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Glossary

Audience Targeting

Last updated: April 9, 2026

Definition: What is audience targeting?

Audience targeting refers to delivering advertising to predefined groups of users who share specific characteristics, behaviors, or interests. Instead of steering ads by search terms or placements, the advertising is tied to the user themselves – regardless of which page they happen to be visiting or which search term they entered.

Within the Amazon ecosystem, audience targeting is especially powerful because Amazon has one of the world's largest first-party data sets. Amazon knows not only its users' browsing behavior but also their actual purchase behavior – and can build audiences based on real transactions. That makes Amazon audience targeting far more precise than comparable approaches at Google or Meta, which rely primarily on search behavior and page views.

The most important audience types on Amazon

Amazon provides a whole range of audience segments that can be used depending on the campaign goal and funnel stage. The most important types at a glance:

In-Market Audiences

Users who are currently actively searching for products in a particular category or have recently viewed them. This audience has the highest purchase intent and is well suited to lower-funnel conversion campaigns.

Lifestyle Audiences

Users with long-term interests and buying habits – e.g. “fitness enthusiasts” or “organic shoppers”. Ideal for awareness campaigns and introducing your brand to new audiences. More on Lifestyle Audiences.

Remarketing / Retargeting Audiences

Users who have already interacted with your brand – product views, cart activity, or previous purchases. In our experience, these deliver the highest conversion rates of all audience types. More on Retargeting.

Lookalike / Similar Audiences

Amazon builds these segments automatically based on your existing audiences: users who share similar characteristics with your current buyers but don't yet know your product. A good way to scale reach in a controlled manner.

Custom / Advertiser Audiences

Your own audiences that you can create yourself in Amazon DSP – e.g. based on your competitors' ASINs, specific categories, or combinations of multiple signals. Maximum flexibility, but requires DSP access.

Demographic Audiences

Segmentation by age, gender, income, or household size. More useful as a supplementary filter, rarely sufficient as the sole targeting criterion.

Audience targeting in Amazon DSP

Amazon DSP offers the most extensive audience-targeting options in the Amazon ecosystem. Here, advertisers have access to thousands of predefined segments and can additionally create, combine, and refine their own audiences.

What Amazon DSP additionally offers

  • Audience Builder: Create your own segments at the ASIN level (e.g. “users who viewed competitor product X”)
  • Audience Overlap: Analyze which segments overlap to avoid wasting budget
  • Amazon Marketing Cloud: For advanced audiences based on custom queries with AMC
  • Hashed Audience Upload: Upload your own CRM data (hashed emails) as a seed for lookalike audiences

Strategies for effective audience targeting

  • Full-funnel approach: Use Lifestyle Audiences for awareness, In-Market Audiences for consideration, and Retargeting Audiences for conversion. Each funnel stage needs its own audiences, creatives, and bids.
  • Competitor conquesting: In Amazon DSP, create custom audiences based on competitor ASINs. Users who have viewed or bought competing products are obviously interested in your category.
  • Test segments, don't guess: Start with 3–5 audience segments per campaign and compare performance. Pause underperforming segments after 2–3 weeks and scale the winners.
  • Audience exclusions: Actively exclude segments to avoid wasting budget. Example: exclude buyers from the last 30 days from view-retargeting campaigns.
  • Frequency capping per audience: Warm audiences (retargeting) tolerate higher frequencies than cold ones (lifestyle). Adjust the frequency caps accordingly.

Keyword targeting vs. audience targeting

Keyword targeting (as used in Sponsored Products) and audience targeting are not opposites but complementary strategies. Keyword targeting captures active demand – the user is searching right now. Audience targeting proactively reaches out to the user – even when they aren't searching at the moment, e.g. via Programmatic Advertising.

Keyword Targeting

Reactive: “The user is searching for my product” → lower funnel, high purchase intent

Audience Targeting

Proactive: “I reach out to the right user” → full funnel, awareness through conversion

The strongest combination: keyword campaigns for direct demand, audience campaigns for building brand awareness and expanding the customer base. Over the long term, audience campaigns increase branded searches, which in turn makes the keyword campaigns perform better.

Frequently asked questions (FAQ)

Do I need Amazon DSP for audience targeting?

Not necessarily. Sponsored Display already offers basic audience targeting (views/purchases remarketing, interests). For advanced options like custom audiences, lookalikes, competitor-ASIN targeting, or AMC-based segments, however, Amazon DSP is required.

How do I measure the success of audience campaigns?

In the lower funnel (retargeting), the usual KPIs apply: ACoS, ROAS, conversion rate. In the upper funnel (lifestyle, awareness), reach, new-to-brand orders, and the impact on organic branded searches are the more relevant metrics. A pure ACoS view almost always underestimates the value of awareness campaigns.

What audience size should I aim for?

It depends on the budget. Audiences that are too small (under 50,000 users) limit delivery and yield few learnings. Audiences that are too large (several million) dilute the targeting. To get started, segments between 100,000 and 1 million users are recommended, which you then refine based on performance.

Related terms

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