Facebook Advertisers Can Now Create Lookalike Audiences Based On Customer Lifetime Value Adweek

Lookalike audiences are the Facebook feature when it comes to audience targeting. In this article, we discussed about how the 1% to 10% match leads to cold audience with top of the funnel marketing opportunity, however, if you carefully build your LTV column and tell Facebook about what which customers are higher LTV to you and which ones aren't, that data can create lower funnel audience for you.

A lookalike percentage says, Give me x% of the selected country users who are most similar to my seed audience.” For example, if you create a 1% lookalike in the US, the output will always be around 2.1 million profiles, since this is more or less 1% of the total number of Facebook users in the US.

Once Facebook a good understanding of who the people in your custom audience are, Facebook will create a new audience (with new people) that are closely related to your custom audience. You can create a lookalike audience based on users who subscribe to your email list, or those who have already taken a valuable action for your organization, like an app install or a petition signature.

Permissions for custom audiences. Create a unique Ad Set for each segment (custom audience) you want to target. However, because the 10% size will be the broadest match to the Source Audience, you may find engagement and conversion rates are lower than you'd like.

The recommended source audience size should be at least 1,000 people or more, the bigger the audience, the better. From this custom audience, you can create a Value-based Lookalike Audience. At this stage, by using a custom audience, advertisers are targeting customers who are familiar to, and more likely to spend more, with the brand.

Fun tip: You can still layer in interest and demographic targeting to these audiences. You then need to create a Website Custom Audience - you do that in the Audiences tab in Ads Manager. However, even though the reach will be the same in both cases, the quality of the Lookalike audience will be much higher with a seed of 5,000.

As many of your clients will be similar, your lookalike audience will contain both women 35-50 and people interested in bodybuilding. This also allows you to assess the long-term behaviors of the customers acquired through these channels. Doing so allows Amazon sellers to target ads to people who Facebook deems are similar to people who have bought their products on Amazon.

Anyway, regarding Lookalike Audiences, make sure the custom audience you use comes from visitors of that particular blog post, rather than generic website visitors. Select the Create Audience” drop-down and click Lookalike Audience”. For some perspective, I ask Rick how big audiences with these different size options are.

Then click on the Create Audiences option and select Custom Audience. A lookalike audience uses several kinds datapoints as a seed” and an audience for your ads is built of similar users. Next, you'll import a customer list to AdWords—this can be from your email list, past website visitors, mobile app users, or YouTube users (these are the categories to choose from in AdWords > Shared Library > Audiences).

You'll start by uploading a source audience in Facebook Ads Manager (more on this shortly), which will then trigger Facebook to launch an algorithm that scans the group. This is possible by including the lookalike audience in the custom audience section and ‘baseball' in the ‘detailed targeting' section.

There's a couple of extra things that you can do with the look-alike audiences to actually help you improve your targeting as well as expand your reach. For example in the image below the audience is from the a list exported to target lookalikes of users predicted to have a the highest likelihood of pageview in the next 30 days.