Digital advertising leverages data to target audiences effectively by utilizing algorithms and user behavior analytics. Advertisers gather information from various sources, such as online browsing patterns, demographic details, and previous purchase history, to create customer profiles. This data-driven approach allows for personalized marketing campaigns that reach specific segments of the market, improving the chances of engagement and conversion. By continuously analyzing performance metrics, advertisers can refine their strategies in real-time, ensuring that their ads resonate with the intended audience and maximize return on investment (ROI).