Facebook Advertisers Can Now Create Lookalike Audiences Based On Customer Lifetime Value Adweek



Facebook errors in lookalike campaigns. Although advertisers will likely balk at this curtailment of targeting options, getting rid of partner categories probably won't change their Facebook buying strategies all that much, considering the volume of data Facebook still has at its disposal for targeting.

If you don't already know how to create Custom Audiences & Lookalike Audiences, the Facebook help page has that covered with their Create a Lookalike Audience instruction, and check out our PPCHero article on 3 Tips to Better Understand Facebook Audiences for more details on audience building.

Start with a 1% size and go from here based on the quality of the results. Although it might not be ideal for making purchases it can be an excellent audience to target your Page Posts (boost posts) or your Facebook Page in order to increase your fan base as opposed to other targeting options.

A Lookalike Audience on Facebook is a new audience that is similar to your existing customer, or seed audience. This means that additional targeting layers can be added to further refine your audience. Partner categories provided an added layer to help create these hyper-specific audiences.

Finally, you choose an Audience Size, which ranges from 1% to 10%. An ecommerce company who targeted their email list found a 43% conversion rate increase among sign-ups and a 30% decrease in cost-per-lead. I ask if lookalike audiences are certain to be cold audiences or if you need to exclude fans and website visitors to reach true cold audiences.

Fun tip: You can still layer in interest and demographic targeting to these audiences. You then need to create a Website Custom Audience - you do that in the Audiences tab in Ads Manager. However, even though the reach will be the same in both cases, the quality of the Lookalike audience will be much higher with a seed of 5,000.

A lookalike audience is a targeting audience based on a custom audience. Strangers you first targeted using demographics, behaviors, and interests become part of your web traffic custom audience upon their first visit—even if they don't take any other action on your website during their visit.

However, to confirm that the cost for lookalikes will be lower for you, you have to test and compare the different audiences. This can happen when you create multiple Lookalikes from similar seed audiences. You can create a custom audience by applying your data such as page likes, email addresses and phone numbers.

Now that your custom audience is created and saved into Facebook, the next step is to set up your campaign. You can use an email list, a custom audience from your Facebook Pixel or even just fans of your Facebook page. The CTR and conversion rate for Lookalike audiences are better than completely cold audiences since these people have a higher likelihood of being interested in your product.

Once I did this, I was able to create a lookalike audience of 140,000 women who should be very similar to my source audience of 6,600. If you are just getting started using a Lookalike Audience, we recommend you choose one end of the spectrum and adjust over time, optimizing for engagement, conversions and lifetime value of a customer.

Your first one is to select which Custom Audience you'd like to base your Lookalike Audience on (if you've created more than one Custom Audience). For example, you could upload a seed audience of users that have converted in a particular country, allowing you to target potential new customers within that country specifically.

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