Some advertisers are seeing diminishing returns from 1% Lookalike Audiences

New Ideas in MarketingEssential news for marketers, summarised by YouGov
May 17, 2019, 4:57 AM UTC

Part of the reason could be the tool being promoted as a “hack” to advertisers.

This piece points out that some of the advertisers that have typically relied on the capabilities of Facebook’s 1% Lookalike Audiences are now starting to see reduced returns. Lookalike Audiences allow marketers to discover like-minded users based on their Custom Audiences.

Gil David, a Facebook ads specialist and founder at Run DMG observed that since Facebook stopped using third party data, he noticed a dip in Lookalike performance, which restored after a “few months”. He recommends “layering” two different 1% Lookalike Audience lists.

David states that one reason for Lookalike’s poor performance being observed by some could be the result of Lookalike Audiences being promoted as “hacks” for advertisers that are new to the platform, thereby “crowding” the 1% audience segment. The article cautions that these diminishing returns being observed might be indicative of other issues.

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[5 minute read]