Good news for Facebook advertisers: customized ad targeting is now even more advanced with the incorporation of ‘lookalike audiences.’
“Facebook’s custom audience algorithm will now pull additional clusters of users for advertisers to target based on similar interests, demographic data or location,” explains ClickZ’s Matt Kapko. “If the new beta feature is effective, brands will be gaining a unique insight and direct connection with Facebook users who are more likely to become customers.”
The new targeting feature allows organizations to import their CRM database to establish ‘lookalike profiles;’ Facebook advertisers no longer have to guess who their target audience is based on demographics and presumed affiliations. In other words, Facebook’s ’lookalike audience’ algorithm automatically identifies individuals who share similarities to an organization’s existing customer base.
Though it is still in beta, ClickZ reports that brands are experiencing initial success using ‘lookalike audiences’ for targeting: “a travel site is reporting a 70 percent reduction in cost per acquisition (CPA) while a shopping site is reporting a 56 percent reduction in CPA.”
Click here to read more in ClickZ.