Audience targeting is a digital advertising strategy that uses data to reach specific groups of potential customers online. Audience targeting typically predefines users into specific category groups like demographics, interests, online behaviors, and purchase intent. These shared characteristics are packaged into segments in order to ensure ads reach relevant customers. Audience targeting uses first-party data (from an advertiser’s own customers), third-party data (from external providers), or other AI-driven insights to refine targeting and drive engagement and conversions.