Next we are going to go through how you create lookalike audiences from these dynamic custom audience lists.
Lookalike audiences looks for commonalities in the people in your seed audience (i.e. your custom audience), and looks for other people on Facebook that 'look like' those people but are also most likely to convert to whatever your chosen objective is. Facebook has millions of data points to look at when searching for commonalities, therefore the match rate can be insanely good. In fact, at Driftrock we swear by lookalike audiences, and find they usually outperform any other audience type.
We always recommend starting with a 1% lookalike of your highest value audience. Gradually, over time, this audience will likely decay, once Facebook has served the ad to all the people that are most likely to convert from your ad. However, once you see signs of decay, as well as rotating your ad creative(link) you should target larger lookalike audiences. So work your way up through 2%, 5%, and 10% even.
Expert Tip: When setting up your targeting in your adset, always remember to exclude the smaller lookalike audiences, so that you aren’t advertising to them again. For example, if you are targeting a 10% lookalike audience, be sure to exclude any smaller lookalike audiences that you are targeting in other adsets.
Facebook supports creating lookalike audiences up to 10%. So what happens when your 10% lookalike audience has been exhausted? Of course, you can start by finding other seed audiences to build lookalikes from (e.g. your page fans). But also, with Driftrock Flow, you can build up to 20% lookalike audiences! This gives you an insane number of potential new customers, and should mean you are never short of potential leads for your campaigns.
Here's how. Open up Driftrock Flow, and click Create a new audience:
On the following screen, then click Target Similar Customers with Facebook Lookalikes. Then click Next.
On the following screen shown below, fill in the details - pick the name of your seed custom audience that you want to build the lookalike from, give your lookalike a name (we tend to reference the size of the lookalike audience in the name), choose your lookalike size (if you want above 10%, then click Set percentage manually), and finally, select the country that you want the lookalike audience to take it's users from.
After a short time, your lookalike audience will be built and will be available for targeting.