How to Create Facebook Lookalike Audience
How to Create Facebook Lookalike Audience?
Among Facebook ads, which are attractive for their high accuracy, similar audiences are attracting attention as a more efficient way to attract customers. However, do you know that you need a little trick to master it? In this article, we will explain how to create Facebook Lookalike Audience.
There are three main types of Facebook audiences in Facebook advertising;
- Facebook Core Audiences
- Facebook Lookalike Audiences
- Facebook Custom Audiences
If you are considering using Lookalike Audiences, please take a look.
1. Characteristics of Lookalike Audiences in Facebook Ads
A lookalike audience is a function that expands your reach to users who are presumed to have some kind of relationship with your existing customers.
The lookalike audience feature of Facebook ads is the ability to accurately target users with common characteristics.
Advertisements are then delivered efficiently to users extracted based on various Facebook data.
Due to its efficiency, it is often used in SNS (Social Networking Service) such as Twitter.
It is no exaggeration to say that it is an indispensable function for SNS marketing.
1.1 Ad delivery to users with common characteristics
A major feature of similar audiences is to find users with characteristics similar to those of existing customers who have high usage rates and distribute advertisements to them.
By the way, Facebook has a similar feature called “Custom Audiences”.
Custom Audience is a function that extracts existing customers among Facebook users.
Lookalike audiences, on the other hand, extend your reach from your existing customers, so you can only reach out to people who are likely to share common traits with you.
It can be said that it is an efficient ad delivery.
1.2 Accurate targeting is possible
You can make detailed settings when creating lookalike audiences, which leads to accurate targeting.
For example, by specifying the size, it is possible to control whether to increase the similarity or increase the number of potential reach.
In addition, since the source audience, which is the basis of targeting, can be limited to high-value customers, the quality of search is improved.
It accurately grasps the characteristics such as user information, hobbies, and interests on Facebook that are similar to good customers, and finds new prospective customers.
Therefore, it is possible to efficiently distribute advertisements to people who are likely to have demand that they have never had the opportunity to approach.
Point To Note
Facebook Lookalike Audiences allow for targeted and efficient ad serving.
2. Why Facebook Ads Lookalike Audiences Are So Accurate
Facebook ads’ Lookalike Audiences are said to be highly accurate, but the reason for this is the Facebook registration method.
As many of you know, Facebook is based on real-name registration.
An approach that utilizes attribute information such as the registrant’s name, location, and age leads to high accuracy.
On the other hand, other advertising media can only use cookie-based behavioral information.
Behavioral information can also be used on Facebook, so targeting can be done with unparalleled accuracy in combination with attribute information.
3. Benefits of Lookalike Audiences for Facebook Ads
The benefits of Facebook Ads Lookalike Audiences are that you can reach potential customers and they are easy to manage.
If you want to reach efficiently and accurately, it’s exactly the right way to do it.
It is also recommended if you have not narrowed down your target at this time or if you are unsure about your targeting settings.
Learn more about the benefits of Lookalike Audiences here.
To get the most out of it, make sure you understand the benefits.
Reference: If you would like to learn Facebook Ads in-depth, at NIDE, we have two short-duration courses; the Social Media Manager Course and Performance Marketing Course. For more details, you may contact us.
3.1 Reach potential customers
The reason you can reach high quality prospects is because they are based on converted customers.
A conversion is when a website visitor takes some action.
For example, inquiries from the website, document requests, product (service) purchases, etc.
In other words, creating a lookalike audience of converted customers can attract people who are more likely to visit your website.
You can also use the same method based on mobile app actions.
3.2 Easy to manage
Lookalike audiences automatically update the list, making it easy to manage.
It’s a very useful system because it creates a list of users who are similar to the source audience.
Furthermore, the processing up to the distribution of advertisements is automatically completed.
By the way, the update frequency of the list is about 3 to 7 days.
It can be said that it is a big merit to save the trouble of daily management.
Point to note
Facebook’s similar audience has the advantage of being easy to manage and extracting highly accurate prospective customers.
4. How to Create a Lookalike Audience for Facebook Ads
Creating a lookalike audience for Facebook involves the following main steps:
- Determine your target audience
- Specify country/region
- Specify your audience size
Before we get started, let’s first make sure the creator is the original admin.
You can’t do anything without administrator rights.
If you also have admin access to an ad account, you can create lookalike audiences in Custom Audiences for that account.
Similarly, if you have admin permissions for the app, you can create Lookalike Audiences for the app.
4.1 Specify target audience
The first task is to specify the target demographic.
First, select “Create Audience” from “Audience” and select “Lookalike Audience”.
Ad account admins can use Custom Audiences here.
Set targets based on criteria such as order volume, purchase amount, and engagement.
It is recommended to base it on the data of about 1,000 to 50,000 high-value customers.
4.2 Designate Lookalike Audience Countries/Regions
Next, specify the country or region of your lookalike audience.
You can select multiple countries.
However, please note that after specifying it, it will only be displayed for users in the specified country.
The conditions are the same when the list is automatically updated.
A source audience of at least 100 people per country is required to have clear criteria.
4.3 Specifying an audience size
Finally , specify the audience size in the range of 1-10%.
A minimum similarity of 1% (0.01) will reach fewer users but will be more relevant to the source audience.
On the other hand, the maximum 10% will reach more users but will be less relevant to the source audience.
Therefore, if you value high accuracy, it is recommended to set it at 1% first.
If you extract it and it seems that the number is small, let’s expand the size.
5. Audience size is related to similarity
The audience size you specify when creating a Lookalike Audience is an important part that greatly affects the similarity score.
The number of people an ad is served to has a strong impact as well.
For example, if Japan were the only designated country, 1% would be about 320,000 people and 10% would be 3.2 million people, so the breadth of the range would be obvious.
The only thing to keep in mind is the cost aspects such as CPC and CPM.
If you specify 1%, the CPC/CPM may skyrocket due to the high accuracy, so in some cases it is better to consider the balance.
Point to note
Specify the audience size while considering high accuracy and cost.
6. Type of target group that serves as a standard
When creating a Lookalike Audience, it all starts with specifying your target demographic.
There are types of target groups that serve as this standard, so it is important to select the one that suits your company.
By the way, the target group is required to be at least 100 people.
However, Facebook recommends 500 or more people, so it’s better to have a large number of people.
From here, we will introduce the types of target groups in detail.
6.1 Customer audience
Customer Audience is a function that extracts your company’s existing customers from Facebook users.
Upload information such as name and email address to Facebook and find matching users who converted.
By the way, you can create up to 500 types of customer audiences in one ad account.
Build on your customer audience to reach new prospects who are similar to your existing customers.
This is the most accurate method among the target demographic types.
6.2 Fans of the specified Facebook page
The second target group is to like the designated Facebook page! It’s a fan-based method.
We are extracting people who are similar to the actions of these users on the website.
In other words, it means that the tendency of interest and interest is similar, so it is a mechanism that can efficiently deliver advertisements.
Even if it is not an existing customer, it can be said that the prospects are high because it targets users who are already interested.
As with your customer audience, you can expand your reach to prospective users you may not have had contact with before.
6.3 Conversion tracking pixel
A conversion tracking pixel is a method of creating a target audience using the Facebook pixel.
Create a Custom Audience to extract users who have converted from Facebook users.
Recommended if you find it difficult to provide your own customer data.
Comparing the height of accuracy, it is in the middle position among the three types.
7. Things to keep in mind when creating Lookalike Audiences
Lookalike audiences are attractive for their efficiency and accuracy, but there are a few caveats to creating them.
Of particular importance are:
- Need a business manager
- At least 100 people are required to create a source audience
- Don’t use phone numbers in source audience creation
Be sure to check it out in order to take full advantage of the lookalike audience.
From here, we will introduce the points to note in detail.
7.1 Need a business manager
Leveraging lookalike audiences requires a Business Manager.
Business Manager is a free platform that allows you to centrally manage your advertising accounts.
You can use various marketing functions other than Lookalike Audience, so it is very convenient to have.
Anyone can create one, regardless of the size of the company.
You will be able to smoothly manage multiple accounts such as the app version and Instagram, as well as advertising accounts.
7.2 Requires a source audience of 100 or more
The source audience must be a list of at least 100 people.
Facebook recommends 500 or more, so 100 is probably not enough.
It is generally said that 1,000 to 50,000 people are good.
Also, if you are basing conversions on users, we recommend setting the number of days to include in your audience list to the maximum number of days.
This is to collect as many users as possible, the maximum number of days is 180 days.
7.3 Do not use phone number when creating
We recommend using your customer’s email address instead of their phone number when creating a lookalike audience.
First, in order to create a source audience, it must match the registration data of Facebook users.
However, since Facebook does not require a phone number to be registered, many users do not have a phone number registered.
Then the data can’t be matched and the source audience can’t be created, so use the mandatory email address instead.
However, if the email address is not the same, it will not match after all, so let’s prepare a lot of customer data.
Point to note
In order to create a lookalike audience, advance preparation such as business manager and customer list is important.
8. Conversion user exclusion settings
Another thing to keep in mind when creating a Lookalike Audience is to exclude conversion users.
By doing this work, you will be able to prevent the risk of delivering extra ads to existing customers.
To set exclusions, simply select the users you want to exclude when creating a Lookalike Audience.
It’s easy, but it’s also a task that is often overlooked, so let’s remember it.
Once your exclusions are complete, place your order and wait for your ad to be served.
Summary
Facebook Lookalike Audience efficiently extracts new prospective customers with highly accurate targeting.
Once you have made the settings that suit your company, all you have to do is wait for the ads to be delivered automatically.
In terms of time and cost, it is a very good method.
However, the points to note when creating the audience are very important, so don’t forget to check the final details so that there are no omissions.
Take advantage of lookalike audiences to extend your reach to more qualified prospects.
