Facebook is arguably the most powerful tool in the digital marketing mix. The capacity to reach 31 million active UK users on a daily basis presents a huge opportunity, but it can also very quickly eat through an entire marketing budget in just a few hours.
The key to a successful facebook campaign? Targeting.
Know your customer
Most businesses will be broadly aware of their customer profile. For conservatory installers, it’s likely to be homeowners aged between 35 and 75 with an above-average income. It’s safe to say that for most businesses, that is where their profiling capabilities end.
But what about gender? Marital status? Level of education? Their socio-economic profile? Their interests, hobbies and profession? It could be that your best customers are 45-55 year old men with three grown-up children, a keen interest in golf, an income of £35k-£45k a year and who completed their education at 18.
Knowing this information allows you to target your campaigns with laser-pointed precision, which will ultimately result in higher conversion rates, more sales and a lower cost per acquisition.
How do Facebook lookalike audiences work?
By supplying Facebook with some basic information about your customers, it will attempt to find these users within its network. Once matched, it will then identify their common qualities based on demographic data and interests, and also shared behaviours and interactions (likes, post interactions, purchases, friend networks).
Facebook then extrapolates this data and attempts to find other users that match the same patterns. How broad or narrow the criteria is uses can be controlled by the advertiser: the larger the audience the more broadly Facebook will search for lookalikes (similarity vs reach) so it’s best to keep it fairly tight, at least to begin with.
It’s worth noting that you don’t need to upload your customer database. If you already use Facebook to target new customers then it can use the conversion data it already holds to identify a lookalike audience.
Using a lookalike audience is a great way to boost your ROI as it typically results in a higher click through rate (as the audience will find your advert relevant and engaging) and you’ll be rewarded with a lower cost per click as a result.
Lookalike audiences are a powerful way to target Facebook users with a high propensity to engage with your advert, resulting a greater return on your facebook spend and should be present in every digital marketing plan.Return back to Knowledge