A lookalike audience is a group of people who share similar characteristics or behaviours with a company’s existing customers or target audience.
Lookalike audiences are created using data analysis techniques that identify commonalities and patterns among a company’s customer base or target audience and then use that information to identify and target new customers likely to be interested in the company’s products or services.
Lookalike audiences are often used in digital advertising. They can be used to target ads to potential customers who share characteristics with existing customers and are, therefore, more likely to convert.
Importance of Lookalike Audience
- Allows businesses to reach new potential customers who are likely to be interested in their products or services
- Increases the efficiency and effectiveness of advertising campaigns by targeting people who are more likely to convert
- Helps businesses expand their customer base and reach new audiences
- Provides insights into customer characteristics and behaviours that can inform marketing strategy and drive sales
- Helps businesses create more targeted and effective marketing campaigns that resonate with their target audience
- Can improve return on investment (ROI) by reducing ad spend on audiences that are less likely to convert
- Enables businesses to find and reach new customers who are similar to their existing customer base, which can lead to increased customer loyalty and repeat business.
How to create a lookalike audience?
Here are the general steps to create a lookalike audience:
- Define your source audience: First, you need to identify the people who will serve as your source audience. This can be your existing customers, email subscribers, website visitors, or social media followers.
- Collect data on your source audience: You’ll need to collect data on your audience, such as demographic information, interests, and behaviours. This data can be collected from your website, social media accounts, customer relationship management (CRM) system, or other sources.
- Upload your source audience data: Once you have the data on your source audience, you’ll need to upload it to the advertising platform you’re using. This could be Facebook Ads Manager, Google Ads, or another medium.
- Choose your target location and audience size: Next, you’ll need to select the location you want to target and the size of your lookalike audience. The size of your audience will depend on the size of your source audience and the level of similarity you want to achieve.
- Set your audience similarity level: You can set the level of similarity between your source audience and your lookalike audience. A higher level of similarity will result in a smaller audience but a more accurate match.
- Create your lookalike audience: Finally, you can create your lookalike audience and begin targeting your ads to this audience. You can use the lookalike audience to target ads on various platforms, including social media, search engines, and display networks.
How to use a Lookalike Audience?
Here are some general ways that businesses can use lookalike audience targeting to reach potential customers:
- Ad targeting: Businesses can use lookalike audiences to target their ads to people who share similar characteristics with their existing customers. This can improve the efficiency and effectiveness of their advertising campaigns and increase the likelihood of conversions.
- Content personalization: Lookalike audience targeting can also be used to personalise the content that businesses show to potential customers. For example, an e-commerce business could show personalised product recommendations to people who are part of their lookalike audience.
- Email marketing: Lookalike audiences can also improve email marketing campaigns. By targeting emails to people similar to their existing customers, businesses can increase the likelihood of engagement and conversions.
- Social media campaigns: Social media platforms like Facebook and LinkedIn offer lookalike audience targeting as an advertising option. By creating a lookalike audience, businesses can target their ads to people similar to their existing customers on these platforms.
- Market research: Lookalike audience targeting can also be used for market research. By identifying commonalities among their existing customers and creating a lookalike audience, businesses can gain insights into the characteristics and behaviours of their target audience.
Netflix, the streaming giant uses lookalike audience targeting to reach potential subscribers similar to their existing customers and likely to be interested in their original programming.
What is the difference between a lookalike audience and a custom audience?
A lookalike audience is created based on the characteristics of an existing audience. In contrast, a custom audience is made up of people who have already engaged with a brand, such as through its website or social media pages.
How is a lookalike audience created?
A lookalike audience is built using data analysis techniques to identify commonalities among an existing audience, such as demographics and interests. This information is then used to create a new audience with similar characteristics.
What are the benefits of using lookalike audience targeting?
Lookalike audience targeting can help businesses reach new potential customers likely to be interested in their products or services and share similar characteristics with their existing customers. This can increase the efficiency and effectiveness of their advertising campaigns.
What platforms offer lookalike audience targeting?
Many advertising platforms, such as Facebook Ads Manager and LinkedIn Ads, offer lookalike audience targeting as an advertising option.
How can businesses use lookalike audience targeting?
Companies can use lookalike audience targeting to improve the efficiency and effectiveness of their advertising campaigns, personalise their content, and gain insights into their target audience.
How can a business measure the effectiveness of its lookalike audience targeting?
Businesses can measure the effectiveness of their lookalike audience targeting by tracking key performance indicators, such as click-through rates, conversion rates, and return on ad spend. They can also use A/B testing to compare the performance of their lookalike audience targeting against other advertising strategies.