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Facebook Marketers: How to Amplify Your Ad Targeting with Custom Audiences

Written by: Gabe Donnini, Optimization Analyst

Facebook Custom Audiences is a powerful tool for segmenting your target audiences. It provides the opportunity for marketers to reach a specific set of people on Facebook with an incredibly relevant message. Studies have shown that Custom Audiences delivers a 5.5x greater ROI than standard interest targeting. So for the same amount of Facebook ad spend invested, people targeted through Custom Audiences generated 5 times more revenue as compared to standard interest targeting.

Custom Audiences lets marketers deliver ads to people they already have a relationship with and even further target specific segments by demographics, interests, and actions. Custom Audiences targeting draws on the power of user segmentation to drive highly effective and efficient advertising on Facebook while supporting various campaign goals.

By leveraging Facebook Custom Audiences first party data, marketers have the opportunity to:

  1. Discover new audiences with similar attributes to their most valued customers
  2. Support building relationships with existing users or leads,
  3. Uncover consumer insights and trends surrounding valuable or particular customer segments
  4. Target groups of different users using offline databases.

Understanding the value of user segmentation is one thing, but knowing where to start can be an entirely different battle. When taking the first step to divide up your user base into different groups with their own respective purposes–it is important to think qualitatively in terms of differentiation amongst users, and then quantitatively in terms of differentiation within an individual user group. By thinking both qualitatively and quantitatively, you can design Custom Audiences and respective Lookalike Audiences to support the ability to hit your targets, regardless of the goal.

In terms of qualitatively dividing your user base into different groups with their own specific purposes, it can be helpful to segment your users by both the actions that they have taken, as well as the their current status as it is relevant to your business.

For instance, a game developer could create user groups for their most popular app that includes:

  1. Users who have installed the free version of the app
  2. Users who have installed the paid version of the app
  3. Users who have made a purchase in the app
  4. Users who have not used the free/paid app for a given amount of time
  5. Users who have installed the free version, the paid vanilla version, and any other paid version.

Of course, there are many other ways we can segment user groups to support effective and efficient outreach or advertising.

Once you have a good idea of the TYPES of users you want to segment, you can further improve the effectiveness and accuracy of these groups by slicing and dicing based on key metrics and performance indicators. Directly below, you can see some examples of this strategy in action.

All Purchasers:

  1. Top 10% of all purchasing users
  2. Users who have made a purchase in the last 30/60/90 days
  3. Users who have made multiple purchases

Lapsed Users:

  1. Lapsed Users who have made a purchase
  2. Lapsed Users who have not played the game in the last 30/60/90 days
  3. Lapsed Users who have installed multiple Angry Birds apps but have not played in the last 30/60/90 days

Welcome-BackHopefully the above gave you a good idea of different ways to slice and dice your user groups to provide additional insight, value, and direction. Of course, the options are not limited to the above–it serves mainly as an example. Lets dive a little bit deeper, using Lapsed Users as an example, to explore some of the different ways you can employ Custom Audiences and user segmentation to drive performance.

Lapsed Users who have made a purchase:

An important audience segment to look at is Lapsed Users who have made a purchase. This group of users is very interesting, because they display an interest in the game, as well as a strong enough interest or alignment to engage in purchasing behavior. Given this information, you can begin experimental targeting campaigns aimed at re-engaging these users, offering incentives, or simply reminding them that they have not played the app in a while with an offer to return to the game.

Additionally, you can create Similarity and Reach Lookalike Audience based off of this group of users to identify similar audiences to support the discovery and identification of revenue generating users. Because you know that these users have exhibited a strong enough intent to make a purchase in the game, you can also infer that they would be eligible candidates for potential players of a related gaming app title, and thereby could be used to inform future targeting opportunities.

Lapsed Users who have not played the game in the last N days:

With these groups of users, you are covering a much more general swath of people, which affords several different strategies. For instance, you could engage in a multi-phase campaign which messages groups of lapsed users based on how long it has been since they last played the game. Also, given the broad range of this group, we recommend creating Reach Custom Audiences and Lookalike Audiences which would allow you to explore the broad opportunity for identifying new users who are similar to current app users but whom may not have played or installed the game.

Another interesting strategy to employ would be to create a Lookalike Audience based off the group of all lapsed users, and then create an exclusion group based on lapsed users who have not played the game in 30 days, to prevent alienating customers, while still reaching users who may be interested in playing variants of the gaming company franchise.

Lapsed Users who have installed multiple apps but who have not played in the last N days:

By creating a group of lapsed users who have installed multiple games, you have identified an audience which has an extremely high alignment, but at the same time, has seen a drop of interest or fallen out of touch. This audience group represents a perfect candidate for re-engaging in light of new apps. It is also a high value segment, given the propensity to play multiple titles. Given this, it may be worthwhile to invest more in recapturing or engaging with this high value group of users.

Of course, we mentioned only some of the Custom Audience possibilities at marketer’s disposal. For advertisers that are truly excited by the numerous opportunities to crush it in the market, contact us to learn more about Nanigans’ performance marketing solution.

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