Case Study: Facebook Lookalike Audiences Bring High Conversion Rates
March 19, 2018
Facebook Lookalike Audiences are – theoretically – the best way to target ads to a new audience. True, except this case study shows it’s no theory. This tactics works. Here’s how they did it.
Facebook Lookalike Audiences may be the most sensible way to target ads ever devised.
Think about it. With this tactic, you take a group of people who bought your product or engaged with your business – people who’ve already converted – and you create an audience that strongly resembles them. They have similar interests, hobbies, shopping patterns, and demographics.
This audience has a disposition and situation in life that makes them more likely to buy from you. It’s impressive that we can target consumer audiences in this way nowadays.
Not enough businesses take advantage of this tactic. Of course the one caveat is that you must have an audience to mirror, so this is not a tactic for a new business with no customers or lead contacts. Also, the bigger the list the better. Technically, you can create a Lookalike Audience with just a 100 people on the source list, but we’ve found you get better results with a larger list.
For example, a Marketing 360® client who sells sports and health supplements had a customer list (emails and names) of 19,000 people. We added some age and location demographics, then let Facebook create a lookalike audience.
With 19,000 people on the source list, Facebook can create an accurate profile to base the new target audience on.
The ad we created is fairly straightforward:
For a Facebook campaign, a click-through rate of 1.49% is pretty good (keep in mind that people are not on Facebook with express intent of making a purchase). A conversion-rate of 21.27% from that traffic is absolutely outstanding. It shows the Lookalike audience is targeting the right people.
This campaign (so far) spent $575 and generated $3890 in revenue. Not bad return on a campaign that took minimal effort to create.
If you have a large customer list, try this tactic. It’s basically saying: Hey Facebook, this what our paying customers are like. Go out and find more of the same type of people.
And it will.
Learn more about how to plan and set up a Facebook Lookalike Audience.
*Results are based on past client performance. Individual account performance may vary. Results are not guaranteed.
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