Increase ROAS with Facebook Lookalike Audiences
October 5, 2021
October 5, 2021
What makes Facebook a powerful marketing tool is the detailed targeting options based on the data Facebook tracks on its users’ interests and behaviors.
Facebook has three audience types that you can set up for targeting: Saved, Custom, and Lookalike.
Lookalike audiences are one of the most powerful targeting options on Facebook.
If you’re not familiar Lookalike Audiences, they use an existing audience to create a new audience of people that “look like” the original audience.
For example, if people purchase products on your website, you can track those purchases using the Facebook pixel. The Facebook pixel is a snippet of code that you put on your website and it notifies Facebook that there’s activity happening or an action that took place by a user. That user information is stored in Facebook and allows that action to be attributed to your campaigns. It also lets you build lookalike audiences based on desired actions that take place on your website or landing page.
For example, when building a lookalike audience, you’re essentially telling Facebook: “Show my ads to people that have similar characteristics to those that have already purchased on my website.” And it is perfectly equipped to do exactly that.
When you create a lookalike audience, you have the option to create audiences of different sizes up to a 10% lookalike. A 0 – 1% lookalike will be the most similar to your original audience, while a larger percentage will focus more on the greatest common denominators. The smaller your spread percentage, the more “lookalike” your new audience will be.
However, we’ve experimented extensively with creating audiences up to 10% and in different ranges, and we’ve found a variety of different outcomes. You can do individual audiences for each 1% interval, or you can group in ranges like 1-5% and 6-10%.
You can create multiple lookalike audiences at once to reach more, fewer, or different people. For your first lookalike audience, it might be a good idea to keep the spread fairly low – between 0 and 5%. But this decision also depends on your budget and ad set management.
If our budget is lower for an ad set, we might just do two audiences with a 1% spread or experiment with a 2% spread. This will be less costly and leave us with audiences most similar to our proven customers – but smaller percentages also mean our ads will ultimately reach fewer people.
Of course, your options are not between one large or one small audience – it can be a strong strategy to create multiple audiences.
If our budget is higher, we might do 5 audiences with a 1% spread up to 5%, and a single 6-10% audience. This will be more expensive if you want your ad sets to exit the learning phase quickly, but you will reach many more potential future customers and leads.
We have also tested combining lookalikes into two audiences: 1-5% and 6-10%. This strategy allows you to reach the most amount of people while keeping your number of ad sets low so Facebook can optimize if you are using Campaign Budget Optimization, which you can learn more about here.
There are dozens of ways to experiment with lookalike audiences.
The main message is, don’t just create a single 1% lookalike audience and give up there. Instead, try wider spreads and higher percentages to see how those audiences affect your performance.
We’ll frequently see a random 2-3% lookalike audience outperform a 1% audience for no reason whatsoever. It just happens sometimes.
We have been working with ParaCore for just over 6 months. There are 4 things that really stand out with this organization responsiveness, communication, openness, and expertise. We came to them with several challenges and they really stepped up in a big way. They have always been available and provided regular updates. They are always very open about what they are seeing and what is happening. They are definitely experts in the paid search areas. They have no problem sharing exactly what they are doing. We are looking forward to a long term partnership.
I was introduced to Paracore from a respected industry professional. I interviewed several teams and decided to go with them. I was impressed from day one and continue to be six months later. They were able to quickly understand our company, goals, challenges and brand, and started driving results soon after onboarding. What I love about them most (in addition to the influx of leads :)) is they are very thorough and proactive. In fact, I consider them to be an extension of my internal team, and I feel confident knowing that I have them always looking out, keeping me in the loop and providing continued results. Every member of the team-- Veronica, Bekah and owner, Adam-- have been a pleasure to work with every step of the way. I highly recommend them for anyone needing expert level PPC strategies and executions.
What a great company to work with, they are all very professional, knowledgeable and always there when you need them. Thank you ParaCore for making it so easy to work with you.
We have been partnering with ParaCore since 2018. Our account is complex and they love the challenge. They work hard to earn our business by presenting new trends, testing new methods and evolving our account each month. They are organized, quick, kind, accommodating, technical and they make an effort to understand our business.
Schedule some time to chat with our team so we can learn more about you and your business.