Digital Advertising
Online Ad Targeting: Guidelines for Reaching the Right Customers
We set up audience targeting on every campaign we manage. This guide is for business owners who want their ads seen by likely customers rather than everyone. It covers the main targeting options, how to avoid wasted spend and how to measure each audience. Use it when you plan or review a campaign, so your budget reaches people who buy.
The main targeting options
Every platform offers several ways to choose who sees your ads. Some options focus on who people are, and others focus on what they do. The strongest campaigns combine a few options rather than relying on one. These are the main targeting types.
- Location: towns, postcodes or a radius around your premises.
- Keywords: the searches that trigger your ads on Google and Microsoft Advertising.
- Demographics: age ranges and other broad audience details.
- Interests and behaviours: the topics people engage with on social platforms.
- Retargeting: people who visited your website or engaged with your content.
- Lookalike or similar audiences: new people who resemble your existing customers.
Start with location and intent, because they matter most for local businesses. Add interests or lookalikes once you know which customers convert. Our platform comparison shows which options each platform offers.
How to avoid wasted ad spend
Poor targeting spends budget on people who never become customers. Small leaks add up over a month. Most wasted spend comes from a few common mistakes. Check your campaigns for each one.
- Locations set too wide, so ads show outside the areas you serve.
- Broad keywords that match irrelevant searches, such as jobs or DIY guides.
- No negative keywords to block searches you do not want.
- Audiences so narrow that the platform cannot find enough people.
- Ads running at times when nobody answers the phone.
Review search terms and audience reports every month. Add negative keywords for any irrelevant searches you find. Tighten locations and schedules to match when and where you take work.
How to measure which audiences work
Each audience should earn its share of your budget. Some bring enquiries at a low cost, while others only bring clicks. Measuring them separately shows where to move spend. Follow these steps each month.
- Split key audiences into separate ad sets or campaigns.
- Track enquiries and cost per enquiry for each one.
- Pause audiences that spend without bringing enquiries.
- Increase budget for audiences below your target cost per enquiry.
- Build new lookalike audiences from your best customers.
Keep a record of what you tested and the results. Over time, this record becomes your most valuable targeting asset. Our campaign checklist covers the wider monthly review.
Ad targeting checklist
Use this checklist when you set up or review your targeting. Each item reduces wasted spend or improves results. Check it at every monthly review.
- Locations limited to the areas you serve
- Keywords matched to buying intent
- Negative keywords added for irrelevant searches
- Ad schedule matched to your working hours
- Retargeting audience set up from website visitors
- Audiences split so results can be compared
- Budget moved towards the best-performing audiences
Good to know
Ad targeting FAQs
What is the most effective way to target online ads?+
For local businesses, location and buying intent are the most effective starting points. Keyword targeting on Google catches people searching for your service. Retargeting brings back people who already know your business. Add broader audiences once these are working.
What are negative keywords?+
Negative keywords stop your ads showing for searches you do not want. A plumber, for example, adds "jobs", "course" and "DIY" as negatives. They reduce wasted clicks from people who will never become customers. Review your search terms report to find new ones each month.
How narrow should my targeting be?+
Targeting should be narrow enough to reach likely customers but wide enough for the platform to find them. Very small audiences often fail to spend or become expensive. Start with sensible locations and intent, then refine from real results. Let data guide each change.
Does retargeting work for small businesses?+
Retargeting often brings good results because the audience already knows your business. It reminds website visitors to come back and enquire. It needs enough website traffic to build a useful audience. Keep the ads relevant to the pages people viewed.
Keep this checklist beside your campaign settings. Share it with anyone who adjusts your targeting. So you can reach the customers most likely to buy and stop paying for clicks that never convert.
Last updated