations using existing SDF versions and must instead use the Display & Video 360 UI or API.
Upcoming SDF v6 will support optimized targeting configurations. The SDF v6 launch will be announced on the Google Ads Developer Blog  and in the SDF release notes .
Preparing for these changes 
To prepare for these changes, we recommend the following:
Turn on automated bidding for line items currently using fixed bidding with targeting expansion before March 25, 2023  so that they are eligible for optimized targeting.
Update your Display & Video 360 API integration to directly exclude any first-party audiences using audience targeting before March 25, 2023  to account for the deprecation of the excludeFirstPartyAudience Update your Structured Data Files integration to no longer use the “Audience Targeting - Similar Audiences” column in Line Item  and Insertion Order  SDFs before March 25, 2023  to account for the column deprecation. 
If you have questions regarding these changes or need help with these new features, please contact us using our support contact form .