Advanced Google Ads Audience Targeting for Home Services
February 24, 2026

It can be like putting together a puzzle when you run a Google Ads campaign. You are getting clicks and your search terms look great, but the number of conversions isn't what you expected.


Kyle from Max Virgin shares a simple but effective way for marketers and business owners to improve their audience targeting, lower their cost per lead, and get the most out of their ads in this episode.


Knowing which groups of people respond best to your ads can make the difference between a campaign that does okay and one that makes a lot of money, whether you're running ads for service-based businesses or e-commerce.

Table of Contents

  1. Why Your Search Terms Might Not Be Enough
  2. Step 1: Leverage Audience Targeting in Google Ads
  3. Step 2: Optimize Bidding Strategy for Lower CPC
  4. Step 3: Avoid Over-Narrowing Your Campaigns
  5. Key Takeaways for High-Performing Campaigns
  6. Conclusion

Why Your Search Terms Might Not Be Enough

A lot of advertisers think that having good keywords and a well-designed landing page will guarantee conversions. 



Kyle says, "Even if your search term is good and your landing page is good, sometimes the ads just don't convert as well as you want them to."


For instance, a moving company might show up for "moving company near me" and get clicks, but if the people who click aren't interested in the service, those clicks won't do anything. It's not just traffic that's important; it's traffic that is ready to convert.

Step 1: Leverage Audience Targeting in Google Ads

Testing audience targeting can make a big difference if you've optimized your keywords but still aren't getting results. Kyle suggests a two-step process:


  1. Begin with Observation Mode - Put relevant audiences in observation mode for your campaigns. This lets you keep an eye on performance without limiting reach.
  2. Change to Targeting for Audiences That Do Well - You can switch to targeted campaigns for those groups once you find audiences that always lead to conversions.


Kyle uses some of the best audience segments, such as:



  • In-Market Segments: People who are actively looking for your service or product, like point-of-sale systems or merchant services.
  • Affinity Segments: These are people who have been interested in a certain category for a long time. They are great for campaigns that want to raise awareness among a wide audience.


It's important to know the difference: in-market users are "ready to buy," while affinity audiences are usually more research-focused but have shown consistent interest.

Step 2: Optimize Bidding Strategy for Lower CPC

Kyle says that the best way to use audience targeting is with a smart bidding strategy:


  • Target CPA and Maximize Conversions are a great pair.
  • In some industries, using AI-powered tools like AIAX can lower CPC by $4 to $5 per click.


Kyle says, "AIAX can do really, really well if people ask a lot of questions about your service."


If your CPC is lower, you can get more leads for the same amount of money. This makes your campaign more effective and gives you a higher return on your ad spend.

Step 3: Avoid Over-Narrowing Your Campaigns

Targeting is a great tool, but it can backfire if you try to reach too few people. Kyle suggests two ways to get more people to see your campaign:



  1. Change the types of keyword matches you use. For example, switch to broad match while keeping negative keywords optimized.
  2. Widen your geographic targeting by adding more locations or making the radius bigger.


For a campaign to be successful, there needs to be a balance between targeted accuracy and audience size.

Key Takeaways for High-Performing Campaigns

  • Strong search terms aren’t enough, target the right audience segments to improve conversions.
  • Test audiences in observation mode before committing to targeting.
  • Combine audience targeting with optimized bidding strategies like Maximize Conversions or Target CPA.
  • Use AI-powered tools for lead generation where applicable to reduce CPC.
  • Always monitor your campaign reach to avoid under-spending due to over-targeting.


For more insights, check out Max Conversion’s Google Ads management services to see how audience optimization can boost your campaigns.

Conclusion

Not just how many people click on your ads, but also who sees them can make the difference between a good campaign and a great one. You can get better leads, lower your cost per lead, and get the most out of your investment by testing audiences, improving targeting, and optimizing bidding.


If you want to get better results from your Google Ads, you can book a free strategy call with Max Conversion.