Google Ads audience targeting
90% of audience targeting in Google Ads is wasted effort for search campaigns. Here's the 10% that actually matters — and how to set it up without destroying your reach.
Most audience targeting doesn't matter on search
On search campaigns, keywords already carry the intent signal. Someone searching "best CRM for small business" is telling you exactly what they want. Layering audiences on top rarely changes who converts — it changes how much you pay for them.
The exception is bid adjustments. Adding audiences in observation mode lets you bid 20-50% higher for people who are also in a relevant in-market segment. That is worth doing. Restricting your entire campaign to an audience (targeting mode) is almost never worth it for search.
For search campaigns, ALWAYS use observation mode first. Targeting mode restricts your reach and is almost never worth it for search. We have seen advertisers cut their impressions by 80% overnight by switching to targeting mode too early.
Audiences ranked by value
Not all audiences are created equal. Here is how we rank them for search campaigns, based on what actually moves conversion rates:
1. In-market audiences. These people are actively researching a purchase in your category. Google identifies them based on recent search and browsing behavior. We typically see 10-15% higher conversion rates when layering in-market audiences with bid adjustments. This is the single best audience type for search.
2. Custom intent audiences. You define the search terms and URLs that describe your ideal buyer. Google builds an audience of people who recently searched those terms. This is like building your own in-market segment — more specific than Google's pre-built options. Enter 10-15 competitor names and problem-aware search queries for best results.
3. Customer match. Upload your CRM list (emails, phone numbers) and target those people directly. Great for upselling existing customers or re-engaging churned users. You need at least 1,000 matched users for it to work. Match rates typically land around 30-50% of your list.
4. Remarketing lists (RLSA). Past website visitors who are searching again. These people convert at 2-3x the rate of cold traffic. If you have enough volume, this is free money — bid 50-100% higher for these users.
5. Similar audiences. Google finds people who look like your converters or customer match list. Results are inconsistent — sometimes they work well, sometimes they are no better than broad targeting. Worth testing in observation mode, not worth betting on.
6. Affinity audiences. Long-term interest categories like "outdoor enthusiasts" or "tech savvy." Too broad for search campaigns. These are better suited for display and YouTube where you need reach over precision. On search, they rarely change performance meaningfully.
The right way to layer audiences on search
Step 1: Add 3-5 relevant in-market audiences, your remarketing list, and customer match list — all in observation mode. Do not touch bids yet.
Step 2: Wait 2-4 weeks until you have at least 100 clicks per audience segment. Less than that and the data is noise.
Step 3: Check conversion rates by audience. If an audience converts at 1.5x your average or better, add a +30% to +50% bid adjustment. If one converts at half your average, add a -20% to -30% bid adjustment.
Step 4: Re-evaluate monthly. Audience performance shifts as your campaigns mature and seasonal patterns change. Pair this with a solid campaign structure for the best results.
Demographics: don't exclude without data
We see advertisers exclude entire age groups or genders based on assumptions. "Our product is for millennials, so let's exclude 55+." That is a mistake. A 60-year-old can buy software. A 22-year-old can buy life insurance.
Don't exclude demographics unless you have hard data showing zero conversions after at least 200-300 clicks from that segment. Even then, consider a bid reduction (-30% to -50%) before a full exclusion.
The "Unknown" demographic bucket deserves special attention. Many advertisers exclude it by default, but it often contains your best converters — privacy-conscious users, people in incognito mode, and users whose data Google cannot classify. Never exclude "Unknown."
Audience exclusions that actually save money
Exclusions are more valuable than inclusions for most advertisers. The audiences worth excluding:
Recent converters. If someone just signed up or purchased, stop paying to show them acquisition ads. Create a 30-day post-conversion exclusion list.
Existing customers (if your goal is new customer acquisition). Upload your customer list via customer match and exclude it from acquisition campaigns. Run separate remarketing campaigns for upsells.
Job seekers and employees. If you notice clicks from your own company domain or people searching "[your company] careers," exclude them. This is especially relevant for B2B advertisers.
How Fullrun handles audience targeting
Fullrun adds relevant in-market and custom intent audiences in observation mode from day one. No guessing — it uses your business category and conversion data to pick the right segments. After 2-4 weeks, it automatically adjusts bids based on actual audience performance. It also sets up post-conversion exclusions so you stop paying for people who already converted.
Frequently asked questions
- What is the difference between observation and targeting mode?
- Observation mode lets you see how an audience performs without restricting who sees your ads. Your ads still show to everyone matching your keywords — you just get extra data. Targeting mode restricts your ads to only people in the audience AND searching your keywords. For search campaigns, use observation 95% of the time. Targeting mode kills your volume and is only worth it when you have months of data proving one audience segment massively outperforms.
- Which audiences work best for search campaigns?
- In-market audiences and custom intent audiences. In-market audiences typically improve conversion rates by 10-15% on search because these people are actively researching purchases. Custom intent audiences let you target people who searched specific terms on Google — essentially building your own in-market segment. Customer match is powerful too if you have a list of 1,000+ emails. Skip affinity audiences for search — they are too broad to move the needle.
- How do I create custom audiences?
- Go to Tools > Audience Manager > Custom audiences. Enter 10-15 search terms your ideal customer would use when researching (not your brand terms — competitor names and problem-aware queries). You can also add competitor URLs. Google will build an audience of people who recently searched those terms. This takes 24-48 hours to populate and needs at least 1,000 users to work on search campaigns.
- Should I exclude demographics from my campaigns?
- Only if you have conversion data proving a demographic segment has zero conversions after significant spend. Don't guess. A 65-year-old can buy SaaS software. A male user can buy products marketed to women. The 'Unknown' demographic bucket often has the best conversion rates because it includes privacy-conscious users who tend to be more tech-savvy. Never exclude 'Unknown.'
- Does Fullrun set up audience targeting?
- Yes. Fullrun adds in-market and custom intent audiences in observation mode from day one so you start collecting data immediately. Once there is enough conversion data (usually 2-4 weeks), it adjusts bids up for high-performing audiences and down for underperformers. It also flags audiences worth switching to targeting mode if the data supports it.
Continue learning
The complete guide to Google Ads
Start from the beginning with how Google Ads works.
Remarketing campaigns
Re-engage visitors who already know your brand with targeted ads.
Conversion tracking
Track which audience segments actually convert into customers.
Google Ads for e-commerce
E-commerce-specific audience strategies for product advertising.