If you have a set of core customers who love your product and brand, and the people who have the same interests and behaviors of those core customers would probably also be interested in your product and brand and have the potential to become loyal customers. This is the basic idea behind lookalike audiences. In this video, you will learn how to set them up in Ads Manager and use them to reach your business objectives. In order to create a lookalike audience, you have to have a source audience. This could be your Facebook page followers one of the custom audiences you created. Facebook will then take the characteristics from the people on that list, graphics interests and behaviors, and find people among its uses with those same or similar characteristics and create an anti-linear audience with these people. Let's create a few lookalike audiences for Calla and Ivy to illustrate the process in Ads Manager. We'll once again go back to the Ad Set level in Ads Manager, under create New Audience, we'll select Create New and lookalike audience. First, we need source data. If you click into the box, a drop down will appear, giving you two options, value-based sources or other sources. Value-based sources will be lists that contain information on customer spending or how valuable a customer is to your business. We can either upload a list with customer value attached like we talked about in the last lesson, or the Facebook pixel can track conversions and compile value points for your customers. The idea here is that you create a lookalike audience based off the dollars spent. We're going to use the other sources selection for now, which is where the custom audiences recreated live. We'll create a lookalike audience based off of the website visitor or audience we created, which tracked all visitors to our site from the past month. It is worth noting that source audiences you use should at least have a 100 people, but ideally keep at least 1000 people in your source audience. Now it asks us about an audience location. We kept our core audience just to the city of Amsterdam that maybe we want to expand this. Since Calla and Ivy business offerings are fresh cut flower bouquets, it wouldn't necessarily make sense to target the world. But Calla and Ivy have some great partnerships with shipping companies who are able to ship fresh flowers overnight, so let's select all of Europe. Now, it will ask us about the audience size and give us some options and how we want to approach our lookalike audience here. First, we're not confined to one audience. We can create multiple lookalike audiences with varying degrees of similarity among them. Let's start with one, which shows us a potential audiences size of 3.9 million people across all of Europe. It defaults to one percent of people in Europe that are the most aligned to the characteristics of the source audience. We can move this slider all the way up to 10 percent of the European population, which still has some similarity to your source audience, but not as tight as one percent. Let's create two lookalike audiences. A second point now appears on the scale, and we can adjust them as we'd like. We can keep one audience very similar to our source audience and a second that's a little bit broader. This will give us the ability to see which one will give us the most return. Once we're satisfied with this, we can click Create Audience. Let's create another lookalike audience based off the customer audience we created we're interested in Emra video tutorials on how to make flower bouquets. Imra decided that she's going to hold her six-week flower arranging class online, which means it's now open to anyone in the world, not just those in Amsterdam. Let's go back to our Ads and Audience Manager and click on Create New Audience and Lookalike Audience. We'll set the source data and choose the Calla and Ivy videos audience we need, which collected an audience of those who had shown interest in Imra's flower arranging videos. Next, it asks about location. Should we target the entire world? Anyone could take the course now that it's online, but let's think about how to narrow it down. Through the Insights Dashboard on Facebook and from the Analytics in the website, we can figure out from which countries our top traffic is coming from. Instance, we already have people visiting the site from those countries, let's use them. Since our source audience was pretty small, that's broaden our audience size a bit, so our lookalike audience isn't so exact to be original. We'll bring it out to 7 percent. Now, we'll create our audience and we can use it in a campaign advertising the online course. Once Imra holds records, she can then create a new custom audience of its attendees and to the process all over again. It may take up to 24 hours for your lookalike audience to be created. Once you create it, you can't go back and add it the audience size, you would have to create a new one. And just as long as you're actively using your lookalike audience in a campaign, Facebook will keep it updated for you. Once you have your lookalike audience to work with, you can apply location, demographic, interests, and behavior criteria to further target your audience. Imra might, for example, narrow down her lookalike audience with language targeting to make sure her ads and online courses are understood by her audience. You're now familiar with the three types of audiences and how to create them in Facebook Ads Manager, as well as what the Facebook pixel is and how it works. However, you've still only just begun to discover how you can more precisely target audiences and use them to your advantage in advertising. For now, the biggest takeaway is simply being aware of the advantage targeting specific audiences can give you as you reach more customers and grow your business.
