Facebook is an enormously powerful advertising tool. Facebook will then search its network and build a Lookalike Audience (containing similar users to the source audience, but importantly ones that haven't visited your site before) consisting of new customers who can then be served ads on the platform.
As previously discussed, there are a few ways to do this: you can upload a Customer List of email addresses or phone numbers, build a website custom audience (WCA) based on a Facebook pixel that tracks a user's behavior on your website, or build an audience using events in your mobile app.
You can use the lookalike audience to market to contacts in Facebook the same way you use a custom audience. Smaller and regional businesses may want to start with a 1% audience and dial it up as Reach needs to be expanded. By utilising lookalike audiences, Facebook will analyse the Custom Audiences for patterns and identify other users who are similar.
Lookalike Audiences are a way to reach brand new people on Facebook; if you're familiar with AdWords Similar Audiences , Lookalikes are very similar (except better). If you have a customer list, you can upload that list to Facebook and create a custom audience of your buyers.
For me though interest targeting is still a big deal and its will continue to play a massive role in most of the campaigns I run. In doing so, Facebook will identify the key similarities between members of the original custom audiences and find similar users for you to target in a new campaign.
Create a custom audience of people who visited your website (ideally use the audience of people who added to cart or at least viewed a product). Segmenting by lifetime value, average order value and other indicators of customer quality is important when building seed audiences.
When performance is driven primarily by an intent pool, not broader characteristics of the target audience, once it is exhausted, Facebook will perform like standard display media. Facebook will allow you to use a source audience of as few as 100 people, but bigger numbers increase the likelihood that the data will be relevant, so my recommendation is at least 1,000.
It may be tempting to create a large audience but the larger the audience, the less it will have in common with your current customers. When creating Facebook Lookalike Audiences, it's best to keep them small rather than target 10% of a country's population.
Facebook collects user activity data on Facebook and Instagram (who their friends are, what pages they like, posts they engage with, etc), but it also collects data on what it's users do across the Internet. The 10% audience size is the largest possible targeting option, but it's the broadest match of all audience sizes.
That's what Facebook Lookalike Audiences are all about. Re-targeting ads posted on Facebook use a snippet of code, called a pixel, that is manually attached to your site. Ideally you'll want data from several hundred—or even a few thousand—customers to input into Google and Facebook (Facebook recommends anywhere from 1,000 to 50,000 of your best customers ).
If you have an audience, you'll select which Custom Audience to use. In this month's experiment, we tested three Facebook Lookalike Audiences to see whether targeting 1%, 5% or 10% of people work best. I mean that if you leverage videos on Facebook and this is how you acquire your follower base, the same content should be applied to your lookalike campaigns.