In this second and last post about the Facebook Pixel, we’re going to talk about lookalike audiences (LAs or LLAs) beyond 1 percent.
We talked about 1 percent LAs in part 1 (if you missed part 1 click here to read it now to catch up).
We’re also going to talk about how the quality of the custom audience matters and how you should look after it, otherwise you’re going to have problems that you don’t want.
We’re also going to talk about how to use these custom audiences for retargeting. Although we’ve talked about retargeting a little bit in part 1, we barely scratched the surface. We’re going to talk about it a bit more now.
What other custom audiences are out there, that are really useful and that you can also use.
And lastly, it’s not just Facebook anymore!
So let’s just jump in.
We’ve already talked about how the January 2018 sales we got on Shopify were mainly the consequence of how we used the pixel.
And you can see in this graph below, how we went from almost zero sales in January to a total of just above $77,900 in sales.
And this is because we are using the pixel to its best capabilities.
We also talked in part one how the purchasing ideal process goes from the Facebook ad, to the users viewing content on your website, then adding the product to their cart, then initiating checkout and finally purchasing the product that you’re offering, and how all these events are tracked by the pixel.
We also talked about custom audiences, how we can also create lookalike audiences (LAs) based on custom audiences and how the minimum size of a custom audience had to be 100 people. Lastly, how we can create the LA based on the total U.S. population that are Facebook members.
If we select 1 percent for the lookalike audience, that will give us 2,200,000 people that we can target. These people are going to have very similar characteristics to the ones that we have in our custom audience.
Would you rather watch the part-2 video than read on?
Larger Lookalike Audiences
As I mentioned above, those lookalike audiences can be bigger than 1 percent. They can be anything between 1 and 10 percent. You have the choice when you create the lookalike audiences to create them at whatever percentage you want.
But there’s a catch.
Before I talk about the catch though, let me show you how a 3 percent lookalike audience can be 6,500,000 people that you can target.
And that makes it really exciting.
But be aware that all those audience sizes that range from 1 to 10 percent are relative to the total Facebook users in the country you choose. In this example, this is based on the U.S. population.
Also, a 1 percent LA of that population is going to have more similar characteristics to the original custom audience that it’s based on, than a 3 percent LA based on the same custom audience and country.
This is because the more people that Facebook is trying to get on a LA, the less strict is going to become in terms of how those characteristics should resemble the ones from the custom audience that it’s originally based on.
So be aware then, that the higher the percentage, the less chances these audiences are going to have to convert.
Custom Audience Quality
We talked about the 4 classic custom audiences in the previous post: view content, add to cart, checkout initiated and purchase.
These audiences are based on the actual website visitor’s activities or events, and that are tracked by the Facebook pixel.
Now you have to be aware that if you put garbage in, you’re going to get garbage out.
This is a very well-known principle in systems.
What this means is that if, for example, you send your family and friends to view content on your website, this “view content 30 days” custom audience is not going to be very good in terms of converting, be that adding to cart, initiating checkout or purchasing.
So when you create your LAs based on this custom audience, you have to be aware that it will be mainly made up of people with similar characteristics to those of your family and friends.
When you use this LA, you’re going to target people that are similar to them, and not people who are likely to view the content because they are interested in the product and in buying.
In order to do retargeting, we need to use these same custom audiences: view content, add to cart and checkout initiated.
You can offer discounts or other incentives to complete their purchase, because these people have not purchased.
To make sure you only get people who haven’t purchased in the custom audiences above, we need to exclude all people from the “purchase X days” custom audience when we use these audiences in our ad sets.
Otherwise you’re going to send messages like “complete your purchase with a 10 percent discount” to people who may have already bought. This will end up confusing them and wasting your retargeting dollars.
We could use the purchase custom audience to offer similar or complementary products to people who have already bought product A.
This is called an upsell.
Other Useful Custom Audiences
There’s other super-useful custom audiences, besides the website custom audiences that I mentioned above, which are based on events that take place on your website, thanks to the Facebook pixel.
There’s also activities that take place on your Facebook page, or your Instagram page, for instance.
These are engagement custom audiences, because they’re based on people who have some engagement with your page, have some engagement with your posts, such as people who have shared a post of yours, who have commented, or who have liked a post of yours.
This type of audience could also include people who have watched a certain percentage of a video that you posted on Facebook or Instagram.
So you can create an audience made of people who have watched 3 seconds of your video. These people are slightly engaged (or maybe not at all), compared to people who have watched 95 percent of the same video, who are much more engaged.
You should treat these audiences accordingly.
It’s not just Facebook anymore
When talking about Facebook ads, most people assume it’s ads on Facebook only.
But Facebook ads can also be displayed on Instagram, Messenger and the Audience Network.
And how does that work?
Facebook ads displayed on Facebook are shown on the main feed, or on the right column of your target audience’s timeline.
When choosing Instagram as the placement, you can display ads on the main feed on Instagram.
Messenger is slightly different because there is no feed in there. What you have is a list of people that you engage with, in conversation through Messenger, and mixed in with those people, you also can display an ad.
And Audience Network is made up of websites and apps that Facebook either owns or has agreements with, where you can also display your ads.
Of course, you can select some or all placements when you place your ads. You just need to be mindful of the platform and their specific media requirements.
This was a very quick overview of custom audiences, lookalike audiences and how the pixel works in 2018.
I hope you enjoyed the two articles.
If you have any questions or comments, just post them below. I’d love to hear how you use all this in your own ad campaigns.
For instructions on how to install the pixel, watch this video by Facebook themselves.
For instructions to install the pixel on Shopify, once the pixel was created, click here.
To learn more about Facebook ads, don’t forget to download my book “How to get clients fast with Facebook Ads, even if you don’t know where to start”, right here on this page.
Hope to see you in my next post!