What is a Lookalike Audience on Facebook? – Explained

Lookalike audiences are one of Facebook’s most powerful advertising tools. 

A lookalike audience allows you to reach new people who are similar to your best existing customers. 

This article will explain what a lookalike audience on Facebook is, how it works, its benefits, and provide a step-by-step guide to creating one.

Understanding the Concept of Lookalike Audiences

So what exactly is a lookalike audience on Facebook? 

In simple terms, it’s a way to reach new people who are likely to be interested in your business because they share traits with your existing customers.

Facebook looks at the common characteristics of people in a “source audience” that you select – like an email list of your current customers. 

It then finds other Facebook users who share demographic information, interests, and online behaviors with that source audience. 

The result is an entirely new “lookalike” audience filled with potential customers.

For example:

• Let’s say you sell running shoes. Your typical customer is a 25-35 year old woman interested in fitness and wellness.
• You could use your customer email list as a source audience.
• Facebook would then find other 25-35 year old women on Facebook with similar profiles and interests to create a “lookalike” audience.
• You can then show ads to this new lookalike audience of potential customers.

The Importance of Lookalike Audiences in Marketing

Lookalike audiences are so valuable because they help you expand your customer base in an extremely targeted way. 

Rather than guessing at who might like your products, you can rely on Facebook’s data to find people similar to your proven customers.

Benefits of lookalike audiences include:

1. More effective ad targeting
2. Reduced ad costs
3. Higher relevance scores
4. Increased conversion rates

Essentially, lookalike audiences allow you to grow your business by reaching new high-quality leads. 

You can feel confident that your ad budget is being spent on people with a high potential to convert.

How Facebook’s Lookalike Audiences Work

To create a lookalike audience, you’ll need a “source audience” to base it on.

This is typically a Custom Audience created from your existing business data, like:

• Customer email lists
• Website or app traffic
• Facebook page engagement

The source audience should represent your best customers – the ones you’d like to replicate. 

Facebook then analyzes that source audience to identify common traits and find new people who share those traits.

You can choose the size of your lookalike audience, from 1-10% of the total population in your target countries. 

A 1% lookalike audience will be smaller but most closely match your source. Going up to 10% will increase your reach but lower the similarity.

Facebook’s algorithms are extremely sophisticated at finding the right new audience for your business using the source audience you provide. 

The more data in your source audience, the better your results.

Benefits of Using Lookalike Audiences on Facebook

The three main benefits of Facebook lookalike audiences are:

1. Increased Reach – Lookalike audiences allow you to expand your customer base to entirely new groups of relevant people. Instead of marketing to the same people repeatedly, you can bring new potential customers into your funnel.
2. Improved Conversion Rates – Because lookalike audiences so closely resemble your existing customers, they are more likely to be interested in your offering. Many businesses see higher conversion rates and lower costs when targeting lookalike audiences compared to more generic targeting.
3. Enhanced Targeting – Lookalike audiences are inherently highly targeted and relevant for your business. You can layer on additional targeting options to get even more specific, like purchases, life events, and interests. The result is a powerful audience for growing your business.

Steps to Create a Lookalike Audience on Facebook

Creating a Facebook lookalike audience is a straightforward process:

1. Choose a source audience – This can be a Custom Audience from your customer file, website traffic, app activity, or Facebook engagement. Select a source audience that aligns with your business goals.
2. Select your target country – Choose the countries where you want to find a similar audience. You can create lookalike audiences for a single country or a group of countries.
3. Choose your desired audience size – Select what percentage of the population you want to target, from 1-10%. Start with 1% for a highly relevant audience and go up from there if you need more reach.
4. Create your lookalike audience – Facebook will generate your new lookalike audience for ad targeting. This may take up to 24 hours. You can then use it for your Facebook ad campaigns.

Best Practices for Using Lookalike Audiences

To get the most out of lookalike audiences:

• Use high-quality source audiences that represent your ideal customer.
• Avoid overly small source audiences that lack enough data.
• Refresh your lookalike audiences periodically as your customer base changes.
• Start with a 1% audience size for maximum relevance.
• Layer lookalike audiences with additional targeting criteria as needed.
• Test different source audiences to optimize performance over time.

Conclusion

In summary, a lookalike audience on Facebook is a game-changing tool for reaching new potential customers who are similar to your existing audience. 

By leveraging Facebook’s vast data, you can expand your reach, improve your conversion rates, and grow your business in a highly targeted way. 

Use the tips and best practices outlined here to start benefiting from lookalike audiences in your own Facebook advertising.