When talking about social media advertising, Facebook has become probably THE most powerful platform to go to. Especially with this thing called Facebook Lookalike Audience.
How do lookalike audiences work?
This concept is based on a simple fact that the people who are similar to your existing users are most likely to convert when targeted. This way you don’t need to even know your exact audience, you just need to have a base of similar ones that already knows your product.
Here is how it works:
STEP 1: Source
To set up a Facebook lookalike audience, first, you need your source audience that will be used a reference point. Go to Audiences, and click „Create a Custom Audience“. You can build this source audience with your email list, web traffic or similar things like explained here.
Note: In order to create a proper Facebook Lookalike audience you have to have at least 100 people in your Source audience to let Facebook match the uploaded data. Also, Lookalike audience works ONLY within the same country. You can only include people from one country, you decide which. [Learn More]
STEP 2: Create a Facebook Lookalike Audience
Now you go to your Ads manager > Tools > Audiences. Click „Create Audience” and select „Lookalike Audience“. Now you have to choose the source audience that will be used. It should look like this:
First, you should decide which source audience you want to target. Below that you need to choose the country you want to target. The last thing is the size. You can choose between different sizes of your Facebook lookalike audience.
But wait, shouldn’t the bigger-sized audience always be better? NO!
The thing is, the larger the audience the fewer similarities they have. According to Facebook lookalike algorithm, if you choose the maximum size, sure they will be some similarities, but not as it would be if you choose the smaller one. It all depends on you. When you choose the size of your audience you are ready to go. Click „Create Audience“.
STEP 3: Work the magic
Now when you have your Facebook lookalike audience it is time to put it to work. After you clicked „Create Audience” it may take 6-24 hours for Facebook to come up with your Lookalike audience [See Why].
You can check the status of it in your Ads Manager. Once the audience is ready the easiest ways to use it is just to select it and click „Create Ad“.
When you create your ad, the audience for it will already contain your Lookalike audience, and you can add whatever you think is necessary to get more reach. Parameters like age and gender might help you as usual.
That’s basically it, you now know how to create a Lookalike audience. It’s actually great because based on your source audience you can get much bigger reach without even knowing who those people are. It’s just important that the are similar to ones you already have and it should be a piece of cake from that. Overall it is a great way to scale advertising more quickly and efficiently than finding and testing the combinations for yourself.
Also, you can check the practical use of Facebook audiences in our [case study] where we managed to get over 600% on our investment.