You can use audience targeting to show your ads to:
Correct Answer
specific groups of people, based on their interests
Why is this the correct answer?
You can use audience targeting to show your ads to specific groups of people based on their interests. Audience targeting on the Google Display Network uses signals from users' browsing behaviour, app usage, and Google account data to identify people with particular interests, in-market intent, or demographic characteristics. Rather than targeting websites or keywords, audience targeting focuses on the people themselves — ensuring ads reach the most relevant individuals regardless of which specific website they are visiting.
Why are the other options wrong?
specific websites, based on specific interests
Targeting specific websites based on interests is placement targeting combined with interest targeting — audience targeting itself focuses on people, not specific websites.
groups of websites, based on specific interests
Groups of websites based on specific interests describes topic targeting — a content-based approach. Audience targeting is people-based, not website-based.
specific groups of people, based on their location
Specific groups of people based on their location describes location targeting — audience targeting uses interests, behaviours, and demographics, not geographic data.
Real-world example
A sports nutrition brand uses in-market audience targeting for people researching fitness supplements. Their Display ads reach users who have been actively searching for protein powder, pre-workout, and gym equipment — regardless of which website they are currently visiting. Cost per acquisition is 3x lower than topic targeting alone.
Official documentation: https://support.google.com/google-ads/answer/2497941
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About the Google AdWords Fundamentals Exam (Retired)
The AdWords Fundamentals exam was retired when AdWords became Google Ads.
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