Lookalike Audiences are a powerful feature offered by Meta for building custom audiences to create highly accurate targeting.
They allow advertisers to reach new people who are most likely to be interested in their business as they share similarities with their existing customers such as purchasing habits, personas, and online behaviors.
Step 1: Source Audience.
The process begins with creating a "source audience," which is a group of people who have already engaged with your business in a some way.
For this example, let's use a list of your existing customers.
This source audience provides the foundation for the lookalike audience. The more robust and specific your source audience is, the better the results.
Step 2: Matching.
Meta’s algorithm analyzes the characteristics and behaviors of the individuals in the source audience. This includes a variety of data points such as contact information, demographics (age, gender, location), interests, online behaviors, and interactions with your business.
The platform leverages its database of user information to find commonalities among your source audience members. This involves looking at factors like purchasing behaviors, page likes, app usage, and more.
Step 2: The Lookalike.
Using the insights gained from the source audience, Meta's algorithm identifies a larger pool of users who exhibit similar attributes, personas, and behaviors. These users are grouped into what is now called, your "lookalike audience".
Advertisers can choose the size of the lookalike audience, typically ranging from 1% to 10% of the total population in a chosen location. A 1% lookalike audience will be most similar to the source audience, and is typically the best starting recommendation.
Over time your lookalike will continue to learn and grow as Meta continues to collect data.
The Benefits
Precision Targeting: Businesses can reach new potential customers who are statistically more likely to convert, based on their similarity to existing customers.
Scalability: By expanding the reach to similar users, businesses can grow their audience without losing the personal touch that comes from targeting customers with known personas.
Cost-Effectiveness: By focusing ad spend on users who are more likely to be interested in taking action, businesses can achieve better ROI on their advertising campaigns.