Lookalike audiences (LA) is a term used primarily in the context of running paid advertising campaigns on Facebook. LAs are created on the basis of existing audiences who have already been exposed to a particular content or product. By collecting information about users, the ad manager makes it possible to reach people whose profiles are close to the advertiser-defined “best” customers.
By creating groups of similar audiences, it is possible, for example, to focus on demographic data or specific interests. This selection of potential advertising audiences allows you to reach people who are more likely to convert or make a purchase.
How does Lookalike Audiences work?
To create Lookalike Audiences, a company must first have a database of existing customers. From this data, Facebook (or another advertising platform) creates a group of people with similar characteristics and behaviours. The tool uses algorithms that analyse various factors such as age, gender, interests, purchasing behaviour, location and even education level to determine which individuals are most similar to the company’s existing customers.
Benefits of using Lookalike Audiences
- Increase ad reach – Lookalike Audiences allow companies to target ads to people who are more likely to respond to a particular offer. This allows a business to increase the reach of ads and reach new potential customers.
- Improve conversions – Targeting ads to people with similar characteristics and behaviours to a company’s existing customers allows for increased conversions. These people are more likely to make a purchase or use the services offered by the company.
- Saves time and money – Lookalike Audiences allows companies to effectively target ads to people who are more likely to respond to an offer. This allows the company to save time and money that would have been used to advertise ineffectively.
- Personalising the offer – With Lookalike Audiences, a company can create more personalised offers for its potential customers. By knowing what characteristics and behaviours characterise the company’s existing customers, the company can tailor its offers to the needs and preferences of its potential customers.