Facebook Highlights the strength of Lookalike Audience
Facebook insights released a new report about automotive campaigns between Feb 2015 and March 2016.
The report was focused on the automotive sector, but they provided important consideration for any brand looking to market products or service.
Facebook co-operated with Oracle to compare the performance of Facebook Advertising against the leading Publishers.
The study showed that:
Niche auto-buyer websites typically had highly curated audiences and provided a higher percentage of US car buyers—but this was typically at a lower scale than can be found on Facebook. Advertisers were able to reach more US car buyers on Facebook than through most other publishers. In this analysis, Facebook’s audience was above average on the quality index and was particularly strong in delivering auto buyers at scale, ranking in the top 10% of publishers in these studies and first on 25% of the campaigns studied.
Combining quality and scale resulted in the best performance for Facebook compared to the other publishers in the analysis. Facebook was in the top 10% of publishers for the combination of scale and quality, resulting in highly efficient reach for auto advertisers. Facebook was also ranked first in 15% of the campaigns studied when combining quality and scale.
But the more interesting data that Oracle finds that you should use CRM data and Website Converts to build a high-quality audience and then use lookalikes to find more similar people.
from the previous charts, Facebook’s Custom Audiences provided the highest concentration of quality audiences on Facebook, but at a limited scale, while interest-based targeting provided the highest scale but with lower quality. Lookalike Audiences, meanwhile, delivered an optimal balance of the two.
This means by using Lookalikes, Facebook advertisers can target users similar to those on their e-mail lists and who’ve already made a purchase. And logically, the profiles of prospective car buyers will be similar, in terms of related interests, income, living situations, professional affiliations, etc.
So if you are an auto-seller you need to find a way to enrich your CRM to improve your results.