Custom Audiences vs. Lookalike Audiences | Maximize Ad Reach

Custom Audiences and Lookalike Audiences are powerful tools within Facebook Ads that allow you to target users more effectively. By leveraging these audience types, you can reach people who are already familiar with your business and those who are similar to your best customers.

Custom Audiences

1. Custom Audiences

Definition:

  • Custom Audiences allow you to target ads to people who have already interacted with your business. These interactions can include visits to your website, engagement with your Facebook content, use of your app, or providing their contact information.

Types of Custom Audiences:

  1. Customer List:
  • Upload a list of customer contact information, such as email addresses or phone numbers.
  • Facebook matches the data to user profiles to create a targetable audience.
  1. Website Traffic:
  • Use the Facebook Pixel to track visitors to your website and create an audience based on their actions.
  • Target users who have visited specific pages, completed purchases, or performed other actions on your site.
  1. App Activity:
  • Create an audience based on people who have used your mobile app.
  • Target users who have installed your app, achieved certain levels, or made in-app purchases.
  1. Engagement:
  • Create audiences based on interactions with your Facebook or Instagram content.
  • Target users who have engaged with your posts, videos, ads, or page.

Setting Up Custom Audiences:

  1. Navigate to Audiences:
  • Go to Facebook Ads Manager and select “Audiences” from the menu.
  1. Create a New Custom Audience:
  • Click “Create Audience” and select “Custom Audience.”
  1. Choose Your Source:
  • Select the source for your Custom Audience, such as Customer List, Website Traffic, App Activity, or Engagement.
  1. Define Your Audience:
  • Follow the prompts to upload your data or set up tracking parameters.
  • Provide the necessary information and name your audience.
  1. Save and Use Your Audience:
  • Once created, your Custom Audience will be available for targeting in your ad sets.

2. Lookalike Audiences

Definition:

  • Lookalike Audiences allow you to reach new people who are similar to your existing customers or other valuable audiences. Facebook uses machine learning to identify users with similar characteristics and behaviors to those in your source audience.

Creating Lookalike Audiences:

  1. Source Audience:
  • Choose a source audience from your existing Custom Audiences, Page fans, or pixel data.
  • The source audience should ideally have at least 1,000 people for optimal performance.
  1. Audience Location:
  • Select the country or countries where you want to find similar people.
  1. Audience Size:
  • Choose the size of your Lookalike Audience, ranging from 1% to 10% of the total population in the chosen location.
  • A 1% Lookalike Audience includes people who most closely match your source audience, while a 10% audience will be larger and less similar.

Setting Up Lookalike Audiences:

  1. Navigate to Audiences:
  • Go to Facebook Ads Manager and select “Audiences” from the menu.
  1. Create a New Lookalike Audience:
  • Click “Create Audience” and select “Lookalike Audience.”
  1. Select Your Source:
  • Choose the source audience from which you want to create a Lookalike Audience.
  • Specify the location and audience size.
  1. Create and Use Your Audience:
  • Once created, your Lookalike Audience will be available for targeting in your ad sets.
Best Practices for Using Custom and Lookalike Audiences

3. Best Practices for Using Custom and Lookalike Audiences

1. Combine Audiences for Better Results:

  • Use Custom Audiences for retargeting and Lookalike Audiences for prospecting.
  • Combine both strategies to create a comprehensive targeting approach.

2. Regularly Update Audiences:

  • Keep your Custom Audiences up to date with the latest customer data.
  • Refresh Lookalike Audiences periodically to ensure they remain relevant.

3. Test Different Audience Sizes:

  • Experiment with different Lookalike Audience sizes to find the optimal balance between reach and similarity.
  • Smaller audiences (1-2%) are more precise, while larger audiences (3-10%) offer broader reach.

4. Exclude Overlapping Audiences:

  • Exclude Custom Audiences from Lookalike Audience targeting to avoid showing ads to the same people.
  • Ensure distinct targeting for different campaign objectives.

5. Leverage Engagement Data:

  • Create Custom Audiences based on high-engagement users for more effective retargeting.
  • Use Lookalike Audiences based on these engaged users to find similar, high-potential prospects.

6. Utilize Multiple Sources:

  • Create Lookalike Audiences from various Custom Audiences, such as high-value customers, frequent website visitors, or active app users.
  • This diversification can help you reach different segments of similar potential customers.

Conclusion

Custom Audiences and Lookalike Audiences are essential tools for effective Facebook advertising. By targeting users who have already interacted with your brand and those who resemble your best customers, you can create more relevant and impactful ad campaigns. Regularly updating and optimizing these audiences will ensure that your targeting remains accurate and effective, helping you achieve your marketing goals.

Scroll to Top