Audience exclusion is a setting that determines who an ad should not be shown to. It tends to be underused, even though it delivers quick savings. Typically excluded are existing customers in acquisition campaigns, people who have already converted, job applicants, the company's own employees, and, in some campaigns, visitors who arrived by mistake from unrelated topics. A second reason is preventing overlap between your own campaigns, which then compete with each other for the same audience and needlessly drive up the price. Exclusion is set at both campaign and account level, depending on whether it should apply broadly. When working with customer lists, verify the legal basis for using them for advertising purposes and for informing the data subjects. Also update the lists regularly, otherwise you end up excluding someone you should have reached out to again long ago.
See also: Frequency capping, Offline conversion import, Smart bidding (automated bidding).