Businesses and brands need solid marketing tactics to extend their reach to more audiences. Most online marketers use different paid advertising strategies such as Pay-Per-Click (PPC), Influencer Marketing, and Social Media Ads, among others.
The power of paid posts and ads on social media has grown exponentially. It is one of the most effective ways for businesses and brands to reach their target audience. Facebook ads are used to engage a specific audience, statistically claiming to be accurate 89% of the time. There are various options to advertise on Facebook. Facebook Ads Manager offers several advertising formats, which businesses can choose based on their marketing objectives.
Facebook Lookalike Audiences
One of Facebook’s advertising formats is Lookalike Audiences. So, what exactly is Lookalike Audiences on Facebook? It’s a powerful tool that gets valuable information from your best existing customers to find new people who will most likely be good customers as well. In other words, it’s like a matchmaker tool that finds people who are similar to the business’ best customers. Lookalike audiences are best used to get new “cold” audiences beyond interest or behavior targeting.
How Lookalike Audiences Are Created
Lookalike audiences are created from a source or seed audience. This can be done by using data from people who have previously engaged with similar content on social media, app activity, website visitors, or customer information. The source audience must contain at least a hundred people from the same country. Facebook makes use of its massive trove of customer data to find commonalities, helping businesses and brands find the best audience in order to create highly-targeted ads (as seen also on advertising platforms such as AdsSupply, OutBrain, etc.).
Benefits of Lookalike Audiences
Here are a few benefits of using lookalike audiences on Facebook:
- It yields better results.
With lookalike audiences, the people who are exposed to the ads are somewhat similar to the followers and fans that the advertiser already has, so the chances of converting become much higher. When a certain business already knows which types of audiences are likely to get converted, they can easily target these people.
- Get twice the value for an effective ad.
The advertiser can get twice the value on a particular type of ad. When a specific ad appeals to an audience, marketers, and advertisers can create another target audience and use that ad again with a similar possibility of conversion.
- Be able to constantly monitor performance.
Similar to most of Facebook’s targeting features, the lookalike audience tool enables the advertiser to closely monitor a specific audience that an ad is shown to and how the selected audience is responding to it. This allows advertisers and marketers to address potential issues early on and make the necessary adjustments.
- Reach new people.
One of the greatest things about Lookalike Audiences is that businesses can reach new people outside their customer’s list and fan base. The tool allows advertisers to create new groups of people that have similar qualities as the selected source audience – it could be psychographics, demographics, interests, or salary – and scale the ads based on this data effectively.
- Be able to scale campaigns quickly and easily.
Because businesses create lookalike audiences based on a percentage number of people from a target area or group, they can start with a small percentage, and as they reach higher ad conversion, incrementally raise the percentage gradually higher.
Overall, using Facebook Lookalike Audiences can definitely benefit ad campaigns, resulting in higher conversions.