Google Ads audience targeting allows advertisers to show ads to specific groups of users based on their interests, purchase intent, demographics, or prior interactions with the advertiser's business — in addition to or instead of keyword-based targeting. Key audience types include: In-Market audiences (users actively researching specific product categories), Affinity audiences (users with sustained interests in specific topics), Remarketing lists (users who have visited the advertiser's website), Customer Match (users matched to the advertiser's customer database), and Similar audiences to existing lists.
Audience targeting has become central to Google Ads strategy as keyword-based bidding has become increasingly automated. While Smart Bidding handles bid levels, audience signals — particularly for Performance Max campaigns — are the primary way advertisers communicate to Google's algorithms who the ideal customer is. Well-structured audience signals accelerate Smart Bidding learning and improve conversion efficiency.
Google Ads audience types
- In-Market audiences — users Google identifies as actively researching specific purchase categories (e.g. 'Commercial Real Estate', 'Business Software')
- Affinity audiences — users with demonstrated, sustained interest in specific topics; broader than In-Market
- Customer Match — upload customer emails to target existing customers or create Lookalike audiences
- Website visitors — retargeting lists segmented by page visited, visit frequency, or time on site
- Video viewers — retargeting lists of users who interacted with YouTube ads or the YouTube channel
- Similar segments — users who share characteristics with existing remarketing or customer lists
- Life Events — users going through specific life events (moving home, getting married, new job)
- Demographic targeting — age, gender, household income, parental status
Audience layers can be applied to keyword-based campaigns in two ways: 'observation' (bid adjustments for specific audiences without restricting who sees the ad) and 'targeting' (restricting ad delivery to only the specified audience). Observation mode reveals which audience segments convert better, enabling bid adjustments (e.g. increase bids 20% for in-market B2B audiences). Targeting mode restricts reach to specified audiences — useful for remarketing campaigns but reduces volume in prospecting campaigns. Most search campaigns use observation to layer intelligence onto broad keyword targeting.
For UK B2B campaigns, the highest-converting Google Ads audiences typically include: In-Market segments for your specific product category (e.g. 'Business Software', 'Marketing Services'), website visitors who viewed pricing or service pages but did not convert (high-intent remarketing), Customer Match lists of existing clients for upsell/cross-sell campaigns, and similar audiences to existing Customer Match lists for lookalike prospecting. LinkedIn Ads generally outperforms Google's B2B audience targeting for job-function targeting, but Google captures the active intent that LinkedIn cannot.