Targeting
Targeting is a mechanism for configuring advertising campaigns that allows ads to be delivered exclusively to audience segments matching specified criteria, including geographic, socio-demographic, and behavioural characteristics, as well as custom audiences such as lookalike audiences and retargeting lists.
Targeting focuses on potential interest in a company's products or services. Segmentation mistakes directly affect campaign economics. An audience that is too narrow quickly becomes saturated and drives up the cost per click, while an audience that is too broad leads to wasted budget on irrelevant users. The effectiveness of targeting depends on continuous A/B testing of audience–creative combinations and on the relevance of the landing page, which must directly address the need or intent generated by the ad.
The key metrics for evaluating targeting performance are cost per lead or acquisition (CPL/CPA), conversion rate (CR), and traffic quality as measured in the CRM.