Google Ads in 2025: Why Audience Targeting Matters More Than Ever
- 4M Digital
- May 7
- 4 min read
Updated: 8 hours ago
Audience targeting isn’t just for Display and Performance Max; it’s a game-changer for Search and Shopping (PLA) campaigns too. With the right approach, you can refine targeting, optimise bids, and increase conversions, ensuring your ads connect with the right people at the right time.
However, with Similar Audiences (Lookalike Segments) now gone and Google’s increasing focus on first-party data and automation, how should advertisers approach audience targeting in 2025?
Let’s break it down.
🔹 Why Use Audiences in Search and Shopping Campaigns?
Unlike Display campaigns, Search and Shopping campaigns are intent-driven, targeting users based on their search queries or product browsing. But layering audience data on top of keyword targeting allows you to:
Prioritise high-value customers – Ensure Google’s Smart Bidding optimises bids for those most likely to convert.
Re-engage previous visitors – Bring back those who didn’t complete a purchase.
Find active buyers – Reach users actively researching similar products or services.
Refine ad messaging – Tailor ad copy based on a user’s relationship with your brand.
🔹 Key Audience Types for Search and Shopping Campaigns
1️⃣ Remarketing Lists for Search Ads (RLSA)
RLSA lets you adjust bids or tailor messaging for users who have previously visited your website but didn’t convert. This is particularly useful for high-value products or services with longer decision-making processes.
💡 Best practice: Create granular audience segments (e.g. cart abandoners vs. homepage visitors) to align messaging with user intent.
🔹 Example: Show a discount code to cart abandoners to incentivise purchase.
2️⃣ In-Market Audiences
In-market audiences allow you to target users actively researching products or services in your category. These users show clear purchase intent, even if they haven’t visited your site yet.
💡 Best practice: Combine in-market audiences with your keyword targeting to prioritise budget for users ready to buy.
🔹 Example: Target “athletic footwear” in-market with keywords like “best running shoes for marathons.”
3️⃣ Customer Match (First-Party Data)
With Google moving towards a privacy-first advertising landscape, first-party data is more important than ever. Customer Match allows you to upload your own customer lists (e.g. email subscribers, past purchasers) and target them across Google Search, Shopping, YouTube, and Gmail.
💡 Best practice: Segment your lists for tailored campaigns (e.g. upselling to existing customers, re-engaging lapsed buyers).
🔹 Example: Create a “Black Friday Shoppers” list and offer them exclusive deals.
4️⃣ Custom Audiences (Intent & Behaviour-Based Targeting)
Custom audiences allow you to build segments based on specific keywords, URLs, and app usage that indicate user intent. This is particularly effective for Shopping campaigns, where buyers may be browsing competitor sites before making a decision.
💡 Best practice: Use competitor brand names and high-intent keywords in your custom audience lists.
🔹 Example: Target users searching for “Competitor X Running Shoes” with your brand’s alternative.
❌ What About Similar Audiences? (Lookalike Segments Are Gone)
Google removed Similar Audiences in August 2023, meaning advertisers can no longer automatically find “similar” users to their existing customers.
🔹 Alternative Strategies:
✅ Use Customer Match for precision.
✅ Expand with in-market and custom intent audiences.
✅ Leverage Google’s automated bidding and audience signals.
🔹 Implementing Audience Targeting in Search & Shopping
1️⃣ Structure Campaigns Around Audience Intent
Your audience segments should align with your marketing funnel:
RLSA – For users already familiar with your brand.
In-market and custom audiences – For new customer acquisition.
Customer Match – For precise targeting based on existing customer data.
2️⃣ Smart Bidding & Audience Signals
With Smart Bidding, manual bid adjustments no longer apply. However, audience signals remain crucial—layering high-value audiences (past purchasers, cart abandoners) provides Google’s algorithm with stronger signals.
❌ Why not bid higher for repeat customers? Instead of increasing bids for existing customers, focus ad spend on new customer acquisition while using email, loyalty offers, and organic channels to re-engage past buyers.
3️⃣ Tailor Ad Messaging
Customise ad copy based on the user’s journey stage. A cart abandoner needs different messaging than a first-time visitor.
🔹 IF functions in ad copy (e.g. different CTAs for returning users vs. new visitors).
🔹 Dynamic keyword insertion (DKI) for ultra-relevant ad copy.
🔹 Feed-driven ad variations for Shopping campaigns.
4️⃣ Continuously Review and Optimise Performance
Regularly review audience performance by monitoring conversion rate, cost per conversion, and ROAS. Optimise based on data and adapt to changes.
💡 Optimisation Tip: If an RLSA segment has a low conversion rate, offer a discount code.
🔹 FAQ:
✅ What is the minimum audience size for Customer Match? Google requires a minimum size for privacy reasons, check their guidelines for the latest requirements.
✅ How often should I update my Customer Match lists? Update regularly, especially if your customer base changes frequently.
🔹 Next Steps Checklist
☑ Review existing Google Ads campaigns and identify audience opportunities.
☑ Start building first-party data lists.
☑ Set up a custom audience based on competitor brand names.
☑ Monitor audience performance weekly.
🔹 Final Thoughts
Audience targeting is no longer optional, it’s essential. Advertisers who embrace first-party data and audience layering will maintain a competitive edge. If you’re not using audiences, you’re leaving revenue on the table.
📌 Need help refining your Google Ads audience strategy?
Get in touch with 4M Digital Consulting to ensure your campaigns reach the right people at the right time.
4M Digital is a paid media consultancy specialising in Google Ads, Microsoft Ads, and Paid Social campaigns. With over 15 years of expertise, we help businesses unlock the full potential of their digital advertising strategies through tailored management, audits, and training.
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