An L7 load balancer target group is a set of IP addresses of VMs that your network applications are running on. Target groups are specified in backend group configurations to enable the distribution of routing requests by the load balancer.
You can create target groups manually or create a VM target group for the L7 load balancer in Instance Groups. When you change the VM configuration, Instance Groups automatically updates IP addresses of VMs in the target group. If the target group is connected to a backend group, Instance Groups also monitors health check results delivered by the L7 load balancer.