Facebook is one of the most useful social media platforms for big and small businesses. The site lets you reach a broad audience and makes it easy to deliver various content types, such as status updates, links to websites and blogs, video content, and images. Its direct messaging feature allows you to interact with customers with ease. It also allows you to set automated responses when you are not available.
It is also one of the most widely used social platforms across all demographics. It is a common misconception to think that social media is a young person’s game. Though that may have been true in the earlier days of social media, today, Facebook and other popular platforms are used by people of all ages and professions.
One Facebook feature that stands out as a powerful tool for business growth is ‘lookalike audiences’. Lookalike audiences reflect the same purchasing habits, demographics, and general interests as your current audience. When you find a lookalike audience, you find more potential leads and prospects.
How Do Lookalike Audiences Work?
According to Facebook advertising experts, Facebook sources your lookalike audience using a range of data based on users who share similarities with your existing audience. (Facebook). The feature takes into account:
- Online purchase history
- Likes, comments, and shares
- Group activity
- Liked pages
- Pixel data
- Profile data (age, gender, location)
- Ads clicked
Facebook pixel data is a code for your website that lets you keep track of visits and conversion from Facebook ads. (Facebook) It works by using cookies that track user behaviour as they interact with your site and your Facebook page. Facebook’s pixel data feature allows them to collect vast amounts of data to use for audience analysis.
What Are the Benefits of Lookalike Audiences?
Save on Costs
When you use your existing audience to find a lookalike audience, you get twice the value of your campaign. You manage to reach more potential customers without spending extra money. Once you know that an ad or other type of content appeals to one audience, you can also appeal to their lookalikes, which increases your potential conversions.
Improve your ROI
Suppose your existing audience finds your ads relevant and worthy of engagement. In that case, it makes sense that their lookalikes will feel the same way. The lookalike audience, then, is a valuable source of engageable leads.
Relevant ads increase your conversion rate. (Google) Facebook will notice and give you a higher relevance score thanks to your great performance. With a higher relevance score, the price of ads comes down. Combine this reduced cost with a higher conversion rate, and your ROI is set to be high.
How Do I Build a Lookalike Audience on Facebook?
Choose a Source Audience
The source audience is the selected audience from which Facebook builds your lookalike audience. You can choose website visitors, followers of your page, or your existing customer list. Your source audience must include at least 100 people.
Select your Audience Size
The minimum audience requirement is 100 members. A large audience size allows you to reach more people but with less accuracy. Smaller sized audiences allow for greater accuracy. Though fewer people will see your ad, those who do see it will be more accurately aligned with your current audience members.
Specify your Demographics
Facebook’s lookalike audience feature allows you to narrow your lookalike audience by demographic. You can use the drop-down menu to specify an age group or gender in a specific geolocation that you want to reach. For example, you can specify that you want your audience to consist of 18-25-year-old women from Brighton or men over 65 living in Bristol.
Types of Lookalike Audience
You can select your audience using certain lookalike criteria, such as pages liked, website visits, Facebook followers, or email subscribers.
Page Likes Lookalike Audience
The easiest lookalike audience to create is one based on those who already like your page. It is a simple way to leverage your existing popularity and find an audience likely to build your follower count, increasing your overall brand awareness.
Email Subscriber Lookalike Audience
An email subscriber lookalike audience has been found to deliver strong results. Suppose a person subscribes to your email updates and newsletter. In that case, they are likely highly interested in what you have to offer. By identifying and targeting an email subscriber lookalike audience, you increase your chances of attaining high-quality leads and customers.
Once you identify several lookalike audiences, you can combine them to reach multiple goals, such as:
- Greater reach
- More conversions
- Increased traffic
Lookalike audiences are one of the fastest ways to grow your audience and reach more potential customers. Facebook gathers a large amount of user data, so it is a great tool to learn more about your audience.