Introduction
Facebook Ads provides powerful audience targeting options to help businesses reach the right people. Two of the most effective targeting features are Custom Audiences and Lookalike Audiences.
In this guide, we’ll explain what they are, how they work, and how to use them to improve your ad performance and increase conversions.
What is a Custom Audience?
A Custom Audience is a group of people who have already interacted with your business in some way. Instead of targeting random users, you can retarget people who are already familiar with your brand.
Types of Custom Audiences
1. Website Visitors (Pixel-Based Retargeting)
🔹 Targets people who have visited your website.
🔹 Requires Facebook Pixel to track user behavior.
🔹 Example: Show ads to people who added items to their cart but didn’t complete the purchase.
2. Customer List (Email or Phone Number Matching)
🔹 Upload a list of emails or phone numbers to create an audience of existing customers.
🔹 Example: Run a loyalty campaign for previous buyers.
3. Engaged Facebook & Instagram Users
🔹 Targets people who have interacted with your Facebook page, Instagram profile, or posts.
🔹 Example: Retarget people who liked, commented, or watched a video.
4. App Users (For Mobile Apps)
🔹 Targets users who installed or engaged with your mobile app.
🔹 Example: Show ads to users who installed your app but haven’t used it recently.
5. Video Viewers
🔹 Targets people who watched a certain percentage of your video ads.
🔹 Example: Retarget users who watched 50% of your ad but didn’t click.
👉 Why Use Custom Audiences?
✅ Retarget users who already showed interest.
✅ Increase conversions by reminding potential customers about your brand.
✅ Reduce ad costs by focusing on warm audiences.
What is a Lookalike Audience?
A Lookalike Audience helps you reach new people who are similar to your existing customers. Facebook analyzes your Custom Audience and finds users with similar characteristics, interests, and behaviors.
How Lookalike Audiences Work
1️⃣ You create a Custom Audience (e.g., customers who made a purchase).
2️⃣ Facebook identifies common traits among these users (age, location, interests, behavior).
3️⃣ Facebook finds new users who match these characteristics.
Choosing Lookalike Audience Size (1%-10%)
- 1% Lookalike = Highly similar to your source audience (higher quality, lower reach).
- 5%-10% Lookalike = Broader audience, but less precise targeting.
👉 Why Use Lookalike Audiences?
✅ Helps find new customers similar to your best existing ones.
✅ Scales campaigns while maintaining targeting accuracy.
✅ Works well for businesses expanding to new markets.
How to Create Custom and Lookalike Audiences in Facebook Ads
Step 1: Create a Custom Audience
1️⃣ Go to Facebook Ads Manager → Audiences.
2️⃣ Click Create Audience → Custom Audience.
3️⃣ Select the type of audience (Website Visitors, Customer List, Video Views, etc.).
4️⃣ Set conditions (e.g., people who visited your website in the last 30 days).
5️⃣ Click Create Audience.
Step 2: Create a Lookalike Audience
1️⃣ Go to Audiences → Create Audience → Lookalike Audience.
2️⃣ Choose a Custom Audience as the source.
3️⃣ Select the target country and audience size (1%-10%).
4️⃣ Click Create Audience.
Best Practices for Using Custom & Lookalike Audiences
✅ Use Custom Audiences for Retargeting Campaigns
♻️ Example: Retarget people who added items to their cart but didn’t purchase.
✅ Use Lookalike Audiences for Scaling
📈 Example: If your Custom Audience consists of loyal customers, create a Lookalike Audience to find similar users.
✅ Combine Both Audiences for Maximum ROI
🎯 Example: Show ads to a Lookalike Audience, then retarget those who engaged using a Custom Audience.
Conclusion: Boosting Ad Performance with Smart Targeting
Using Custom Audiences and Lookalike Audiences helps businesses maximize their ad budget by targeting the right people. Whether you’re retargeting engaged users or reaching new potential customers, these advanced audience features can significantly improve conversion rates and lower ad costs.