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Why Your Google Ads Audience Signals Are Lying to You

Think audience signals are a 'set and forget' targeting tool? Discover why your current setup might be steering Google's AI toward the wrong customers.

AI Summary

Stop treating Google Ads audience signals as strict targeting 'fences.' Learn why broad interests often attract the wrong leads and how to use first-party data and custom intent to guide Google's AI toward high-value Australian customers.

Imagine you own a high-end landscaping business in Ascot. You’ve just launched a Performance Max campaign, and you’ve dutifully fed Google a list of 'Audience Signals'—interests like 'luxury gardening' and 'home renovation.'

You sit back, expecting the leads to roll in. But two weeks later, your inbox is filled with people looking for $50 lawn mows or DIY advice. What went wrong?

The myth persists that Audience Signals are the same as traditional targeting. They aren't. In 2026, treating them as such is the fastest way to drain your marketing budget. At Local Marketing Group, we’re seeing a massive shift in how Brisbane businesses need to handle these signals to stay profitable.

The most common mistake we see is the belief that Audience Signals act as a 'fence.' In the old days of Google Ads, if you targeted 'Property Investors,' Google only showed your ads to that group.

Today, Audience Signals are merely a suggestion. They are a starting point for Google’s AI to begin its search. Once the algorithm finds a person who converts—even if they have nothing to do with your signal—it will follow that trail instead.

If your conversion tracking is messy, the AI will find 'cheap' converters rather than 'valuable' ones. This is why fixing the gaps in your tracking is more important than the signals themselves. Without clean data, you’re giving a world-class navigator a map with the wrong North.

Many Brisbane business owners think that by adding fifty different interests, they are being 'thorough.' In reality, they are just confusing the machine.

Think of it like training a kelpie. If you give it five different commands at once, it’ll just sit there or bark at a fence post. If you give it one clear direction, it works perfectly.

The Fix: Use 'Custom Intent' based on your competitors' URLs or specific high-intent search terms. Instead of broad 'Interests,' tell Google to find people who have recently searched for your specific service in South East Queensland.

Google’s 'In-Market' segments are based on browsing behaviour, which can be incredibly noisy. Someone might be 'In-Market for Luxury Vehicles' because they spent Saturday night looking at Ferraris they can't afford.

To see real ROI, you must lean into your own data. This is the first-party data shift that separates the winners from the losers in the current Australian market. Uploading your actual customer lists (hashed for privacy) tells Google: "Find more people exactly like these people who have already paid me money."

Effective audience mastery isn't just about who you want; it’s about who you don't want. We recently worked with a Gold Coast boutique hotel that was getting plenty of traffic but low bookings.

By analyzing their signals, we realised Google was targeting 'bargain hunters' because the initial signals were too broad. We implemented a strategy focused on 'Exclusion Signals'—specifically excluding people who frequently search for 'budget' or 'cheap' accommodation.

If you want to stop the wastage and start seeing high-quality leads, follow this three-step audit:

1. Audit your 'Seed' Lists: Are you using your actual customer emails, or just broad Google categories? Your own data is 10x more powerful. 2. Check your Conversion Quality: Are you tracking every 'Thank You' page visit, or are you only tracking high-value lead submissions? If the AI is chasing low-value clicks, your signals won't save you. 3. Refine your Creative: In 2026, your ad creative is a signal. If your images look 'budget,' you will attract budget-conscious customers regardless of your settings. Ensure your landing page experience matches the premium signal you want to send.

You cannot control Google’s AI with a tight grip anymore. You have to guide it with the right breadcrumbs. By moving away from broad interest-based signals and focusing on high-intent search themes and first-party data, you give your campaigns the best chance of success in a crowded Brisbane market.

Stop guessing which buttons to toggle and start feeding the machine the data it actually needs to grow your business.

Ready to stop burning your ad spend? Contact the experts at Local Marketing Group today for a comprehensive audit of your Google Ads strategy.

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