How To Create A Facebook Custom Audience In Ads Manager
In my marketing opinion, the Facebook Custom Audience feature is the greatest thing since sliced bread and the internet. (I love bread and I love the internet!)
Facebook Custom Audience is a dream come true for any one who markets their business on Facebook and I want to explain how and why using one of my eCommerce businesses. I figure a real life example of how I use Facebook Custom Audience would be a good example that you can apply to your business.
One of my businesses is a women’s flip flop company. (Share The Love Today.com). We make really cool and ridiculously comfortable yoga mat flip flops that leave heart impressions in the sand. We donate proceeds from every sale to help support several awesome causes that have a positive impact all throughout the world. It’s a really fun business that is more of a mission for our family! We drive just about 100% of our website traffic through Facebook because its a very social product and mission.
In our first year in business we sold about 1800 pair of flip flops to about 1500 women which was a pretty good start. When we launched the business we were using Facebook ads to drive the majority of the traffic. However, Facebook Custom Audience did not exist so we used more of a “shot gun” approach with our ads. Our target audience started with ALL women between the ages of 25-60 in the United States. That ended up being around 30 million Facebook users.
While this shot gun approach was effective in creating sales, it was not effective in creating profit. On average we were spending just over $20 per customer acquisition and after overhead, that left us in the red. However, the real value was that after 1 year, we now had solid data on who 1500 customers were and everything was about to change as the Facebook Custom Audience just became available!
Facebook Custom Audience – The Game Changer!
Selling Flip flops is a seasonal business that runs from April through August. Because of this we only run our ad campaigns from April through August. In year 2, we started running our Facebook ads to our existing customers by creating a Facebook Custom Audience. When we did, we saw our customer acquisition costs fall to under $7. Yeah, we went from $20 per acquisition in year 1 to $7 per acquisition in year two 2. That lowered our customer acquisition cost by 65% and our business was immediately in the black!
The only change we made at the beginning of year 2 was to upload our existing customer data to Facebook, create a Facebook Custom Audience campaign and then run ads to our existing customers who already loved our flippers. Bingo!
When we saw how well the Facebook Custom Audience worked, we began to brainstorm about how else we could use this awesome new tool. So, we decided to create another Facebook Custom Audience but instead of using our customer list, we created a custom audience of website visitors who visited our website in year 1 but did not actually purchase anything. (This data is all available in Facebook Custom Audience if you have your Facebook pixel installed.)
We figured this custom audience was a pretty good target. After all, that had already been to our website and saw our products and mission. Maybe the timing was just not right last year. Well….sure enough, this Facebook Custom Audience proved to be a winner too. Our customer acquisition cost for this custom audience was $12 instead of $20. That still left us profitable and added even more customers into our data base that we could retarget in year 3!
I share all of that with you to say this. If you are running Facebook ads but not using Facebook Custom Audiences….please stop your campaigns and regroup. The days of shot gun adverting are done. Today, its about laser focused ads targeted directly to your customers. Facebook Custom Audience makes this possible and profitable. Do yourself and your business a favor and begin using the power targeting features that Facebook has made available to you.
Side Note: We now use our Facebook Custom Audience to create Facebook Look Alike Audiences and our sales and profits are soaring. I will create another post about what the Facebook Look Alike Audience has done for us. It has had an even greater impact than Facebook Custom Audience but you have to start with the custom audience first to gather data for a look alike campaign.
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