The Shift from Keywords to Intent: Google Ads in 2026
For years, the mantra for Brisbane business owners running Google Ads was simple: find the right keywords, set a bid, and wait for the phone to ring. However, as we move through early 2026, the landscape has shifted fundamentally. We are no longer just targeting what people type; we are targeting who they are and why they are searching.
Google’s recent updates have accelerated the transition toward AI-driven audience signals. With the total phase-out of third-party cookies now a reality, the way we identify and reach potential customers in Queensland and across Australia has changed. If your account is still relying on legacy targeting methods, you’re likely overpaying for underperforming traffic.
What’s Changing in Audience Targeting Right Now?
As of January 2026, several key developments have redefined Google Ads strategy:
1. The Rise of 'Predictive Audiences'
Google’s AI now uses machine learning to predict which users are likely to convert within the next seven days based on subtle behavioural patterns. For an e-commerce store in Fortitude Valley or a service provider in the Gold Coast, this means the system can prioritise users who haven't even searched for your specific brand yet but are exhibiting 'ready-to-buy' signals.2. Enhanced Conversions and First-Party Data
Privacy-centric marketing is the new standard. Google has doubled down on Enhanced Conversions, which allows businesses to use their own hashed customer data (emails, phone numbers) to improve tracking accuracy. This is a direct response to the Australian Privacy Act updates, ensuring businesses stay compliant while maintaining high-performance tracking.3. Broad Match + Audience Signals = The New 'Exact Match'
In the past, 'Broad Match' was seen as a way to waste money. In 2026, when paired with strong audience signals (like your remarketing lists or customer match lists), Broad Match has become the most effective way to scale. The AI uses the audience data to filter out the irrelevant 'broad' searches, focusing only on high-intent users. This shift is a core part of the latest Google Ads audience updates designed for local businesses.Why This Matters for Australian Businesses
The Australian digital market is uniquely competitive. With a smaller population than the US or UK, the Cost Per Click (CPC) in industries like real estate, legal services, and home renovations in Brisbane can be incredibly high.
Australian SMEs cannot afford to waste budget on 'looky-loos'. By mastering these audience updates, you can: Lower your Acquisition Cost: Stop bidding on users who are just researching and focus on those in the 'decision' phase. Compete with Bigger Brands: You don't need the biggest budget; you need the smartest data. Smaller Brisbane firms are currently outperforming national franchises by leveraging their local first-party data more effectively. Future-Proof Your Marketing: As privacy laws in Australia tighten, businesses that build their own 'data moats' will thrive while others struggle to find their audience.
Practical Steps You Can Take Right Now
1. Audit Your First-Party Data: Ensure your CRM is clean. Segment your customers into 'High Value,' 'Lapsed,' and 'Frequent Buyers.' Uploading these as Customer Match lists gives Google the 'seed' data it needs to find similar people. 2. Implement Consent Mode v3: Ensure your website is communicating correctly with Google regarding user privacy preferences. This is no longer optional for businesses wanting to use advanced audience features. 3. Test Demand Gen Campaigns: Move beyond just Search. Use Google’s new Demand Gen campaign types to reach audiences on YouTube and Discover using visually rich assets tailored to specific audience segments. 4. Refine Your 'Search Themes' in PMax: If you are using Performance Max, don't leave it to chance. Use the 'Search Themes' feature to provide the AI with specific directions on which audiences are most valuable to your Brisbane business. You can learn more about this in our guide to mastering Google Performance Max.
Common Mistakes to Avoid
Set and Forget: The biggest mistake we see at Local Marketing Group is business owners treating AI-driven targeting as 'autopilot.' The AI needs constant feedback. If you don't feed it high-quality conversion data, it will optimise for the wrong actions. Ignoring Negative Audiences: Just as important as who you target is who you exclude. Are you excluding your current customers from your 'new lead' campaigns? If not, you’re paying to reach people you already have. Over-segmenting: While targeting is precise, creating too many tiny audience segments can starve the AI of the data it needs to learn. Aim for a balance of precision and scale. This is a critical component of smart spending and budget optimisation in the current landscape.
Connecting to Your Broader Strategy
Audience targeting doesn't exist in a vacuum. It must align with your creative and your offer. If you are targeting a 'High-Value' audience in Ascot or Paddington, your ad copy and landing page experience must reflect that premium positioning.
In 2026, the most successful Australian businesses are those that treat Google Ads as one part of a holistic ecosystem—where first-party data from email marketing, social media engagement, and website visits all feed back into the Google Ads engine to create a seamless customer journey.
Conclusion
The era of 'guessing' who your customer is has ended. With the latest Google Ads audience updates, Brisbane businesses have more power than ever to reach the right person at the exact moment of intent. By focusing on first-party data and embracing AI-driven signals, you can turn your advertising from a cost centre into a predictable growth engine.
Ready to dominate the Brisbane market with precision targeting?
At Local Marketing Group, we specialise in helping Australian SMEs navigate the complexities of modern digital advertising. Let’s look under the hood of your current Google Ads account and see where you’re leaving money on the table.
Contact Local Marketing Group today for a comprehensive audit of your digital strategy.