Audience Targeting in SEM
In this module, you will learn how to show your ads to the right people using Audience Targeting in Search Engine Marketing (SEM). Instead of just focusing on keywords, audience targeting helps you reach people based on who they are, what they like, and how they behave online. This makes your ads more relevant and improves your chances of getting clicks and sales. We will cover the main types of audience targeting, how to set it up in Google Ads, ways to segment your audience, and how to measure and improve your results.
What is Audience Targeting in SEM?
Audience targeting means showing your ads to specific groups of people who are most likely interested in what you sell. Instead of only using keywords (the words people type in Google), audience targeting helps you focus on who the people are—their age, interests, and what they do online.
Example:
If you sell sports shoes, audience targeting lets you show your ads mainly to people who like sports or often buy sports gear, not just to anyone searching for “shoes.”
Types of Audience Targeting
Here are some common ways to choose your audience:
- Demographic Targeting: Show ads to people by age, gender, or location.
Example: Show kids’ toys ads only to parents aged 25-40. - Affinity Audiences: Reach people based on their interests.
Example: Show cooking class ads to people who love cooking shows. - In-Market Audiences: Target people who are ready to buy something soon.
Example: Show car ads to people looking to buy a car this month. - Customer Match: Use your customer list to show ads only to them or exclude them.
Example: Show special offers to your existing newsletter subscribers. - Similar Audiences: Find new people like your current customers.
Example: Show your product ads to people similar to your best buyers.
Setting Up Audience Targeting in Google Ads
Steps to add audience targeting:
- In your Google Ads campaign, go to the Audiences section.
- Choose which audiences you want to reach, like by age or interest.
- Pick Targeting if you want ads only for those groups, or Observation to watch how they behave but show ads to all.
- Combine audience targeting with keywords to be more specific.
- Increase bids to show your ads more to important groups.
Example:
If you run an online course, you can target people aged 18-30 who are interested in learning new skills, and also bid higher to reach more of them.
Audience Segmentation Strategies
Divide your audience into smaller groups for better targeting:
- By Intent: Separate people just browsing from those ready to buy.
- By Behaviour: Group based on actions like website visits.
- Layering: Mix different filters like age + location + interests.
- Exclusion: Remove people who don’t need your ads, like current customers.
Example:
If you sell gym memberships, target new users interested in fitness but exclude your current members to save budget.
Measuring and Optimizing Audience Performance
Keep track of these numbers to see if your audience targeting works:
- Click-Through Rate (CTR): How many people clicked your ad.
- Conversion Rate: How many took your desired action (buy, sign up).
- Cost Per Acquisition (CPA): How much it costs you to get one customer.
- Return on Ad Spend (ROAS): How much money you make for each dollar spent.
Use this info to:
- Increase bids for groups that perform well.
- Change audience groups that don’t perform.
- Test different ads for different groups.
Example:
If women aged 25-35 have a higher conversion rate for your skincare product, increase bids to show your ads more to them.
Summary
- Audience targeting in SEM means showing ads to specific groups based on who they are (age, interests, behaviour) instead of only keywords.
- Common types include demographic targeting, affinity audiences, in-market audiences, customer match, and similar audiences to reach the right people.
- Set up audience targeting in Google Ads by selecting audiences, choosing targeting or observation mode, combining with keywords, and adjusting bids for better reach.
- Measure performance using CTR, conversion rate, CPA, and ROAS, then optimize by increasing bids for high-performing groups and refining or excluding low-performing ones.
Real Life Example:
Imagine you own a small bakery in your neighbourhood. You just launched a new website but no one knows about it yet. You want customers who are searching online for “fresh cakes near me” to find your bakery quickly. Instead of waiting months for your website to appear in Google’s organic results, you create a Google Ads campaign targeting that exact phrase.
Within hours, your ad shows up at the top of the search results, right where hungry customers are looking. When they click your ad and visit your website, they can place orders immediately. This instant visibility brought by SEM helps your bakery get noticed and make sales faster than waiting for SEO to take effect.
Now, to make your ads even more effective, you decide to use Audience Targeting in your SEM campaign:
- You use Demographic Targeting to show your ads mostly to people aged 25-45 who live within 10 kilometres of your bakery—your ideal local customers who are more likely to order cakes.
- You add Affinity Audiences to reach users interested in baking, cooking shows, or food blogs, since they may be more interested in fresh, homemade cakes.
- You apply In-Market Audiences to target people who recently searched for “birthday cakes,” “party desserts,” or “cake delivery,” indicating they are ready to buy.
- You use Customer Match by uploading your existing customer email list, so you can show special discount offers to loyal customers and encourage repeat orders.
- You expand your reach with Similar Audiences to find new potential customers who have similar interests and behaviours as your best existing buyers.
By combining these audience types with your keyword targeting, your bakery’s ads become much more relevant and show only to people who are likely to buy. For example, when a busy parent in your neighbourhood searches for “fresh cakes near me” on their phone, they see your ad with a special offer for family-sized cakes, making them more likely to click and order.
Results:
- Your ads get a higher click rate because they are reaching the right people.
- More visitors convert into orders because the ads speak directly to their needs.
- You save money by not showing ads to people far away or uninterested in cakes.
- Your bakery’s sales grow steadily as you build a loyal local customer base through targeted promotions.
This example shows how Audience Targeting in SEM helps a small local business like your bakery reach the right audience, increase sales, and get the best return on advertising spend.
