What does audience overlap suggest in ad delivery?

Audience overlap suggests that when multiple ad sets share the same or similar target audiences, it can lead to inefficiencies in ad delivery, which often results in some ad sets not fully utilizing their allocated budgets. When there is significant overlap, users may be targeted by multiple ad sets simultaneously, causing competition for the same impressions within the advertising auction. As a result, some ad sets may end up with unspent budget as their reach is diminished when users are already engaged with ads from other overlapping sets.

This phenomenon highlights the importance of strategic audience segmentation in media buying to ensure that each ad set can effectively reach its intended audience without competing against others for the same impressions, thus maximizing budget efficiency and overall campaign effectiveness.