Upgrade Digital Acquisition With Smarter Lookalike Seed Audiences
September 20, 2017
Facebook’s Lookalike tool allows marketers to target an audience similar to an inputted source audience, consisting of CRM lists, pixel based audiences, or users who have taken specific actions with your ads. Facebook will find users that aren’t in the seed audience but are similar based on the thousands of characteristics Facebook tracks about its users. It is one of the most powerful tools marketers have for acquiring new customers, yet many do not use the tool to its full potential because they’re trying to engage prospective Facebook customers as they would any generic web customer.
Facebook Converters are Unique
Most omnichannel marketers employing Lookalikes to acquire new customers understand that using web purchasers as a seed audience is more effective than using their entire CRM list, because the users they hope to reach on Facebook are by definition potential web customers given the platform they will be reached on. However, these same marketers don’t follow the logic of seed audience refinement to its conclusion. Facebook marketers should be targeting lookalikes seeded with only people who have converted from Facebook ads. Targeting Facebook Converter Lookalikes will positively impact return on ad spend within your Facebook attribution window and result in a better understanding of your Facebook referred customer and how to message them.
Improved Direct Response Performance
A fashion accessory brand working with SocialCode tested Facebook Converter Lookalikes against lookalikes seeded with all their web purchasers in the past 30 days. Facebook Converter Lookalikes accomplished a return on ad spend 34% higher than the web purchaser lookalike and a 15% lower cost per conversion.
More Precise Messaging With Value Proposition Segmenting
Imagine you are the CMO of the Fashion Accessory brand that just increased their ROAS by 34% with Facebook Converter Lookalikes. You sell a product with two distinct value propositions: your product makes life more convenient and it does so for less money than competitors. You’ve invested in creative that speaks to these value propositions individually. Knowing that people compelled by the “convenience” creative will be a different subset of users than those compelled by the “inexpensive” creative, you place the “convenience” creative in a separate campaign and target Facebook Converter Lookalikes of that campaign alone. Facebook Converter Lookalikes allow the fashion accessory company to place creative highlighting their product’s convenience in front of users who are most likely to be compelled by that particular proposition. They can even offer discounts in their creative exclusively to the “inexpensive” audience who is most likely to be enticed by price reductions without sacrificing revenue in the acquisition of users who could have been enticed with a convenience value proposition.
Better Audience Insights
Every conversion induced with a Facebook ad has the added benefit of giving the marketer a considerable amount of data about the converting audience. Facebook’s user data is an unparalleled trove of demographic and behavioral information which marketers can tap into by profiling their conversion audiences to better understand everything from their customers’ household income to TV watching habits. Marketers can leverage this data to ensure their creative and messaging fits their audience. The trouble is that a web converter audience is not a monolith. Those converting from price based value propositions will likely have different household incomes, interests, and demographics from those converting through a convenience based value proposition. Understanding these differences is key to crafting effective creative and messaging. Facebook Converter Lookalikes empower advertisers to fully leverage Facebook’s Audience Insights to inform a multi-message strategy.
The Importance of Leveraging SocialCode Technology
There are several reasons why this lookalike upgrade is difficult to obtain without SocialCode technology. Using an API partner like SocialCode can upgrade targeting opportunities and optimization levels to drive stronger results.
Facebook Custom Audiences Limitations
When creating a Facebook Custom Audience, advertisers specify a date range and an action on their website or Facebook ad. Facebook users who have taken that action within that date range fall into the audience regardless of whether or not they’ve been served an ad. When advertisers create Lookalikes from the pixel based Facebook Custom Audiences, they are targeting a Web Converter Lookalike not a Facebook Converter Lookalike.
UTM Tag Parsing
Savvy marketers will tag traffic on their site based on where a user was referred from, allowing them to create CRM lists of purchasers based on advertising channel. Unfortunately, this method is as limited as a last-click-attribution model because it doesn’t identify users who viewed Facebook ads before going to the site directly or through another channel and purchasing. It’s important to include users who are apt to purchase after viewing an ad into the lookalike seed audiences.
Facebook API Access
Facebook only grants access to Facebook Converter Audiences to their API partners. Until Facebook builds access directly into the Business Manager user interface, Facebook Converter Audiences will only be available through API tools like SocialCode Performance.
Sophisticated marketers should recognize the opportunity to enhance what is already the most valuable acquisition tool available by building lookalikes of their Facebook converters.
Your brand shouldn’t stop there, however. In addition to targeting Facebook converters with sophisticated API tools, brands should strive to understand their customers as holistically as possible. SocialCode’s Audience Intelligence product matches brands’ first-party data to third-party and social media platform data (in a privacy-safe way) to provide brands with an enhanced, single view of their “best” customers and prospects across digital media platforms. Clients that integrate their CRM, transactional and other enterprise data with SocialCode’s store of 250mm individuals and 2,000+ attributes are able to unlock unprecedented visibility into their customers and prospects.
Contact us if you’d like to learn how SocialCode can help you refine your strategy.