You've learned about the three different types of audiences that you can create in Facebook Ads Manager and how each one is going to help your business find new customers, retain loyal customers and grow your sales. In this video, we'll have a closer look at core audiences and we'll create a core audience for our flower shop in Amsterdam, Calla&Ivy. We'll create our core audience at the Ad Set level in Ads Manager. Which you get to after you've created a new campaign and selected your campaign objectives. In the audience section here, we can choose to either create a new audience or use a saved one. We'll create a new one. Here is where Facebook will ask you if you want to create a custom audience or look alike audience. But we'll get to those in another video. For now we'll focus on creating a core audience. Ideally, you've already done the work around knowing who your core audience is which will make setting this up all the easier and more focused. Back in course 1 we created a target audience for Calla&Ivy which we can now have in front of us as we go through the options. The first step in creating a core audience is to define the location of your audience. Ads Manager gives us four options for this: people living in or recently in this location, people living in this location, people recently in this location or people traveling in this location. Targeting one of these may be useful for a specific business objective but we'll leave the default selected which gives us the most reach. Calla&Ivy is located in Amsterdam. We'll type that into the box where we will see options appear in a drop down. We could narrow our target down to the neighborhood Calla&Ivy does business in but for now we'll leave just the city, Amsterdam. We can use the slider to get more concentrated in our mileage or we can just select Current city only. We can follow along with the audience size dial to see how our choices are affecting our target audience size. Remember that the more targeted and specific the audience, the better. Because they'll be more aligned with your marketing efforts. Next, we'll set the age. Because of the work we did before, we know that our target audience is between 25 and 55. We also know that we want to target all genders so we can leave the default as is. As you can see, we've narrowed down our audience a bit more. But now let's take advantage of Facebook's detailed targeting section. Which is where we'll add more information about our audiences, demographics, interests and behaviors. We can choose Browse to look through the options that Facebook shows us or we can simply start typing. Since Calla&Ivy is a flower shop, let's type in flowers. It will auto-suggest selections for us. We'll also show you the size of the audience who are interested in flowers so you can see how broad or narrow that audience is. For cut flowers we can see that the potential audience is over a million people and includes both Facebook and Instagram users but before applying our demographic targeting. Let's add in Flower bouquet and Floral design as well. We would choose the Floral design that's under Interests instead of Field of study. You can see on the audience size dial that we've narrowed our target audience now to 11,000 people. You've a few more pieces of specific information on our target audience template. Let's get into the browse feature to select some of these options. From our template we know that our target audience have at least an undergraduate degree. Let's add in College grad, Master's degree and Doctorate degree. We see now though that our target audience has expanded back to 250,000 people. This means that Facebook is including anyone who has an interest in flowers or who meets the education level criteria. What if we want to target people who have an interest in flowers who then also holds degrees? We wouldn't include the criteria in the main box but we would go below into Narrow Audience. That will give us the option to include targeting that matches or overlaps. When we add degree holders who also have an interest in flowers our target becomes much more narrow. You can also use this tool to exclude certain demographics as well. Since we've found our flower categories under interests, let's browse through the category to see what else might be applicable. Hobbies and interests is probably where we'll find more targeting options. Home and garden looks promising. Let's add gardening to our audience criteria as well. In our target audience template, we also specified that our audience probably shops online. Now let's include this as well. But instead of including this in our main criteria which will give us a lot more people, let's choose Narrow Further and include it there. Our audience size is now at 61,000 which is the number of people who fit our criteria on Facebook and Instagram and who have the potential to see our ad. But our advertising wouldn't necessarily go to all 61,000 users. We see that our ad will depend on our campaign objective, the budget we set and the ad placement options we choose. Still knowing the potential size of an audience helps us in understanding the impact of our marketing efforts. Again, you don't want to put your ad in front of a large number of people who may not be interested in Calla&Ivy as that will be a waste of money and effort like finding a needle in a haystack. But targeting an audience of 61,000 people who we already know live in a city Calla&Ivy serves shop online, which is how Calla&Ivy does business and already have an interest in what Calla&Ivy does, is going to be an excellent use of time and money. You can also turn on Detailed Targeting Expansion which is available in all Campaign Objectives except for brand awareness and reach. This signals to Facebook that we would like them to help us with our reach. Now expand the audience to include people who might be interested in the ad, but that the audience might not have captured. Next, we can set criteria under Connections which will allow us to include or exclude people who have some kind of connection to us. If our goal is to expand our audience, we wouldn't want to include people who already like our page. Instead, we might choose exclude people who like your page to find new followers. We may also choose friends of people who like your page since not only will they be part of our audience but they may be more inclined to fuller engage because someone they know already likes the Calla&Ivy business page. Once we feel satisfied with our audience, we can save it and give it a name. You can always come back and edit it later if we want to narrow or broaden specific categories. Ads Manager will put this into saved audiences for us. To return to it in the future on other campaigns as well or to use it to create lookalike audiences. In the next video, we'll have a closer look at the Facebook pixel which powers some of the data sources you can use to build custom and lookalike audiences.