Keyword Targeting vs. Audience - What's Better in 2025? - Rocket Agents - Content Automation - Real Estate CRM

⬇️ Prefer to listen instead? ⬇️

80% of advertisers improved performance by combining first-party data with audience targeting.
Marketers relying on cookie-based targeting risk losing up to 40% of reach due to privacy reforms.
Businesses using first-party data saw up to 1.5x revenue growth, per a Forrester report.
In 2025, user expectations of privacy demand more transparency and consent-based targeting.
Google’s automated tools in 2025 favor audience-influenced signals over standalone keywords.

Keyword Targeting vs. Audience – What’s Better in 2025?

PPC has changed a lot. It used to be all about keywords. But now, in 2025, reaching the right person at the right time takes more than smart phrases. Marketers need a plan based on data and user privacy. This plan should focus on who their audience is, not just what they search for. Audience targeting uses first-party data and tools that respect privacy. It’s now key for making campaigns that connect with people and lead to sales. Let’s look at why audience targeting and first-party data are now the main focus over just using keywords for PPC.

person typing keyword on laptop

Keyword Targeting in 2025: Still Relevant, But Not Enough

Keyword targeting is still here, but it’s not the only plan worth using. Keywords still show what someone is trying to find. They are still good clues about what users want. But things have changed a lot:

1. Search Behavior is More Nuanced

People today search in different ways. They type parts of sentences, ask questions like they are talking, or use their voice. Often, these searches don’t have the exact words old campaigns used. So, keyword plans need to change. Otherwise, they might miss a lot of people who could be interested.

2. Google Changed the Rules

Google Ads uses automation and AI now, and match types changed. This makes keyword targeting less exact. For example, “exact match” now includes things that are close to your keyword. “Broad match” often works more like “any match”. This makes targeting less clear and gives you less control over who sees your ads.

3. Irrelevance Can Kill ROI

Just using keywords is like casting a wide net. You might get clicks from people who aren’t really looking for what you offer or their search doesn’t quite match. This can cost more money and lead to fewer sales. In marketing today, where results matter, that’s a big risk.

4. Performance Monitoring Becomes Harder

It’s harder to see exactly how keywords are doing. The platforms focus more on smarter, wider targeting now. So it’s tough to tell which specific keywords are actually working well for your campaigns.

Keywords are still important, but they work best as just one part of a PPC plan that uses different methods. If you use them without thinking about your audience, they don’t work as well.

diverse people using smartphones

What Is Audience Targeting?

Audience targeting changes how PPC usually works. It doesn’t just look at what someone searches. It looks more closely at who is searching and what is important to them. It uses data about how people act, who they are, and where they are. This helps show ads to the right people, no matter exactly what they searched for.

Types of Audiences in Google Ads:

Affinity Audiences: These are built around lifestyle and long-term interests (e.g., pet lovers, bodybuilding enthusiasts). Useful for awareness-stage campaigns looking to build familiarity.
In-Market Audiences: These users are actively researching purchases related to your offerings. Their intent is high, making this a great match for conversion-focused campaigns.
Custom Segments: You can build an audience by manually entering relevant keywords, URLs, or apps, thereby tailoring your segment closely to your buyer persona.
Similar Audiences (Lookalikes): Based on your first-party data, these are new prospects that behave like your highest-converting users.

Audience targeting makes sure your money goes to people who are interested and likely to buy, not just random clicks.

hand holding digital data icons

Understanding the Power of First-Party Data

Today, with privacy being so important, first-party data is one of the most trusted and useful things in digital marketing.

What is First-Party Data?

First-party data is any information collected directly from your users. This includes:

Email newsletter signups
CRM entries from form fills
Loyalty program data
Site or app behavior (page views, product clicks, downloads)
Purchase history

Third-party cookies collect data from outside sources, but these are being used less and less. First-party data comes right from your users, with their permission. It has three main benefits:

1. Accuracy

You collected this data yourself, so it’s usually cleaner and shows better how your customers really act.

2. Compliance

Data privacy rules like GDPR and CCPA are changing fast. Using first-party data lowers your risk. Google, Apple, and browsers like Firefox are making it harder to use third-party data, so first-party data is the safest choice.

3. Performance Lift

Data from Forrester Consulting shows businesses using good first-party data methods saw revenue go up by as much as 1.5 times. This is compared to companies that used old ways or third-party targeting.

First-party data helps you group your audience better. It lets you send messages that matter more to them. And it leads to more sales. These things are all key for PPC when there’s a lot of competition.

The Privacy-First Era: What It Means for Targeting

What users do and new rules have made big changes in online advertising. These changes are now here to stay:

Key Developments:

Apple iOS Privacy Updates: Users now have the ability to bypass in-app tracking, limiting retargeting reach.
Google’s Cookie Deprecation: By the end of 2024, Chrome will fully disable third-party cookies, a move already adopted by Safari and Firefox.

These changes really affect advertisers who still need third-party cookies. Some marketers think they might lose 30-40% of the people they can reach without these tools.

The Response: Prioritize First-Party Data

The answer is to use first-party data. Use it to build groups of people and help decide where to place ads. Also, you need to collect data in a clear way. People now want control and to know exactly how their data is used.

Trust and Transparency

Deloitte Insights says that 72% of people like getting personalized things. But this is only if they understand how and why their data is used (source).

Audience targeting uses first-party data to give people a personal touch. This shows respect for what they expect.

computer screen showing ad interface

How to Set Up Audience Targeting in Google Ads

If you want to start using audience targeting better, here is a simple way to do it:

Open Your Google Ads Campaign Dashboard.
Navigate to the Ad Group or Campaign level and locate the “Audiences” tab.
Select “Edit Audience Segments” and choose from available categories: affinity, in-market, demographics, etc.
Use Custom Segments to tailor targeting according to URLs or interests.
Add Customer Match Lists by uploading email addresses from your CRM.
Apply Exclusion Lists to ensure former buyers or irrelevant users are filtered out.
Regularly monitor performance per audience group—and adjust bids or creatives accordingly.

✏️ Pro tip: Use observation mode before you fully switch to targeting. This lets you test how an audience changes results.

crm dashboard on laptop

Using First-Party Data to Build Smarter Campaigns

Audience targeting is strong. But when you use your own data with it, you get much better results. Here’s how:

1. Segment Your CRM

Group your customers based on how they act. Like people who spend a lot, buy often, or just asked questions. Upload different lists for specific campaigns.

2. Enable Dynamic Remarketing

Use what people do on your site to make ads fit them better. Someone looking at running shoes shouldn’t see ads for dress shoes.

3. Integrate with Google Customer Match

Put the emails and phone numbers you collect from your site into Customer Match. Then you can:

Reengage cold leads
Promote cross-sell offers to past buyers
Suppress ads from those who already bought

Google reports say 80% of advertisers got better results. This was from campaigns that used first-party data signals (source).

hands using dual laptop screens

Combining Audience Targeting with Keywords: A Hybrid Approach

You don’t have to pick just keywords or just audience targeting. They work best when you use them together.

Why It Works:

Keywords show what someone wants. Audience targeting finds who you should show it to. Using both lets you make better experiences for people, which means you spend your money better.

Practical Examples:

Event Marketing: Bidding on “tech conferences near me”? Use this with people interested in B2B SaaS to stop ads showing to those who aren’t a good fit.
Real Estate: If a user searched “homes for sale,” and is already in your CRM, show ads with properties they viewed or saved.
Local Services: Add location or age data to filter who sees searches like “same-day plumber.”

This way of using both lets you make your ads better. You can set bids and budgets based on the people most likely to interact and buy.

real estate sign in suburban neighborhood

Case Study: Real Estate Agency Slashes CPA by 35%

A real estate company in Dallas was not happy. Their ads for terms like “homes for sale in Dallas” got visits, but not many sales. They looked at their Google Ads info and decided to change things:

What They Did:

Created remarketing lists of past site visitors.
Uploaded CRM leads via Customer Match.
Built lookalike audiences based on top clients.

Each group of people saw ads made just for them:

Past visitors got listings matching their search behavior.
Upload-based users saw reminders tied to filled-out interest forms.
Lookalike groups got introductory messaging and open house invites.

Results After 60 Days:

CPA dropped by 35%
Qualified leads jumped by 50%
ROAS doubled

When they used people’s past actions and the data they agreed to share, the local ads became a much better way to find customers.

Top Mistakes to Avoid with Audience Targeting

Even experienced marketers fall into these traps:

Assuming First-Party Data Quality: If your data is in different places, contacts are old, or things aren’t tracked right, your groups won’t be good.
Over-Segmenting: Making too many small lists means fewer people see your ads. And you might not have enough data to make things better.
Ignoring Matching Creative: You shouldn’t show the same ad to someone who buys a lot and someone who is new. Your message needs to fit the group.
Not Excluding Converted Users: Always use lists of people you don’t want to target. This stops you from paying to show ads to people who already bought.

Best Practices for Collecting and Using First-Party Data

It’s not just about getting data. It’s also about getting permission, being clear, and using it the right way.

Tips for Robust Data Collection:

Offer Strong Opt-In Incentives: Offer things like free tools, calculators, online talks, or guides you can download. These make people want to share their data.
Clear Consent Language: Say clearly how you will use the data. And let users say no or stop sharing anytime.
Unify Your Platforms: Make your CRM work with Google Ads, Facebook, and automation tools. This makes sure data is always fresh and helps you see everything.

team using marketing automation software

How Content Automation Platforms Fuel Audience-Based PPC

Marketing teams often use automation platforms today. These are tools like HubSpot, Marketo, or Segment. When used well, they really boost your PPC campaigns.

Automation Benefits:

Ad Creative Scaling: You can make many different ads. These can be made just for specific groups of users.
Landing Page Personalization: Show pages with forms already filled in, or pages with local details or things that match what someone is interested in.
Cross-Channel Sync: Make sure your message is the same everywhere. Like on paid search ads, in emails you send over time, and on your social media posts.

Automation helps make everything fit together. That’s what people today expect, and it does this without using up all your team’s time.

The Future of PPC: Strategies Beyond Keywords

Looking ahead, the PPC marketers who do well will be the ones who get good at:

AI-Powered Signal Detection: Platforms will spot small signs based on how people act. They will do this even before someone buys something.
Conversion-focused Experiences: Ads and landing pages will change based on who is visiting.
Omnichannel Journey Integration: PPC will work closely with SEO, social media, email, and sales help.

Audience targeting and first-party data won’t just be helpful. They will be the base of everything.

Why Audience Targeting and First-Party Data Are the Future

From 2025 on, doing great in PPC means more than guessing keywords. It means understanding who is doing the searching. Each click is a person. Make sure you use lots of data for targeting, make your message matter to the person, and track things in a way that respects privacy.

To get more return on investment, marketers should:

Integrate CRM and automation platforms
Invest in collecting and cleansing first-party data
Use hybrid campaigns that combine audience segmentation with intent-driven keywords

To win in PPC now, you need to be there where it counts most. That’s with the right person, saying the right thing, when they need it.