What’s a Lookalike Audience?
Lookalike audiences are created from characteristics found in your best customers, so you can reach relevant new prospects who are likely to be interested in your business.
By analyzing the characteristics of your existing customers, you can then build lookalike audiences who represent similar consumer profiles – similar lifestyles, interests, consumer behaviors, and media preferences.
This way, you know you are reaching people who are most likely to be interested in your product or service because they resemble those who already are.
How to Build a Lookalike Audience
Whether it’s through your in-house first party data or with the help of your data partners, you’ll need a combination of data sources in order to best understand the qualities of your ideal customers.
For example, you’ll not only need offline data such as geo (where customers live), demo (how old they are, their marital status, etc.), and purchase information (what they buy), but also understand what your customers are surfing online, how often they engage with their emails, what apps they use most on their mobile devices, and so on.
People are no longer static in their consumer behaviors; they aren’t limited to postal mail or one desktop at home. Rather, they are always engaged across various platforms, intaking promotions, ads, offers, brands, news, etc. through their mobile devices wherever they go.
Therefore, one of the essential aspects of building a lookalike audience is to understand, analyze, and use all of the valuable consumer data that you can – most importantly, mobile behaviors.
3 Ways Lookalike Audiences Boost Revenue
1. You’ll expand your reach.
With lookalike audiences, you’ll reach new people who are likely to be interested in your product and/or service because they are similar to people who already are.
Your team doesn’t have to launch an entirely new campaign to gather new prospects. Instead, marketers can observe within their existing customer base to reach the most relevant consumers.
2. You’ll see higher conversion rates with lower acquisition costs.
A study by Exelate found that utilizing lookalike audiences results in at least twice the number of customer conversions than utilizing standard targeting.
By targeting people who are actually interested and delivering relevant ads to them, you’re not only increasing customer engagement but also eliminating marketing dollars wasted on consumers who have no interest in your offers.
Lookalike targeting is a powerful and cost-friendly way to reach the right people in the right places.
3. You’ll better understand how to keep your customers happy.
By gaining deeper insights into your existing and potential customers, you can better serve them and anticipate their needs for a lasting brand-consumer relationship.
If you understand your best customers’ preferences, interests and behaviors, you can anticipate their wants and needs and continuously deliver a positive consumer experience for them so that they keep coming back for more.
In an era where ads are flooding every digital platform on each individual’s many devices, the company who takes the time to get to know its customers and deliver a personalized experience will stand out of from the competition.
Are You Falling Behind?
Utilizing lookalike audiences will enhance your marketing reach, conversion rates, and brand-consumer relationships.
It’s essential to understand your best customers and what makes them happy in order to analyze and segment target audiences that can be effectively reached.
With more consumer data available than ever before, lookalike targeting is just one of the powerful ways that marketers can optimize a data-driven strategy.