Lookalike audiences, a marketing and targeting tool on Facebook, allows you to reach new customers who share similar characteristics and preferences with existing customers.
Detailed Explanation
Facebook’s lookalike audiences is an effective marketing tool that uses a custom audience as its reference to identify new consumers. It helps find customers with similar interests, demographics, online behavior, preferences and purchasing patterns to your existing customer base.
Lookalike audiences compares to LinkedIn’s “matched audiences” and Google’s “similar audiences.” Like these platforms, you can select your target criteria on Facebook. The segmentation feature uses a complex algorithm based on the factors mentioned above, making the tool data-driven, fact-based and less reliant on assumptions.
Facebook then uses its massive data bank to find relevant results. This process ensures you maximize your reach, reduce ad spend and improve customer acquisition costs for new leads.
Despite the temptation to reach as many people as possible, it’s best to filter results to reach a smaller, targeted audience. Facebook recommends creating batches of 1,000–50,000 users each.