Is yours one of the three million businesses that advertise on Facebook? The social media giant has a lot of ad power, not just because of its expansive reach, but because Facebook gives marketers the power to customize ads.
One of the most effective advertising tools Facebook has is its custom audiences. Marketers can create tailored audiences based on data, website activity, or app activity.
Types of Custom Audiences
There are three types of custom audiences that you can create:
- Customer File
The most common way to create a custom audience is to utilize your customer files. You'll upload customer data, including names, phone numbers, email addresses, and Facebook user IDs to build a tailored Facebook audience.
- Website Custom Audiences
By installing a Facebook Pixel on your website, you can track website visitors and advertise to this custom audience.
- App Activity Custom Audience
This audience is based on actions taken by your app users, such as in-app purchases or pages visited.
How to Use Custom Audiences Effectively
To get the most out of your custom audience, use these tips:
- Segment your lists
Once you've created a custom audience, you should segment them into different groups to maximize relevancy and minimize costs. For instance, you could create a segment of VIP customers that buy from you frequently, or a group of lost customers whose purchasing behavior has slowed down.
Once you've segmented audiences, you can create specific ads that speak to each group.
- Create lookalike audiences.
Facebook can help you find customers that look similar to those you already have. It's a great way to expand your reach. Just upload your customer list and use the Lookalike Audiences to find new customers that resemble existing ones.
- Upsell to existing customers.
Selling to existing customers is always easier than trying to sell to new ones, so make sure you devote some of your ad dollars to customer retention. Create ads that woo your current customers with discounts or priority access to new products.
- Learn from each campaign.
As you use custom audiences, you'll watch analytics to see how your ads perform. Start with a small budget and work your way up as you learn the platform and understand how your audience responds. Let each campaign be a learning experience.
Using Facebook to advertise can be a profitable endeavor, but by utilizing custom audiences you're more likely to reach interested customers and get the most out of your budget.