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Facebook Advertising Case Study – Custom Audiences

Written by: Cheryl Morris, VP Marketing

Leveraging Facebook as a channel to remarket to consumers has been increasingly at the forefront of advertisers’ minds in recent weeks, with Facebook announcing Facebook Exchange and Custom Audiences. Published by TechCrunch and Inside Facebook, Nanigans compiled a case study to illustrate how compelling Custom Audiences are in delivering positive ROI for advertisers.

What are Custom Audiences and how are they created?

A Facebook targeting tool, Custom Audiences help marketers reach their current customers on Facebook. Custom Audiences enable marketers to define and deploy Facebook Ads and Sponsored Stories to a specific set of users they have already established a relationship with outside of Facebook.

Custom Audiences are created by matching a marketer’s set of customer email addresses, phone numbers or user IDs to Facebook accounts that include that same information. With Custom Audiences created, marketers can deliver ads to their current customers on Facebook and even further target a particular sub-segment by demographics, interests and actions. Marketers can also elect to exclude Custom Audiences from their targeting, such as in instances where they want to reach non-customers.

What type of results is Nanigans seeing with Custom Audiences?

Nanigans recently compiled a Facebook advertising case study from the gaming industry in which Custom Audiences were leveraged. The case study aimed to understand how the performance of ads deployed with Custom Audience targeting compares to the performance of ads deployed with standard Facebook interest targeting.

By measuring in-game purchases made by people who were driven to the game through either targeting method, Nanigans found that Custom Audiences delivered 5.5 times greater ROI than standard interest targeting. In other words, for the same amount of Facebook ad spend invested, people targeted through Custom Audiences generated 5 times more revenue than people targeted through standard interest targeting.

Note: ROI = (Revenue – Cost) ÷ Cost. In this case study, Cost refers to Facebook ad spend and Revenue refers to in-game purchases made within the first 24-hours after ads were clicked.

When should I leverage Custom Audiences?

If you have business goals that include reaching your current customer base on Facebook, Custom Audiences should be kept top of mind. Ultimately, defining Custom Audiences provides marketers the opportunity to reach a specific set of current customers on Facebook with an incredibly relevant message. For example, a financial institution could create Custom Audiences for both high-income and low-income customers and tailor messaging accordingly to each.

Nanigans has delivered campaigns leveraging Custom Audience targeting in a variety of sectors, such as ecommerce, gaming, travel and financial services. Example use cases include reaching on Facebook:

Customers who have not yet Liked your Facebook Page

  • Loyalty cardholders
  • Registered members who have not yet been activated
  • Customers who have installed your apps, but not your most recent
  • Subscribers to your email list

Interested in learning how Custom Audiences can help you meet your business goals? Contact us today!

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