When people think of Google advertising, they usually picture search ads that appear at the top of Google results. But another major part of Google’s advertising system is the Google Display Network (GDN), which reaches over 90% of internet users across millions of websites, apps, and YouTube channels. Display advertising doesn’t rely on keyword searches the same way search ads do. Instead, Google uses a wide range of targeting methods to show visual ads to people based on their interests, behavior, and previous online activity. Understanding how Google Display targeting works helps advertisers reach the right audience at the right moment.

Display targeting is built on two main categories: audience targeting and content targeting. Audience targeting focuses on who the user is, while content targeting focuses on where the ad appears. Together, they allow advertisers to create campaigns that reach highly specific groups of people.

Audience targeting includes several types.
Affinity audiences group users based on long-term interests such as sports fans, food lovers, or travel enthusiasts. These audiences are good for brand awareness.
In-market audiences target people actively researching or comparing products. Google uses real-time browsing behavior to identify users who are “in the market” for things like auto insurance, apartments, or fitness equipment.
Custom audiences give advertisers even more control by allowing them to define audience groups based on keywords, URLs, or apps that their ideal customers might interact with.

Another audience type is remarketing, which targets users who have already visited a website. Remarketing is extremely effective because it keeps your brand visible to people who previously showed interest. If someone browses a product but doesn’t make a purchase, your display ads can follow them across the web to remind them of what they viewed. Studies from AdRoll and Google show that remarketing ads significantly increase return visits and conversions.

Content targeting works differently. Instead of focusing on user behavior, Google chooses placements based on the website content. Advertisers can target topics (like fitness or home improvement), specific placements (individual websites or YouTube channels), or keywords related to the content of the page. This is helpful when trying to reach people consuming information related to your industry. For example, a real estate agent might place ads on websites discussing mortgage tips or neighborhood guides.

Google’s ability to identify users and categorize them relies on massive amounts of anonymized behavioral data. This includes browsing history, YouTube engagement, mobile app usage, and search habits. Google doesn’t reveal every detail of its algorithm, but advertisers benefit from the platform’s accuracy in predicting user interest and intent. Machine learning has made targeting more precise, especially in newer features like Smart Display campaigns.

Smart Display campaigns automate nearly everything—targeting, bidding, placements, and even ad creation. Google analyzes millions of past data points to determine who is most likely to convert and where ads should be shown. These campaigns combine prospecting (finding new customers) with remarketing (reaching previous visitors), making them especially powerful for small businesses that don’t have the time or budget to manually optimize dozens of settings.

To get the best results from display targeting, advertisers should use strong visual creative. Display ads with clear messaging, high-quality images, or short animation tend to perform better. A/B testing different banner styles can reveal which designs capture attention. Keeping text minimal also helps since display users are often scrolling quickly.

One of the biggest advantages of display ads is cost. Display clicks are usually much cheaper than search ads because they are not competing for high-intent keywords. They are ideal for brand awareness, retargeting, and introducing users to products before they even start searching for them. Google often recommends pairing display campaigns with search campaigns for a full-funnel approach.

Overall, Google Display targeting works by combining audience data, content relevance, and machine learning to match ads with users who are most likely to engage. By understanding these methods, businesses can take advantage of a vast advertising network that extends far beyond search results and places their message in front of millions of potential customers every day.