Create Meaningful Connections With Custom and Lookalike Audiences
Learn effective ways for reaching consumers most likely to engage.
Last week, we shared three steps to an effective audience conversion strategy. One of those steps is to test different audience types, including custom and lookalike audiences.
This week, we will take a closer look at these audience types. By enabling you to pair the right consumers with the right messaging and offers, custom and lookalike audiences are helping marketers engage consumers in more meaningful ways. Read on to find out how.
Most social media platforms allow you to create a custom audience from a list of existing customers or other contacts you want to reach. By segmenting your list before creating the audience, you can get more specific with your targeting. For example, you may want to target a segment who would find a product especially useful based on a past purchase, or you may want to exclude a segment who have already purchased the product you are promoting.
To create a custom audience, you typically upload or import a list. The list is hashed locally on your browser as it’s uploaded. Hashing protects and secures people’s information by turning the data in your list into numeric codes that can’t be reversed.
The hashed list is then encrypted and securely sent to the social media platform, such as Facebook. There, it’s matched against the platform’s existing list of users’ hashed IDs, and matches are added to your custom audience.
Lookalike audiences are made up of individuals who are likely to be interested in your product because they are similar to the people who are on the segmented list you’re using.
You can create a lookalike audience from a variety of sources, but a custom audience made up of a segment of your current customers is often a good place to start. Facebook recommends using a group of 1,000 to 50,000 of your best customers based on lifetime value or engagement.
Lookalike audiences are an effective way to increase campaign reach. By connecting with people who act like your current customers or other target audiences, you can focus your ad spend on those most likely to engage with your products and services.
To learn how Denim is empowering marketers across the financial services industry to make meaningful connections with consumers, read our ebook Localizing & Micro-Targeting Mobile Advertising at Scale.