Think of the most loyal and highest-spending customers of your company. Now imagine reaching out to potential customers that are similar to these “ideal” customers of yours. That sounds like a lot of business potential, doesn’t it? Well, that’s exactly how Facebook’s value-based Lookalike Audiences works to maximise the return on your advertising spend.
Launched in 2013, Lookalike Audiences has become the “bread and butter” for companies that rely heavily on Facebook to reach out to their potential customers.
There are primarily three audience types that you can use on Facebook to target your advertising campaigns:
1) Saved Audiences
You define your target audiences according to location, income, education level, interests, age, gender, language, etc.
2) Custom Audiences
You define your target audiences according to their website and app activity. People who have visited your website or used your app are considered high-value as they have already displayed interest in your products or services.
3) Lookalike Audiences
Algorithm-based Lookalike Audiences allows you to reach out to potential customers that share similar profiles as your existing customers, i.e. you have a very good chance of converting them.
It works like this: First, you let Facebook know what types of potential customers you intend to reach by creating a Custom Audience based on up to 15 identifiers (e.g. email, phone number, year of birth, etc). Then, you pick a target location and a percentage (1% to 10%) of that location’s Facebook users that are the most similar to your defined Custom Audience. With the help of various AND/OR, as well as EXCLUDE, options, you can precisely narrow down your requirements.
Lookalike Audiences is an effective way of assessing customer value and reaching new prospects that are likely to convert, allowing you to make the most of your advertising budget. Facebook is now offering new event sources for creating value-based Lookalike Audience to make the process even more automatic, accurate, and in real-time. Talk to us to learn more about these tools that apply to web, app, catalog, or offline event sets.
Sources:
1) https://www.adweek.com/
2) https://adespresso.com/guides/
