In this guide, we’ll teach you how to create customer lookalike audiences automatically to target profitable prospects on Facebook and increase your sales.
What are Lookalike Audiences?
A Lookalike Audience is an audience of people who are similar to a database of people that you provide to Facebook.
What is a Customer Lookalike audience?
A Customer Lookalike Audience is an audience Facebook creates for you, based on a database you provide of your best customers. Facebook will find similarities between people who bought your products then, it will match this data with its giant database, to create a wider audience of people similar to your customers. That new audience is a Lookalike Audience.
Or how Facebook Defines it:
A Lookalike Audience is a way to reach new people who are likely to be interested in your business because they’re similar to your best existing customers.Facebook.com/Business
What Data is Needed to Create Customer Lookalike Audiences?
To provide Facebook with the necessary database to create the Customer Lookalike Audiences, There are two possible resources:
- Pixel traffic purchase data.
- Product sales data (From Shopify).
We recommend using sales data from your e-commerce store for Customer Lookalike Audiences (purchasing customers) since Facebook only keeps the pixel data available for a limited number of days.
Why Should You Use Customer Lookalike Audiences
Having a lot of traffic to your website is cool, it really is. But having a lot of traffic that doesn’t convert is a horrible way to burn your money.
Think of it this way: your Ads will only show up to people who have the same buying behavior as your customers. You’re selling camera gear? Cool! Your Ads will only show up to folks who previously bought camera-related gadgets, and are overall interested in photography.
So instead of showing your ads to a broad audience of people who might not tick all the boxes of your customer persona, on Facebook, the algorithm only shows your ads to a specific audience of people who are very similar to your customers.
This makes them more likely to become your customers just by advertising to the right people.
Why should you use Facebook Customer Lookalike Audiences?
By only showing your Ads to Customer Lookalike Audiences, you are:
- Increasing your conversion rate
- Decreasing your cost per purchase
- Making more money!
If 80% of your profit came from 20% of your audience, imagine having an entire audience of Customer Lookalike Audiences and spending way less than 20% of your time working on it. Well with Scalify you can do just that!
Before Creating a Customer Lookalike Audience
Note: To create a lookalike audience, you must have a source audience of at least 100 people, that Facebook can use to find prospects similar to your source audience.
The bigger your source audience is, the better is the lookalike audience you’ll create.
However, having 1000 people on your source audience can usually drive great results.
To follow along with this step-by-step guide, start by having the Scalify app open on another tab, click on Scale from the sidebar.
Or click on the button below 👇️
1. Generate Customer Lookalike Audiences
Start by clicking on Store Customers from the sidebar.
1. Choose a Product (optional)
Select one or multiple products to collect audience data from or leave the default option to create lookalikes based on customers who bought any products.
2. Refine by Lifetime Value (LTV) (Optional)
To increase the quality of your customer lookalike audience, you can choose to create your lookalikes based on a source audience with a minimum lifetime value of your choice.
Scalify will automatically provide you with your customers’ average lifetime value, then it’s up to you to refine your source audience by setting the minimum LTV.
3. Lookalike Audience Settings
- Select the countries you want to target with your lookalike audiences
- Choose the number of lookalike audiences and their demographic percentage
- Customize demographic percentage
- Optional: Create a separate lookalike audience for each country
- Optional: Add a prefix to the audience name for better organization
Once you’re done setting up your lookalike audiences, click Next.
2. Set up a Campaign (Optional)
You can choose to carry on the creation of your customer lookalike audiences or you can launch a new campaign for them.
To launch a new campaign for your lookalike audiences, please follow the steps below:
Setup Customer Lookalike Audiences Campaign
- Select your campaign’s objective: Conversions, Traffic, Post Engagement, Video Views, Reach, or Brand Awareness
- On the campaign settings section, type your campaign a name and optionally, enable Campaign Budget Optimization using the toggle
- Choose a daily or lifetime budget for your campaign and enter the amount you’d like to spend
- If you’d like to run Special Ad Categories campaigns, make sure to enable it using this toggle.
Note: Your account must be verified to run Special Ad Categories campaigns.
Tip: To use the same campaign settings in the future, click on Templates and Save the current setup as a template.
Click Next when you’re done.
Set Ad Set Settings
To set up your ad sets settings follow the steps below:
The General tab is where you set the Facebook Pixel, conversion event, schedule, and budget.
Note: The set of settings you’ll see in the General tab depends on if you enable Campaign Budget Optimization.
- Choose the Facebook Pixel that you’d like to track and optimize with from the drop-down. You can also create a new one by clicking on New Facebook Pixel
- Choose a conversion event to optimize for using the drop-down. You can also create a new custom conversion that is specific to your business by clicking on New Custom Conversion.
- Set the schedule you’d like your ads to run on by enabling the Start Date toggle, then enter the time and date you want your campaign to start. By leaving the toggle turned off, your campaign will run immediately
- Set when the campaign ends by enabling the End Date toggle, then enter the time and date you want your campaign to stop delivering. By leaving the toggle turned off, your campaign will continue running until you disable it manually
Note: Your campaign will launch at the start date of your ad account’s time zone.
Now, if you enabled Campaign Budget Optimization in the previous step, you can continue to the next step.
If you didn’t, you’ll get a Budget for each ad set widget, where you can set your ad set’s daily or lifetime budget.
Note: The same steps apply if you chose to create new ad sets in an existing ad campaign. Your new ad sets will follow the budget settings of the campaign you chose.
Click Next when you’re done.
The locations tab is where you can specify the geolocations of the lookalike audiences you want to target.
- In the Include section, start by selecting from the drop-down the living situation of your prospects
- In the search bar type the name of the locations you want to target or browse the suggestions
- Use the Exclude bar to eliminate people living in certain locations from viewing your ads
- Use the Languages section to type the name of the languages your prospects speak or browse the suggestions.
Note: By leaving the languages section on default, you’ll be targeting people who speak all languages.
To target a new set of locations, click on Add Variation. You can add as many variations as you want.
Once you’re done adding all variations you want to target, click Next.
On the Age and Gender tab, you’ll set the age groups and genders you want to target.
- Use the From drop-down to select the youngest age you want your prospects to be
- Use the To drop-down to select the oldest age you want your prospects to be
- If you want to split test your prospects by age groups, make sure to select the age range in years using this drop-down. If you don’t want to split test your audience by age, you can leave this on default
- In the Genders drop-down, you can select to target only males, only females, both, or split to test your audiences by gender
- Click on the Generate button to create unique variations of the age and gender options you chose.
Note: If there’s a variation you don’t want to target, you can click on the X on the corner of the variation you want to eliminate.
Click on Next to proceed to the placements tab.
On the Placements tab, select the placements you want your ads to be shown on.
- To select placements, un-tick the default Automatic placement box
- Tick the boxes of placements you want your ads to be shown on
- You can choose to target all devices, desktop only, or mobile-only from this drop-down.
- To show your ads only when devices are connected to WI-FI, tick this box.
- You can choose to target All Mobile Devices, or select Android devices only, or IOS devices only from the drop-down.
To add another placements’ variation, click on Add Placement Variation.
Click on Next to continue.
The Optimization tab is where you set your ad sets’ optimization and delivery settings. These depend on the campaign objective you selected in the beginning.
- Choose Optimization For Ad Delivery from the drop-down
- If you chose Conversions, select the Conversion window you want your ads to run on. Skip this step if you chose another option
- Optionally, you can set cost control to not exceed your desired maximum cost per acquisition
- Choose when you’ll get charged from the drop-down
- Pick your delivery type
Click Next when you’re done.
4. Create Your Ads
The Ad Creatives tab is where you can:
- Create new ad creatives from scratch
- Choose ad creatives from your offer
- Select page posts from your Facebook pages
- Use ads from previous ad campaigns
- Search Post ID or URL
1. Create new ad creatives from scratch
1. Facebook page
In the Pages tab, select the Facebook page you want to create your ads with. You can select multiple ones to test which Facebook page performs better
2. Ad copy
Then, in the Copy tab, click on the + button to add multiple text variations to split test. You can save them as a template to reuse later, by clicking on Templates and Save current setup as a template.
Now, in the Media tab, you can select:
- All Media tab to use images and videos from offers and previous ads.
- Current Offer tab to use creatives from the Offer you launched your campaign with.
- Upload tab to import images and videos from your laptop.
Next, on to the URL tab where you can add the URL of the web page you want your ads to redirect to. You can add multiple URLs to split different web pages.
Note: if you launched your campaign with an Offer, its URL will automatically set as the default redirecting URL for your ads. Make sure to edit the display link to your preference.
On the CTA tab, you can add the call to action button you want your ads to display:
- Sign Up
- Shop Now
- Contact Us
- Listen Now
- Watch More
- Book Now
- Apply Now
- Learn More
- Play Game
- Get Offer
- Get Quote
- Get Showtimes
- Visit Instagram Profile
- Send Message
You can also add multiple ones to split test.
The Description tab where you’ll add the headline and description that will appear in your ads. Again, you can add multiple ones to split test.
Finally, on the Create tab, you can preview your ad variations on different placements, and enable the ads you want to use in your campaign.
2. Choose ad creatives from your Offer
- From the left sidebar, click on Offer’s Creatives
- Select the page posts you want to use as ads by enabling them with this toggle
- You can also click on the View on Facebook button to preview the page post before selecting it.
Note: the page posts selected must have a redirecting URL and call to action button.
Finally, once you’re done selecting the page posts you want to use as ads, click on the Next button to proceed to the review tab of your ad creation workflow.
3. Choose page posts from your Facebook pages
- Click on Pages in the left sidebar
- Choose the Facebook page you want to select your creatives from. You can choose one page or multiple ones for split testing
- Select the post you want to use in your ads and switch its toggle on. You can choose one post or multiple ones to split test which one works best.
If you selected multiple Facebook pages, you can still choose one post or multiple ones from each page.
Finally, click Next and continue on to the Review tab.
4. Choose ads from previous ad campaigns
- In the left sidebar, select Ad campaigns
- Click Choose a campaign. Here you can choose the campaign you want to use ads from
- Scalify will sync the ad sets you have in the campaign you chose. Select the ad set of your choice
- You’ll find all the existing posts you have in the ad set you selected. Now, enable the post you want to use in your new ads. You can choose one or multiple posts to split test which one works best.
Finally, once you’re done, click Next and continue to the Review tab.
5. Search Post ID or URL
- Click on Post Id or URL in the sidebar
- Choose Post Id or Post URL
- If you choose Post Id, select the Facebook page your post is from. Right under, enter your post ID and hit Search
- If you choose Post URL, you can proceed to enter your post URL right away and hit Search.
- After clicking the Search button, Scalify then will display your post. Select it by enabling this toggle.
Click Next and continue to the Review tab.
3. Review Your Customer Lookalike Audiences Campaign
The review tab is where you can double-check your campaign details, such as:
- Campaign name, objective, spending limit, and Campaign Budget Optimization status
- Ad set variations, budget settings, calculate their potential reach and make sure that all your variations are exactly what you want them to be before launching
- Ad variations and enable the ones you want to use.
Click Next when you’re done reviewing your task summary.
The launch tab is where you can:
- Choose Your Campaign’s Structure
- Name Your Ad Sets (optional)
- Enable Google Analytics Tagging (optional)
- Enable Created Campaign or Ad Sets (optional)
1. Choose Video Views Lookalike Campaign Structure
Automatically set up your ad campaign structure to be:
All ads inside each ad set variation, to allow Facebook to automatically optimize your ad delivery.
Each ad variation inside a separate ad set, to force Facebook to spend all the ad set’s budget on each ad.
2. Name Ad Sets
- Choose to leave the values on default or change them to include information you care about from the drop-down
- Choose your preferred spacing character.
Now, Scalify will generate your ad sets’ names based on the values you selected.
3. Enable Google Analytics Tagging
Enabling Google Analytics UTM tagging allows you to accurately track your ad campaign’s performance beyond Facebook’s Pixel events and get advanced insights on your prospects’ behavior.
Just enable the UTM tags toggle to tag your ads automatically.
4. Enable Created Campaign or Ad Sets
Now all that’s left is to actually launch the ad campaign.
If you’re ready to enable your campaign or ad sets as soon as they’re created by Scalify, then make sure to tick Enable Created Campaign or Enable Created Ad Sets.
If you’d like to go in and review things one more time before launching then make sure it’s ticked off.
To keep up with your task’s creation status, make sure to go to the Tasks tab from the sidebar.