What are Lookalike Audiences?
Facebook creates Lookalike Audiences by using your own first-party data. It uses the customer information you have provided via a list upload, as well as customers’ data from their Facebook (interests, likes, groups, etc.), to find similar customers to target with your ad content. Facebook identifies the common qualities shared between your customers and other Facebook users to create more qualified target audience(s).
How do they work?
Facebook is widely known as one of the top channels for successfully targeting auto consumers. It allows dealerships to create Lookalike Audiences using a customer file from your DMS, or of specific segment(s). Facebook then uses these target lists from your DMS to find consumers that are similar to the customer types you are trying to capture. This helps attract more qualified leads because the consumers share many characteristics with your existing customers.
Lookalike Audiences automatically update every 3-7 days. If the source audience changes, your Lookalike Audience changes too. This means every time you add new prospects to a list segmentation, the Custom Audience will reflect this new profile to reach similar users that may be interested in your dealership. This process works by connecting your Facebook Ad Account to software that builds custom audiences via your DMS data (like GSM’s Digital Marketing software!)
Benefits of Lookalike Audience targeting
- Reach new, more qualified audiences.
- Save ad spend by targeting audiences with the highest likelihood of being interested in your dealership.
- Because Lookalike Audiences are based off of your existing customers, there’s a higher likelihood of their interest in your dealership or its offerings.
- You can create up to 500 Lookalike Audiences from a single source audience.
- Facebook enables advertisers to use multiple Lookalike Audiences at the same time for one ad set. The ad set targets ads to individuals who are in any of the selected Lookalike Audiences.
- You can choose the size of your Lookalike Audience, however, the smaller the audience, the more closely it matches your source audience. While a larger audience increases your potential reach, it reduces the level of similarity between your source audience and your Lookalike Audience. If your goal is to grow brand awareness or website traffic, consider a larger audience. If you’re trying to grow conversions/gain new customers, consider a smaller audience size. A source audience must be at least 100 customers.
Strategic segmentation for Facebook Lookalike Audiences– Choosing your “source” audience
Try segmenting your customers, and thus your potential audience, by:
- Service behavior: frequents/loyalists, prospects, defectors, lost customers
- Services or parts purchasers
- Links clicked (on your website, in emails)
- Opened emails
- Low engagement leads
- Lifecycle stage
- Lead source (website, form submission, phone call, etc.)
- Lease expirations
- Declined Services
- Locals (your city or Primary Marketing Area)
Facebook’s targeting enables advertisers to reach qualified car buyer audiences 2.7x better than the national average1. Using Facebook’s sophisticated Lookalike Audience targeting technology, your dealership can broaden its reach, grow brand awareness, and add more VINS to your DMS.
1Facebook Business Insights: https://www.facebook.com/business/news/insights/fuel-your-media-strategy-reaching-auto-buyers-online