Understanding Facebook's Lookalike Audiences
Lookalike Audiences are new audiences that you can generate using one of your Custom Audiences as a source.
As the name suggests, the aim of these audiences is to find people who are as similar as possible to your source audience, to help you find new customers more likely to engage with your product or service.
In order to create a Lookalike Audience, you'll need a Custom Audience
Your Custom Audience could be created from CRM data, e.g. a list of your highest value customers imported into Facebook, or a list of users who have visited a particular page on your website, tracked using the Facebook pixel.
Using this custom audience as your source data, you can use the Lookalike Audience Creator to create an audience of new people that have strong (or slightly broader) similarities to your custom audience.
Why should you use Lookalike Audiences?
Lookalike Audiences are perfect for advertising on Facebook, due to the rich amount of personal information people divulge, that you may not have a great overview of - or that would take you a long time to spot and combine using audience insights.
Facebook has this data and can find complex similarities between your Custom Audiences and other users on the site.
With lookalike audiences, you don’t need to bother with any research or analysis to figure out the similarities between your best performing customers, you let Facebook’s algorithm do it for you.
N.B. As long as your custom audience contains at least 100 people from a single country, a lookalike audience can be created.