# Navigating the New Era: Google Ads Audience Targeting in 2026
For years, Google Ads was defined by the search term. You picked a keyword, set a bid, and hoped for the best. But as we move through early 2026, the landscape has shifted fundamentally. We are no longer just targeting words; we are targeting intent, context, and predicted behaviour.
At Local Marketing Group, we’ve seen Brisbane businesses—from boutique law firms in the CBD to manufacturing hubs in Sunshine Coast—struggle to keep up with the pace of these changes. This guide breaks down the latest audience targeting updates and how you can leverage them to master audience targeting to stay ahead of the competition.
1. The State of Play: What’s Changing Right Now?
As of January 2026, the biggest shift is the total integration of Generative AI Audience Signals. Google has moved away from static "In-Market" or "Affinity" categories in favour of dynamic, real-time audience synthesis.
The Sunset of Manual Placements: Google is increasingly automating where your ads appear based on user behaviour rather than specific website lists. Predictive Audiences: Using AI, Google can now identify "High-Value Clusters"—users who haven't searched for your service yet but whose cross-platform behaviour suggests they are 80% likely to convert within 48 hours. Privacy-Centric Tracking: With the final nails in the coffin of third-party cookies, Google’s Topics API and First-Party Data integration are now the primary engines for targeting.
2. Why This Matters for Australian Businesses
The Australian market is unique. We have a high cost-per-click (CPC) in competitive industries like trade services, real estate, and professional services.
For a Brisbane-based business, these updates mean efficiency. In the past, a lot of budget was wasted on "window shoppers." With the latest predictive targeting, Australian SMEs can compete with larger national brands by being more surgical with their spend. If you are a local plumber in Chermside, you don't want to show ads to someone researching DIY tips; you want the person whose behaviour suggests an emergency leak. Proper budget optimisation ensures these high-intent users are prioritised.
3. Practical Steps: What You Should Do Today
You don't need a massive data science team to win. Here is how you can optimise your Google Ads account right now:
Prioritise First-Party Data
Google’s AI is only as good as the data you feed it. Uploading your customer email lists (Customer Match) allows Google to build "Enhanced Conversions" models. This helps the algorithm find people who look and act exactly like your best existing clients.Refine Your 'Audience Signals' in Performance Max
If you’re using Performance Max (PMax) campaigns, don't leave the audience section blank. Provide specific signals: 1. Search Themes: Use your top-performing historical keywords. 2. Competitor URLs: Target users who frequent your competitors' websites. 3. Customer Lists: As mentioned above, this is the strongest signal you can provide.For those in South East Queensland, mastering Performance Max is now essential for maintaining a competitive edge in local search results.
Embrace Broad Match + Smart Bidding
In 2026, "Exact Match" is rarely the best strategy. By using Broad Match combined with Target CPA (Cost Per Acquisition) bidding, you allow Google’s AI to find relevant audiences that you might never have thought to target with specific keywords.4. Common Mistakes to Avoid
Even seasoned marketers fall into these traps:
Over-segmentation: If you split your audiences into too many small groups, Google’s AI won't have enough data to learn. In 2026, "consolidation" is the key to performance. Ignoring Negative Keywords: While we trust the AI, it’s not perfect. Regularly audit your search term reports to ensure you aren't paying for irrelevant traffic. Set and Forget: The Australian market fluctuates. Seasonal trends in Queensland (like the summer storm season or the EOFY rush) require manual adjustments to your audience signals.
5. Connecting to Your Broader Strategy
Audience targeting doesn't exist in a vacuum. It must align with your creative and your landing page. If your Google Ads are targeting a "High-Value Professional" audience, but your website looks outdated or isn't mobile-optimised, your conversion rate will suffer.
Your marketing strategy should be a loop: 1. Identify your best customers. 2. Feed that data into Google Ads. 3. Capture them with a high-converting local landing page. 4. Refine based on the results.
Conclusion
The shift toward AI-driven audience targeting is the biggest leap in digital advertising in a decade. For Brisbane business owners, this is an opportunity to outmanoeuvre competitors who are still stuck in the "keyword-only" mindset. By focusing on first-party data and giving Google’s AI the right signals, you can ensure every dollar of your marketing budget is working toward a measurable return on investment.
Ready to scale your business with cutting-edge Google Ads strategies?
At Local Marketing Group, we specialise in helping Australian SMEs navigate the complexities of digital growth. Whether you're in Brisbane, the Gold Coast, or beyond, our team is here to turn these technical updates into real-world revenue.
Contact Local Marketing Group today for a comprehensive account audit.