Now that you understand the importance of having a target audience or two, and that you can use many targeting options to get hyper-focused on the people that you want to reach with your advertising, let's look at the three different types of audiences that you can create in Facebook Ads Manager, core audiences, custom audiences, and lookalike audiences. Each audience type can fulfill your advertising objectives in different ways so you can utilize the right audience for each campaign you run. We'll go into detail on how to create each one in upcoming videos, but let's go through an overview of the three types here. You will create and define audiences in Ads Manager at the ad set level. What you can assign different audiences to each campaign, you count for the segment audiences per ad, which means whatever audience you choose will apply to all ads in your ads set. The first type of audience you can create are core audiences, which are audiences you create manually by choosing all the characteristics of the people that you want to reach with your advertising, because you believe that will be the most interested and the most likely to act. Here's a quick overview of how to set up a core audience in Ads Manager. We'll do this in more detail in a later video. The audience screen will default to create new audience and you can create your core audience here. First, pick the location where you want to advertise. You can target whole countries, cities, or even specific zip codes. Next, set the age of your audience. If you know that your business caters to millennials, for example, set the age to just that generation, set the gender target off your audience, either men, women, or all. Only set the language if you're targeting non native speakers in your location. Otherwise, leave it blank. The dial in the audience size section, will monitor your audience size. It basically shows you how many people on the Facebook platform fall into the audience you've specified. Having an audience size of a few million may not help you as much as having a very targeted audience. The detailed targeting section is whether you'll be able to drill down into specific demographics, such as education level and occupation, interests such as hobbies and pastimes, and behaviors such as device usage. You can browse a curated list from Facebook or start typing in keywords that you've predetermined for your target audience. Finally, under connections, you can choose to include or exclude people who interact with your page, app or events. In other words, you can exclude people who already follow you to find new audience members, and with that your core audience is set. Use this audience to find the people who should know about your products or services, and either start them on the customer journey or raise their awareness of your brand. The second type of audience is a custom audience, which allows you to target people who have already interacted with your business in some way and who you want to nurture along their customer journey. For example, a custom audience could target long-time customers or people have expressed interest by visiting your app or website. This targeting of customers or potential customers who've had some touch points with your business already is called re-targeting. Let's have a first look at how you can create a custom audience in Ads Manager. In the audience section, at the onset level, we click on Create New under Custom Audiences. Now we can choose from two different kinds of data sources to build our audience, our own data, or data from Facebook sources. Our own data sources allow us to target people who visited or performed certain actions on our website or in our mobile app. This information is tracked through the Facebook pixel. You can also build a custom audience by uploading a list of online or offline customers. With Facebook data sources we can build a custom audience targeting those who watched a video we posted, filled out a lead form, visited our Instagram profile or Facebook business page, or interacted with an event we have created. You can then pair your custom audience with criteria such as location, age, gender, in other demographics, interests, and behaviors to achieve an even more targeted audience. The third audience type you can create an Ads Manager is a look-alike audience, which is an audience that is built off an existing custom audience, and looks like your current customers in terms of demographic data, interests, and behaviors. The thinking here is that because your current customers are interested in your business, people like them will probably be interested too. First, we'll start with a source audience, which will be a custom audience like we just explored. Use data from your website or app, upload an e-mail list, or use the Facebook data sources we've seen earlier to create the source audience. Next, set the location you want to target. For example, you could target similar audiences in different regions. Using the information you provide, Facebook will then find and target people with similar characteristics. Facebook will also allow you to select how closely you want the audience to look like your Source audience, from very similar to less similar. The broader you go, the bigger the audience will be. You can also create multiple lookalike audiences with different similarity sizes and use them for the same or different access. This was a first overview of the three audience types you can create in Ads Manager, core audiences, custom audiences, and lookalike audiences. My carefully specifying the criteria of your ideal customers and using the information that you've collected on your loyal customers, you have a better shot at finding new customers. In other words, what you get out of Ads Manager audiences is only as good as what you put in. In the next video, we'll take a deep dive into creating core audiences in Ads Manager.