Keywords tell Google what someone is searching for. Audiences tell Google who that person is: a past customer, someone actively shopping for a new car, a new homeowner or a reader who loves home cooking. Combine the two well and the same budget reaches far more of the right people.
The problem is that Google's audience options have been renamed, merged and reshaped many times. Remarketing became "your data", similar audiences were retired, lookalikes arrived in Demand Gen, and Performance Max treats audiences as signals rather than targets. It is easy to end up with segments attached in the wrong mode or not at all.
This guide explains every audience segment type in Google Ads as of 2026, the difference between targeting and observation, how audiences behave in each campaign type, and a step-by-step process for using them effectively.
Key Takeaways
- Google Ads audience segments include affinity, in-market, life events, detailed demographics, custom segments and your data.
- "Remarketing" is now called "your data", which covers website and app visitors and Customer Match lists.
- Google recommends the Observation setting for all Search campaigns, so audiences inform bids without limiting reach.
- Lookalike segments exist only in Demand Gen campaigns.
- In Performance Max, audiences are signals that guide automation, not hard targeting.
Google Ads Audience Segment Types
| Segment type | Google's description | Example use |
|---|---|---|
| Affinity | Reach users based on what they're passionate about and their habits and interests | A running shoe brand reaching running enthusiasts |
| In-market | Reach users based on their recent purchase intent | A dealer reaching people in-market for SUVs |
| Life events | Reach users when they're in the midst of important life milestones | A furniture store reaching people who recently moved |
| Detailed demographics | Reach users based on long-term life facts | A childcare provider reaching parents of toddlers |
| Custom segments | Built by entering relevant keywords, URLs and apps | A B2B software firm reaching people who search competitor names |
| Your data | Reach users that have interacted with your business | Showing an offer to people who abandoned a booking form |
| Google-engaged audiences | Users who previously interacted with your website on Google Search, YouTube or other Google sites | Re-engaging visitors from Google surfaces |
Your data segments in more detail
Google's help documentation notes that "remarketing" is now referred to as "your data". It includes:
- Website and app visitors: people who visited your site or used your app, usually built from Google tag or GA4 audiences.
- Customer Match: your existing customers, matched from CRM data you upload in line with Google's Customer Match policy.
- Lookalike segments: people who share characteristics with a seed list. These are only available in Demand Gen campaigns.
Similar audiences, the older lookalike feature for Search and Display, were retired in 2023. For the strategy behind re-engaging past visitors, see our remarketing campaigns guide and our explainer on retargeting vs remarketing.
Targeting vs Observation
When you add an audience to a campaign or ad group, you choose how Google uses it. This choice matters more than the segments themselves.
- Targeting narrows reach. Ads only show to people in the segments you add (on top of other targeting such as keywords).
- Observation does not restrict reach. Google describes it as letting you monitor and set custom bids for criteria without restricting your reach.
“The 'Observation' setting is recommended for all Search campaigns.”
— Google Ads Help, About targeting and observation settings
For Display, Google recommends targeting, while suggesting that more advanced advertisers use observation first and then set targeting based on what they learn. On Search, observation lets you see whether, say, past visitors or in-market segments convert better, without cutting off new customers who are not in any list.
How Audiences Work by Campaign Type
| Campaign type | How audiences are used | Tip |
|---|---|---|
| Search | Usually observation; targeting possible for tightly defined lists | Add your data and in-market segments in observation to learn first |
| Display | Targeting, often with optimized targeting expanding reach | Exclude converters to avoid paying to reach existing customers |
| Demand Gen | Targeting, including lookalike segments | Seed lookalikes with your best customer list; see our Demand Gen guide |
| Video (YouTube) | Targeting across all segment types | Custom segments built from competitor searches work well; see YouTube ads |
| Performance Max | Audience signals that guide, not restrict | Use Customer Match and custom segments as the strongest signals |
In Performance Max, the audience signals you add help Google's automation find likely converters faster, but ads can and will reach people outside them. Our Performance Max guide covers signals in detail.
Audiences and Broad Match Search
Audiences now interact with keywords in less obvious ways. Google explains that broad match can use signals such as a person's recent search activity when deciding which searches are relevant, and that it is critical to use Smart Bidding with broad match. Smart Bidding itself takes many signals into account at auction time. Adding audiences in observation gives you visibility into how those groups perform. For more on matching, see our guide to keyword match types.
How to Set Up Google Ads Audiences: Step by Step
- Define your customer first. Write down who buys, why and what they search for. Our guides to your target audience and buyer personas help.
- Build your data foundations. Make sure the Google tag or GA4 is collecting visitors and that your consent setup is correct; in the EEA and UK this includes Consent Mode.
- Create your data segments. All visitors, key page visitors (pricing, booking), converters and a Customer Match list.
- Create custom segments. Add the keywords, competitor URLs and apps that describe your ideal customer.
- Add segments to Search in observation. Include your data, relevant in-market segments and custom segments.
- Use targeting for Display, Video and Demand Gen. Start with your strongest segments and exclude recent converters where appropriate.
- Review after enough data. Compare conversion rate and cost per conversion by segment, then adjust bids (on manual strategies) or campaign structure.
Common Mistakes
- Using targeting on Search by accident. It can quietly cut reach to a fraction of potential customers.
- Treating Performance Max signals as limits. They guide automation; they do not fence it in.
- Small or stale lists. Lists need enough members to serve and should be refreshed regularly.
- Not excluding converters. Paying to show acquisition ads to existing customers wastes budget.
- Uploading customer data without consent. Customer Match requires compliance with Google's policies and privacy law.
- Adding every segment at once. Too many overlapping segments make results impossible to read.
Related Guides
- Demand Gen Campaigns in Google Ads: A Practical Guide
- Display Advertising: A Beginner’s Guide
- Banner Ad Sizes: The Formats That Perform
Frequently Asked Questions
What are audience segments in Google Ads?
Audience segments are groups of people defined by interests, intent, demographics or past interaction with your business. You add them to campaigns or ad groups to target or observe those people.
Should I use targeting or observation on Search campaigns?
Google recommends the Observation setting for all Search campaigns. It lets you see how segments perform and adjust bids without limiting who can see your ads.
What happened to remarketing lists?
Google now calls them 'your data' segments. They include website and app visitors, Customer Match lists and, in Demand Gen campaigns, lookalike segments.
Are lookalike audiences available in Google Ads?
Yes, but only in Demand Gen campaigns. Lookalike segments reach people who share characteristics with an existing seed list.
How do audiences work in Performance Max?
In Performance Max you add audience signals, which guide Google's automation towards likely customers. They are hints rather than strict targeting, so ads can reach people outside the signals.
Conclusion
Google Ads audiences help you reach the right people, not just the right searches. Learn the segment types, use observation on Search and targeting on visual campaigns, feed Performance Max strong signals and keep your own data clean and compliant. Combined with good keywords and conversion tracking, audiences turn a generic campaign into one that knows who it is talking to.
Want help building an audience strategy for your account? Our PPC management team can set it up and optimise it, or you can request a free quote. If you are just starting out, read our Google Ads beginner's guide and display advertising guide.
