It was my usual day to use Facebook ads to promote my brand page when this pop-up from Facebook asking me to create Lookalike audience for my ads. First let us understand what is “Lookalike audience” on Facebook. Well, it means people similar to ones that are already interested in your business. Factors such as location, age and interests are used by Facebook’s artificial intelligence systems to find similar people. I would consider it a smart move as it falls in line with market segmentation basics where you are identifying your target customer groups, and then Facebook is making your job easier by targeting them on Facebook!
Next, I was prompted by columns such as lookalike audience source, country, audience size where a scale of 0 to 10 means percentage of audience of that country targeted by you. The minimum scale is 1 which means you cannot target 0% audience by any chance!
Advanced options here include creating different lookalikes on the basis of revenue per conversion or lifetime value of customers. One can bid differently for audiences with different conversion values. The software suggests minimum 5 audience size for 3 audience sets.
Next, I was prompted to create a custom audience for my ads.
I decided to choose engagement on Facebook as an option and anyone who had visited my Facebook page in the past 30 days as the criteria.