Facebook on Tuesday offered advertisers another tool to target consumers on the platform with Lookalike Audiences, a feature that lets them reach users similar to those in their Custom Audience databases.
Launched in late 2012, Custom Audiences lets marketers use existing data like email addresses, phone numbers and user IDs to inform their Facebook strategy. As the name implies, Lookalike Audiences is a tool that alerts advertisers to similar consumers
In a blog post heralding the new feature, Facebook noted that marketers can buy Custom and Lookalike audiences in conjunction with any ad buy
Example 1: A commercial maintenance company targets a 20 mile radius around downtown Denver. The marketing director might know that it costs 20% less to sell to and service customers who are within 10 miles of downtown. He can improve his results by increasing his bids by 20% for customers within 10 miles of downtown Denver, since these leads are more profitable.
Example 2: An online-only financial services company has modeled its average customer lifetime value by zip code. The company’s search specialist has been asked to achieve an average 8:1 return on ad spend (ROAS), which they define as average lifetime value divided by average cost per lead. The specialist downloads data from AdWords with cost per lead by zip code and pairs it with lifetime value for each matching zip code (example data). She looks for opportunities to improve her results by lowering bids in zip codes where ROAS is below the target and increasing bids in zip codes where ROAS is above the target. She makes her bid adjustment decisions in the third column and implements them in her enhanced campaign, re-checking the ROAS and volume impact for a few weeks and making changes as necessary. With legacy campaigns, she would have to set up a new campaign for every zip code with different bids, increasing the level of campaign management complexity and effort required.Experienced search marketers know that bids are an important contributor to campaign results, along with ads, extensions, keywords, and landing pages, so they’re sure to measure periodically and make adjustments. Remember, targeting too narrowly can limit your reach, clicks and conversions, so consider using selective location bid adjustments while targeting broadly. More tips on optimizing your campaigns using location are available in the AdWords Help Center.
Example 3: A national multi-channel retail business has been running AdWords campaigns to sell directly online and to drive people to its 400 local stores. The account has already set up location extensions, but it wants to improve its ad visibility even more when customers are searching within a short distance from its stores. With just a few clicks, its search agency adds a single “2.0 mile around each location extension” target and sets a +25% bid adjustment.