Do you want to get most out of your Facebook advertising campaigns? Use Lookalike Audience!
What is a Lookalike Audience in Facebook Advertising?
Have you ever considered what could be the common behaviour, demographics or interests of your existing customers? It may be a difficult stuff to think as a human being. But what about technology?
Yes, with Facebook’s Lookalike Audience creation tool, you can reach people who share similarities with your audience: such as location, hobbies, and what kinds of pages & posts they follow.
By creating lookalike audience, you get an opportunity to reach thousands and even millions of people who share a similar profile as your ideal audience.
How do you create a Lookalike audience?
As I’ve shared in one of my previous blog posts how you can create a Facebook Custom Audience based on the contacts list that you have or the traffic that your website receives. The next step to expand your custom audience is to create a lookalike audience.
You can create a Lookalike Audience in Ads Manager or Power Editor.
To create a Lookalike audience in Manager or Power Editor:
(1) go to your Audiences,
(2) click Create Audiences and select Create a Lookalike Audience,
(3) choose your source,
(4) choose the country where you’d like to find a similar set of people,
(5) choose your desired audience size with the slider, and
(6) click Create Audience.
Primarily, there are 3 ways to build your Lookalike Audience. Here’s the list of where you can build them from:
a. Fans from your Facebook page: You can reach people who are similar to those who have liked your page.
b. Custom Audiences: You can create Lookalike Audiences based on your Custom Audiences. These are audiences that were created (by importing information to Facebook) from your customer contact list, website traffic or mobile app.
What are the benefits of using Lookalike audience in your Facebook ads?
#1 Get more out of your existing traffic
Creating a lookalike audience allows you to grow your audience density whom you can advertise your services & products to. Not only this, but you also have the control over selecting a specific audience type (through custom audience) which you want to multiply & grow your targeted users.
For eg. when you create separate custom audiences for different events like add to cart, purchase, page views etc., you can expand the reach to your desired set of audience like people who are similar to the users who added the products to their cart (shown interest in your products) or who did purchase your products (who actually own your products).
#2 Audience size expandability
Do you know that if you have a custom audience of let’s say 500 users, you can easily multiple them and increase to even millions by creating a lookalike audience?
Although it must be noted here that the higher is the percentage of creating a look alike audience (1% to 10%), the lesser will be the accuracy.
An ideal % to choose should be between 1% to 4% which will still enable you to multiply your basic set of audience (custom audience) manifold.
#3 Helps to improve the conversion rate
Since now we already know that a lookalike audience is similar to your Facebook likes, website traffic or custom audience (audience that you accumulated through your website traffic or existing customers emails), the chances of getting sales & leads from the lookalike audience is much likely.
Therefore, a lookalike audience helps you to get not only a wide span of audience to advertise, but it also help you to get more conversions for your business. In other words, you can get more conversions in the same cost of Facebook advertising.
#4 Improve the overall ROI of your advertising campaign
When most of your Facebook advertising cost will be spent on the well-targeted audience (lookalike audience), you get more conversions within your same budget which you would have spent otherwise on the broad set of audience. Therefore, lookalike audience also helps you to get higher returns on your investment.