Advertising on Facebook is a great way to reach clients who are interested in your products, services, and brand. However, not all ads are created equal. Learn how you can use custom audiences and lookalike audiences to increase your ROI through Facebook advertising. This is good to go strategy especially after iOS 14.5 changes which puts a limitation on Facebook’s Pixel tracking.

What is Custom Audience?

Facebook custom audiences are a specific group of people that have previously engaged with your ads, website, apps, and meta sources which advertisers can target or re-target with their ads. Facebook can help create custom audiences through your sources like website (using Facebook’s Pixel tracker), App activity, catalogue & customer lists. With iOS 14.5 update, Facebook has adopted to include Meta sources (Facebook’s sources) to generate custom audiences. These sources are videos, lead form, Facebook page, Instagram account, Events, Instant Experiences, Shopping and On-Facebook listings.

What is Lookalike Audience?

Lookalike Audiences is a targeting feature on Facebook that allows marketers to reach new audiences that are similar to their existing customers. Marketers use customer data from their own website to find new people who have similar interests and traits. This is a cost-efficient way for them to reach new people who may not have heard about their business yet.

Optimising campaigns with Lookalike Audiences

Using Meta sources for creating Lookalike Audience is a good to go strategy to optimise Facebook ads. Fist things first, a targeted ad campaign should be run for few days to create an engagement either through a lead form or page likes etc. Then a Custom audience can be created for the users who have engaged to these sources followed by creation of Lookalike audiences. Going forward, these Lookalike audiences can be used for new ad campaigns. So far from our experience, this strategy has worked well with our clients to generate a good ROI, especially after iOS 14.5 updates which puts limitations on former tracking methods used by Facebook.

Pros and Cons of Custom and Lookalike Audiences

Custom Audiences can be a great tool for an advertiser. Facebook delivers ads to specific audiences based on the advertiser's specifications. The biggest benefit of this is that you're only advertising to people who are interested in the product or service. A downside is that it costs more per click and it may take longer for your message to reach your target audience. Lookalike Audiences share similarities with the Custom Audience, but don't require as much work up front because Facebook will automatically create a group of similar users. On the downside, these types of audiences are less targeted than Custom Audiences because they're created using Likes on Facebook as opposed to demographic data and other factors like income or interests, which means they may not be as interested in your product or service.

Conclusion

In conclusion, this blog has covered many different areas of advertising on Facebook. The first step is to understand the behaviors and motivations of your target audience. Then, create a Facebook Page and optimize it by including engaging content and a call-to-action. After that, make sure to advertise using both Custom Audiences and Lookalike Audiences because they will provide you with increased ROI (return on investment).