Have you ever wondered what exactly a Facebook Lookalike audience is, why it’s valuable, or how to make the best use of it in your marketing campaigns?

Lookalike audiences are one of the most powerful tools in Facebook’s advertising toolkit, allowing you to expand your reach, find new potential customers similar to your existing ones, and drive higher conversion rates.

This article answers all your questions about Lookalike audiences, debunks common myths, and provides actionable steps to help you get started.

What Is a Facebook Lookalike Audience?

A Facebook Lookalike Audience allows advertisers to take an existing “seed” audience such as a list of current customers, website visitors, or social media engagers and use Facebook’s advanced algorithms to identify a new audience of people with similar characteristics.

Think of it as Facebook’s way of “cloning” your best-performing customers to help you reach more people who are likely to be interested in your product or service.

Facebook leverages its huge data on user behavior, demographics, and interests to build these audiences. The platform monitors actions users take like purchasing habits, time spent on specific websites, engagement with particular types of content, and much more. Although Facebook’s data collection might seem invasive, it’s a goldmine for marketers seeking more effective targeting options.

How Does a Lookalike Audience Work?

To create a Lookalike audience, Facebook requires a “seed” audience, which could be a Custom Audience you’ve already created in Facebook Ads Manager. This seed audience can be derived from different data sources, such as:

1. Customer Lists: Lists of email addresses or phone numbers from customers.

2. Website Visitors: People who have visited specific pages on your website.

3. Facebook Page Engagements: People who have interacted with your Facebook Page (liked, commented, shared).

4. Instagram Engagements: People who have engaged with your Instagram account.

5. Video Views: People who have watched videos you’ve posted on Facebook or Instagram.

6. App Activity: Users who’ve taken specific actions within your app.

Once you define your seed audience, Facebook’s algorithm analyzes it to identify shared traits. These might include common demographics, interests, or behaviors. Facebook then goes out and finds people who match these attributes to create your Lookalike Audience.

For example, if you upload a customer list with email addresses of your best buyers, Facebook can use this information to find people who resemble these buyers in terms of their online habits, interests, and behaviors.

Step-by-Step Guide on Creating a Facebook Lookalike Audience

If you’re ready to try out Lookalike Audiences, here’s a simple guide to creating one in Facebook Ads Manager:

1. Go to Facebook Ads Manager: Head over to the Audience section by selecting “Audiences” from the drop-down menu in the Ads Manager dashboard.

2. Create a Custom Audience (Seed Audience): Click “Create Audience,” then select “Custom Audience” to build your seed audience. You can choose to create a Custom Audience from website visitors, an email list, social engagement, app activity, or video views.

3. Set Up the Lookalike Audience: After creating your Custom Audience, click on the blue “Create Audience” button again and choose “Lookalike Audience.”

4. Choose Your Data Source: In the Lookalike Audience pop-up box, select your newly created Custom Audience as the “source” or seed audience.

5. Select the Location: Choose the country or region where you want Facebook to find your Lookalike Audience.

6. Define the Audience Size: Facebook will offer you a slider to select an audience percentage. For most countries, a 1% Lookalike Audience means that the people included are very similar to your seed audience, while a 10% Lookalike Audience offers a broader but less precise match. Start with 1% for a highly targeted audience and consider expanding to 2% or more as you scale.

7. Create the Audience: Once you’ve set the parameters, click “Create Audience.” Facebook will now take a few minutes to generate your Lookalike Audience based on your selected settings.

Facebook will automatically save this new Lookalike Audience to your account, allowing you to use it in current and future ad campaigns.

Key Considerations When Using Lookalike Audiences

1. Seed Audience Quality Matters

Your Lookalike Audience is only as good as the seed audience you use to create it. Using a highly-engaged seed audience, such as a list of your most loyal customers, will likely produce a better Lookalike Audience than a list of one-time website visitors. The more engaged your seed audience, the higher the quality of your Lookalike Audience.

2. Source Audience Size and Consistency

While Facebook requires at least 100 people from a single country to create a Lookalike Audience, aiming for at least 200-500 can yield better targeting results. Also, a seed audience of a couple of hundred people or more helps Facebook create a more accurate match, increasing the chances that the Lookalike Audience will include potential buyers or clients.

3. Choose the Right Audience Size Percentage

Selecting between a 1% or a higher percentage depends on your goals:

• 1% Lookalike Audience: Narrow and most similar to your seed audience. It’s ideal for highly-targeted campaigns with a specific demographic.

• 2%-10% Lookalike Audiences: Broader audiences that are less similar to the seed audience. Use these percentages if you aim for a larger reach but are less concerned about precise targeting. Testing different percentages will help you determine the best for your specific goals.

4. Use Multiple Lookalike Audiences Sparingly

While Facebook allows you to use multiple Lookalike Audiences in one campaign, avoid stacking too many at once to ensure accurate testing. Run separate campaigns for each Lookalike Audience so you can analyze which one performs best.

Advanced Tips for Maximizing Lookalike Audience Performance

1. A/B Test Your Lookalike Audiences

Testing is crucial. Set up A/B tests with different Lookalike Audience sizes (1%, 2%, 5%, etc.) and compare them against other targeting methods, like interest or behavior-based targeting. A/B testing allows you to understand which audience is bringing in the highest conversions at the best cost per action.

2. Combine Lookalike Audiences with Retargeting

Use Lookalike Audiences alongside retargeting to boost your campaign’s effectiveness. For instance, you can target a 1% Lookalike Audience based on your website visitors and simultaneously run ads to retarget those who already interacted with your website but didn’t convert.

3. Exclude Existing Customers

When targeting a Lookalike Audience, remember to exclude your existing customers to avoid wasting ad spend on people who already converted. Use Custom Audience exclusions to ensure your ad reaches fresh prospects.

4. Try Value-Based Lookalike Audiences

Facebook also allows value-based Lookalike Audiences, using a “value” source audience. If you have a customer list with purchase values attached, you can create a Lookalike Audience that mirrors your highest-value customers. This feature is especially useful for e-commerce brands aiming to increase customer lifetime value.

Common Facebook Lookalike myths

Myth 1: Lookalike Audiences Replace Keyword or Interest Targeting

While Lookalike Audiences are highly effective, they don’t replace other targeting methods. They work best when used in conjunction with other techniques, such as interest-based targeting or demographic filters. Combining these methods can help you create a multi-layered campaign strategy.

Myth 2: Larger Lookalike Audiences Are Always Better

Not necessarily. While a 10% Lookalike Audience reaches more people, it dilutes the targeting precision. Testing various audience sizes and analyzing performance metrics will provide insights on what audience size works best for your campaign.

Myth 3: Lookalike Audiences Can Be Created from Any Data

Lookalike Audiences require assets you own, like Custom Audiences. You cannot create a Lookalike Audience based on general Facebook interests or keywords; you need data sources specific to your business.

When Should You Use Lookalike Audiences?

Lookalike Audiences are a powerful tool to consider in these scenarios:

1. Expanding Reach When Keyword or Interest Targeting Isn’t Effective: If you’re finding it challenging to reach the right audience through traditional targeting, a Lookalike Audience can help you reach potential customers who are likely to engage with your product or service.

2. Reaching New Audiences for Retargeting Campaigns: Use Lookalike Audiences to find new potential customers who resemble those who have previously engaged with your content, and use retargeting ads to nurture their interest.

3. Scaling Facebook Ad Campaigns: As you scale, consider expanding to broader Lookalike Audiences (such as 2% or 3%) to reach a wider range of potential customers while still maintaining a level of similarity to your original audience.

Creating Lookalike Audiences: Best Practices Recap

1. Start Small: Begin with a 1% Lookalike Audience to ensure highly relevant targeting and gradually expand if needed.

2. Quality Over Quantity: Use highly-engaged seed audiences, as they will yield higher-quality Lookalike Audiences.

3. Split-Test Thoroughly: Test Lookalike Audiences against other audiences to gauge effectiveness.

4. Exclude Existing Customers: Avoid wasting budget on people who’ve already converted

I hope you’ve been able to get a thing or 2 or more from this post. Let there be a difference between you that read this and someone who hasn’t, don’t go around with the same view you had earlier.

See you in my next blog❤️