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Showing content from https://support.google.com/google-ads/answer/2454003 below:

Add data segments for website visitors to ad groups

To provide a comprehensive and consolidated view of your Audiences and make audience management and optimization simpler, you’ll find the following improvements in Google Ads:

• New audience reporting
  Detailed reporting about audience demographics, segments, and exclusions is now consolidated in one place. Click the Campaigns icon and open the “Audiences, keywords and content” tab and click Audiences. You can also easily manage your Audiences from this report page. Learn more About Audience reporting.
• New terms
  We’re using new terms on your audience report and throughout Google Ads. For example, “audience types” (these include custom, in-market, and affinity) are now referred to as audience segments and “remarketing” is now referred to as “your data”. Learn more about the Updates to Audience terms and phrases.

Add your data segments to your ad groups so that your ads show to people who have visited your website. This article shows you how to add your data segments to ad groups.

To add your data segments to your ad groups, follow these steps:

1. In your Google Ads account, click the Campaigns icon .
2. Click the Audiences, keywords, and content drop down in the section menu.
3. Click Audiences.
4. In the “Audience Segments” module, click Show table.
5. Select Campaign view or Ad Group view in the view drop down menu to filter for the reporting level you want to see.
6. To make changes to your targeting, click Edit Audience Segments.
7. Select the campaign or ad group that you want to update.
8. Use the “Search” and “Browse” options to find and select the segments that you want to target.
9. Click the checkbox next to the segment you'd like to target. This will add them to your targeting.
10. Click Save.

Multiple ad groups or campaigns can target the same data segment. If more than one of your ads targets the same data segment, each ad is eligible to show. If a visitor is in more than one of your data segments, ads in campaigns using these segments are eligible to show. In both cases, Google Ads chooses the ad with the highest ad rank to compete in the ad auction.

Adding other targeting methods to your Display Network campaign that uses your website or your app data might narrow your audience. For example, if you add Display keywords to an ad group in your campaign that uses your website or app data, and select the "Target and bid" setting for both data segments and keywords, your ads can show only to people in your data segments when they visit websites that match your keywords. If you select the "Bid only" setting for your data segments and the "Target and bid" setting for keywords, your ads can show to people when they visit websites that match your keywords. If people visiting those websites are on your data segment, your data segment bid applies.

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