Hi there, my name is Elizabeth.
You've just tuned in to our Facebook audiences tutorial, the fourth in a series on expert
marketing tips and tricks for targeting customers.
Once you've launched your campaign and it's been running for a few weeks, it's time
to make data driven decisions to make your ads as effective as possible.
Strategically building your targeting audiences is the next important step in running a successful
Facebook ads campaign.
In this tutorial, we will be exploring the different types of Facebook audiences and
advising you on which are best for your ecommerce store.
We will also explain how and why you might create a lookalike audience, along with other
useful strategies for targeting and retargeting your ads.
These are all key aspects in learning how to direct your ads towards the audience that
is most likely to purchase from your shop.
So, let's get started!
As we begin the tutorial, it's first important to know that there are 3 audience categories:
Custom Audience Lookalike Audience
And Saved Audience, which refers to interests targeting
The Custom Audience category is made up of 4 subtypes:
Customer File Website Traffic
App Activity Engagement
Custom Audiences are used in two ways.
The first is for retargeting purposes.
You're creating an audience comprised of people who added something to their carts,
but didn't convert with the aim of retargeting that audience with another relevant ad.
The second time you would use these custom audiences is to build high relevance Lookalike
audiences.
We will talk about them later in this tutorial.
For now, let's explore the 4 different subtypes of custom audiences at your disposal:
The Customer File subtype of custom audiences allows you to create an audience using your
customer information including their emails and phone numbers.
It simply matches your list with the corresponding Facebook accounts.
There are a few different ways to add users.
You can easily connect your Mailchimp account with Facebook and upload a list of your customers.
Another option is to upload csv or txt files directly to Facebook.
Simply click 'Add customers from your own file' and then press 'Upload File.'
After uploading, name your audience, and press 'Next.'
These audiences are usually used for creating Lookalikes.
Your customer list makes a perfect seed audience for doing so.
You may also want to use this audience to upsell to your existing customers.
You can segment email lists by the products they've bought and then show them the most
relevant ads based on this information.
Next, the Website Traffic audience subtype of Custom Audiences allows you to create segmented
audiences based on your web traffic.
This is a very handy way to effectively identify audiences for retargeting.
There are several options for creating a Website Traffic audience.
You can make the broadest one by choosing 'All website visitors.'
This way, Facebook will gather all of your web traffic to form one audience.
It is best to do this when you don't have a lot of web traffic and segmentation is not
available.
It also provides a broad enough audience for you to create lookalikes from it as well.
Usually I create several Website traffic audiences by default.
These would include: All visitors in the past 7 days,
All visitors in the past 30 days, And all visitors in the last 90 days
I find these to be the best for retargeting.
With 'All visitors in the past 7 days,' you're reaching hot traffic.
'All visitors in the last 90 days' is good for creating lookalikes because it's
broad, but still relevant.
The 'People who visited specific web pages' tab can help you to easily segment your traffic.
This way, you can make targeted remarketing campaigns that are laser sharp by showing
your visitors the most relevant products.
All you need to do is copy the portion of the url which is unique to each product, and
Facebook will create this audience segment.
After choosing the URL you want to make your audience from, you can refine it even more.
You can choose from two options Frequency and Device.
This way you can make very interesting audiences.
By choosing Frequency you can define how many times your potential customer visited a webpage
you chose.
Let's say you've made an audience based on web traffic to a specific pair of sneakers
displayed on your site but you add this additional condition Frequency is greater or equal to
2.
Now, you have made a targeting audience derived of people who are interested in purchasing
the sneakers which also contains people who visited your site two or more times.
You don't want to spend your marketing budget on this audience because they've already
completed this action.
To avoid that, you need to make a more complex audience.
Click the Exclude button on the right side of the screen and select conversion event,
"Purchase."
Now, you've excluded all previous customers and are left with an audience of people who
are very interested in the specific product.
You can retarget those with a discount ad or different variations of the same product.
When you have similar products or supplemental ones, you can create an audience from 'People
who visited specific web pages but not others.'
In doing so, you will be ensuring that you're advertising these products to the right people.
You need to add another condition to your 'People who visited specific page' audience.
Press "And also" and then "Contains" in the newly appeared URL insertion box.
Select "doesn't contain," and insert the URL you want that your audience doesn't
been to.
Keep in mind that all audiences have the same timespan.
You can choose from 1 to 180 days, just remember to tick the 'Include past traffic' box.
This way, you can still create quite a large audience even though you don't have a lot
of daily traffic.
Just keep in mind that people who visited your store 180 days ago and haven't come
back since might not be interested in your product anymore, so it's best not to waste
your money or their Facebook Newsfeed space.
More advanced Website traffic audience types include 'Based on time spent on your website'
and using your Facebook pixel Events
When creating audiences based on the amount of time spent on your website, you have the
option of choosing between 5%, 10% and 25% of your website visitors.
If you get a lot of traffic to your site, you could create 5% of visitors who spent
most time on your website, which allows you to retarget them with very specific messages
that are most relevant to your top users.
If you don't get that much traffic, 25% would be a better choice because the audience
segment is larger, but bear in mind that the targeting is not as specific.
Any of these seed audiences could be amazing for creating lookalikes.
We will talk about these later in this tutorial.
Another type of targeting audience could be derived from your Facebook pixel data.
You can choose any conversion event available on your account and then make an audience
out of everyone who has completed that event.
When creating a Custom Audience based on Website Traffic, for instance, just click the dropdown
menu, which is set to 'All website visitors' by default.
If you scroll down, you can select from the Conversion Events automatically generated
by Facebook.
When you select the event you think is the best for your audience (usually it's Complete
Registration or purchase) and also choose the time span of your audience, you can refine
that audience by some additional criteria.
The most powerful option here is Frequency.
This way you can create an amazing seed audience for retargeting and lookalikes.
Your customers are not equal.
Some of them are impulse buyers, and after they've purchased from you once it's possible
that they won't return back to your site.
To identify repeat customers, you can create an audience of people who have made purchases
and setting the frequency of purchases made to at least 3 times.
These are the real fans of your brand, so it is very important to build an audience
like that in order to make the Lookalike audiences as accurate as possible.
Also you can choose here from several different Frequency variations, like 'is greater than';
'equals' and so on.
Besides Frequency you can also refine your audience by the type of device and operating
system they're using.
This is very important because in doing so, you may discover that iOS users buy much more
than Android users or vice versa.
Important to note that by choosing All Mobile Devices you will also choose tablet users.
For now it is still unavailable to choose tablet users separately.
It is important to add that you can only target custom audiences of 20 or more people.
Facebook has this rule as part of their privacy policy.
Also note that when uploading email lists, the audience created as a result will typically
be smaller than your actual email list because Facebook can't match every single email
with the ones that people use to log into Facebook.
Next, let's talk about App activity.
The App Activity type of custom audience isn't one you're likely to use all that often.
It allows you to create an audience by using data from your app.
App activity audiences are rarely used by first time ecommerce store owners because
it's unlikely new entrepreneurs already have created their own mobile apps, so we
won't go into much depth about them here.
Basically, app activity audiences allow you to take data from your mobile app and create
different segmented audiences from it.
You can target everyone who opened your app, most active users, users by purchase amount,
or users by segment.
The maximum time span for creating these audiences is 180 days.
Finally, it's time to cover the newest variety of Custom Audience, Engagement audience.
From this subtype, there are several different targeting options for you to choose from,
and you can gather various audiences from both Facebook and Instagram using traffic
and engagement data.
Engagement audiences can be broken down into six different types, which include video,
lead form, canvas, Facebook page, Instagram business profile, and event.
All of these are great for retargeting.
Using Engagement audiences, you can make many different retargeting lists based on user
behaviour while interacting with your content.
Let's take a quick look at each one individually.
We'll begin with Video:
There are several different options for creating an audience from video engagement.
Facebook counts video views after 3 seconds, so you can choose the number of views a video
has, or you can go with percentage of video viewed.
To do this simply navigate to one of your videos, and select your prefered options.
Also note that the maximum time span for extracting this data is no longer 180 days.
Now it is 365.
Percentage of video viewed tells you a lot about your audience.
You should definitely try to retarget users who have watched 75% or more of your video
because these individuals are showing significant interest in your product.
Just remember to always exclude your existing customers when retargeting these kinds of
audiences.
There is no need to allocate your Facebook ads budget to existing customers, as email
is a better channel for reaching out to them.
Now, let's go over the Lead form type of engagement audience:
There are three options for creating an audience based on your potential customers' behaviour
on lead forms you've already created.
A Lead Form is used to gather the contact information of your potential clients.
It is generated automatically by Facebook.
In other words, when someone who clicks on a Lead ad, he or she won't have to insert
any relevant information because it is gathered automatically from his or her Facebook profile.
Keep in mind that the maximum time span for drawing on this kind of engagement data is
90 days.
The most useful targeting audience here is 'People who opened but didn't submit the
form' because you can retarget them with different offers.
Don't use the segment 'People who have opened and submitted form' for retargeting
on Facebook.
You already have their emails, so don't waste your money on paid advertising.
Instead, use your email list to send direct messages to those users.
The next category of engagement audiences on our list is Canvas.
Canvas audiences are usually used by larger brands when they're searching for new opportunities
to promote their offers.
Therefore, we don't need to dwell on this audience type for long.
Canvas ads are only available on mobile.
It's basically a full screen ad that loads really quickly after a user clicks on a typical
ad display in their Mobile News Feed.
Let's move on to Facebook page engagement.
It is the main audience category for you to play around with when choosing Engagement-based
targeting.
There are a bunch of options to choose from, and you can create an audience without any
segmentation just by targeting anyone who has engaged with your store's Facebook page
or posts.
Alternatively, you can go with more specific targeting options like 'People who sent
a message to your Page' or 'People who saved your Page or any post.'
These audiences are great for retargeting purpose, but don't forget to try them on
Lookalike audiences as well.
People who saved your page or messaged have already indicated their interest in your products,
so there is a high possibility that Lookalike audiences will also be very useful here.
The maximum time span for Facebook page engagement is 365 days, but don't get too carried away,
as people who engaged with your page several months ago may not interested with your product
or brand anymore.
Usually going with a 90 day time span is sufficient with this audience.
Also keep in mind that Facebook page engagement audiences are only using data from your Facebook
page and messenger meaning that they don't use any information from your Instagram accounts
or website.
Moving on to Instagram engagement audiences, you will find that they are very similar to
Facebook page audiences, only that they draw upon Instagram account data instead.
The only major difference is that unlike Facebook engagement audiences, you don't have the
'People who clicked any call-to-action button audience' here.
The time span, however, is the same: 365 days.
That said, Instagram data is available only from June 2017, so you can't create an audience
consisting of data from May 31st, 2017 or earlier.
The final subcategory of engagement audiences is events engagement.
This is the latest update from Facebook.
From now on, you can create audiences according to how they've engaged with the event you've
created.
You can choose to merge everybody who marked themselves as 'Going' or 'Interested,'
or you can create separate audiences for those two answers.
The life span for events engagement audiences is the same - 365 days.
You've probably noticed that we've already mentioned the term 'lookalike audiences'
a couple of times throughout this tutorial.
Now let's delve into this important topic in more detail!
The Lookalike audience feature is a very powerful tool that you can use for your ad targeting.
In my opinion, it is the most sophisticated targeting tool available on the Facebook ads
system.
Basically, creating Lookalike audiences allows you to reach people who are most similar to
your seed audience.
This way, you don't need to do as much research every time you want to target a relevant audience
or identify a group of individuals who are most similar to your paying customers.
If you want to create Lookalike audience, just go to your Asset Library and press 'Create
Audience.'
From here, choose 'Lookalike Audience.'
The first step to creating the actual Lookalike audience is choosing the source.
This refers to the list of all eligible custom audiences you've created.
I recommend starting from your existing customer list or Website visitors within the last 90
days, as these seed audiences are the most relevant.
Facebook recently rolled out a new feature about the type of seed audience you can use
for lookalikes.
From now on, you can create a custom audience that is not only based on your customer list,
but also on the monetary value that a given user brings your business.
Click 'Create new' and then choose 'Custom Audience With LTV' to access this feature.
After that, a Custom Audience creation window will pop up.
The window is nearly identical to the Customer Files audience, but this time the customer's
email isn't the only information that's required.
You should also include customer value.
If you want to learn more about it, follow the link posted in the description, below!
There you will find best practices on customer data preparation.
(http://bit.ly/facebookltv)
When creating custom audiences like this one, Facebook can more accurately decide who is
best included in your lookalike because you are telling the Facebook algorithm which kind
of user has already brought you the most value.
After choosing the Custom audience, you must define in which country or countries you want
that audience to be.
You can do so by typing a country's name or selecting one from the dropdown menu.
You can also go a bit broader by instantly choosing an entire continent or opt for one
of Facebook's provided regions.
The next step is choosing the Audience Size.
You can choose from 1% to 10% of your seed audience.
That means that an audience of 1% will be the smallest proportion possible, but it will
only be made up of people that are closest in similarity to your Custom audience.
With 10% you will reach more people, but they will not match the parameters you set in your
custom audience targeting as closely.
Always start with narrower audiences of 1% or 2%.
By clicking 'Show Advanced Options,' an additional menu will appear from which you
can create up to 6 lookalike audiences at once.
It's a very handy tool when you want to test out seed audiences quickly.
When targeting multiple lookalike audiences and running retargeting campaigns, it is very
important to make sure that you are not competing with yourself in Facebook auctions.
So far we've covered a bunch of different aspects of correctly targeting lookalike audiences,
but one additional thing to consider is excluding audiences:
To ensure this doesn't happen, you need to exclude your audiences one from another.
You don't need to make them entirely mutually exclusive, but there are some rules you should
follow: The smaller the percentage of your lookalike
audience, the closer in similarity this group will be to your original target audience.
Therefore, always exclude the narrower audience from the larger one.
For example, if you're aiming for a lookalike audience based on 1% of your customers in
US and 3% of customers match the criteria, you'll want to exclude 1% that are most
similar to your target audience from the 3% that match the criteria because that 1% will
otherwise be automatically included as part of the 3%.
In order to do this, simply hit the 'Exclude' button under the Custom Audience section when
creating an ad set.
For all lookalike audiences, you must exclude every retargeting list you are already using.
I would also suggest that you exclude 'All visitors' as well as 'All Customers audiences,'
to ensure that you are only reaching new people when targeting with a Lookalike audience.
If you're concerned that you are not excluding audiences as necessary, note that you can
always check Audience Overlap in your Ads manager.
Open 'Asset Library,' and check the boxes located beside the audiences you want to test.
Press 'Action' in the menu located above, and then select 'Show Audience Overlap.'
And that just about covers everything you need to know about targeting and creating
the right audiences for your products and your brand.
So let's recap: There are 3 audience types available on Facebook:
Custom, Lookalike, and Saved The perfect custom audiences to use when creating
a Lookalike Audience are simply your existing customers list and your website traffic from
up to the last 90 days; All 'Engagement' type audiences are best
for retargeting.
'Lookalike audience' is the most powerful tool to use for your targeting;
Always start with narrow Lookalike audiences of between 1 and 2% similarity to your intended
audience Finally, remember that when targeting multiple
audiences and running retargeting campaigns, you need to exclude your audiences one from
another;
Follow these guidelines and don't be afraid of experimenting with the different audience
types to see which ones work best for your business.
Now that you've completed this tutorial, you've taken one more step towards achieving
success as an ecommerce marketing.
If you liked this video or have any questions, let us know in the comments section, below!
You can also subscribe to stay up to date not only on best practices in Facebook advertising
but all things ecommerce, too.
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