Welcome to Facebook, a marketer’s paradise for finding your ideal audience!

Facebook has created a space for sharing. Users willingly hand over personal details daily. This includes major life events (babies, weddings, moves, job changes), family and relationship status, location, likes, demographics, and more.

This means there is a wealth of information about Facebook users, and it’s all available for advertisers to use.

Compared to other paid media, Facebook ads comes with a significant advantage: the ability to target your ideal audience and show them hyper-relevant ads.

The key is knowing who to target.

Without utilizing targeting, you might as well slap a billboard up on the highway. You’ll get the same amount of traffic. Neither audience will be qualified.

Mastering targeting means having the ability to reach a more qualified cold audience at any time.

In a previous post, we talked about the importance of creating and nurturing a warm, ideal audience. It’s true, warm audiences typically convert at a lower cost.

But knowing how to target a cold audience means you’re always able to keep your funnel full by turning a cold audience into warm, and warm into red hot buyers.

Today’s post is about creating these cold audiences inside your Facebook Ad account.

We’ll discuss 3 options for building a targeted, cold audience.

Ideal Audience Type 1: Lookalikes

If you’re already in business and you have sold your product or service, creating this first cold audience is easy.

All you’ll need is a list of email addresses for your current and past customers or clients.

An existing buyers list is the hottest list you have (they’ve already bought)! Essentially, we want to “clone” this list and create more people who are willing and able to purchase.

To do this, we need to head into Power Editor.

Jump up to the top menu. You’ll click to reveal a dropdown menu. Inside, find “Audiences.”

There, you’ll see a big blue button prompting you to “Create Audience.”

That button will give you some options for creating different types of ideal audiences. For this step, choose to create a custom audience.

Then, choose Customer File.

Here’s where you can upload your list of buyers. Make sure to name your audience something that makes sense to you so you know which list this is. Choose something like, “Buyers - Jan 2018.”

Now that you have your list of buyers ready to go, it’s time to create the lookalike ideal audience.

Head back into Audiences and select “Create Audience.”

This time, choose to create a lookalike audience.

Here’s what you’ll see.

If you click on “Source,” you’ll see options drop down. Find the audience that you just uploaded and select it.

This will now become the “source” for creating an entire ideal audience of Facebook users who are similar to your buyers.

You can now narrow by location and select the percentage of a population that you’d like to match. We tend to keep it at 1% (where 1% is most similar to your buyers list and 10% is least similar).

Give your ideal audience a name that makes sense to you, something like “Buyers Jan 2018 - Lookalike.”

If you’d like, you can repeat this process with other audiences such as your email list.

Ideal Audience Type 2: The Interest Bundle

When we work with a client, we take into account a few factors:

1. The geographical area the client serves (don’t target Asia if you only ship to North America, for example).
2. The client’s avatar (who the client intends to attract).
3. The client’s actual buyers (who the client actually attracts).

Using these factors, we create a set of rules that Facebook uses to target users who have the highest chance of converting into paying customers.

Before we get started, make sure you’ve created a list of your current and past buyers and named that audience. See above for details if you haven’t done that yet.

Next, head into “Audience Insights.”

Here, you’ll find information on all Facebook users!

It’s also a good place to find out who is connected to your page, and who makes up your saved and custom ideal audiences.

When you jump in, Facebook will immediately ask who you’re interested in learning about. For this case, select, “A Custom Audience.”

The screen will prompt you to add your custom audience. Choose the buyers list (it should be saved already if you’ve uploaded it).

Now, you can see insights into this audience.

Explore a little to find out the age, gender, location, household status, other page likes, the devices they use, and other information.

Some clients are surprised to see who their actual audience is. It isn’t always who a business intends to attract!

Take note on the composition of this ideal audience. This will be the basis of our interest bundle.

*Note: If you don’t have a buyer list to look at, just use the information about who you think your ideal customers are. It’s ok to start here. You can always modify as you collect more data.

Either way, it’s time to grab your notes and head back over to “Audiences.”

Again, select “Create Audience.”

This time, choose “Saved Audience.” Use your notes to create an audience of your choosing. Consider targeting age, gender, location, and other interests that your buyers have in common.

Ideal Audience Type 3: Video Views

If you’ve run ads for any length of time, you may already have a group of people who have seen videos from your page.

This is a great place to pull both warm and cold audiences from.

We consider a “warm” audience a user who has watched a larger percentage of a video, usually 50% - 75%.

However, Facebook also tracks users who’ve only watched 3 or 10 seconds. We consider these cold audiences because they probably haven’t watched enough of the video to know, like, or trust your brand at this point.

Here’s how to create your cold video view audience.

Again, jump into “Audiences,” like before.

Now, when you create a new audience, choose to create a custom audience again.

Choose to create an audience based on engagement, and then select Video as the type of engagement.

Now, you get to choose the videos to add to the list. Whichever videos you choose, Facebook will create an audience of people who watch part of that video. You get to decide how much they need to watch to be added to your cold audience.

Follow the prompts and answer the questions to complete the audience set up.

That’s it! These audiences are all ready to use inside your campaigns.

Now that you have 3 cold audiences to target, you can continue to add people to your funnel and move them closer to a conversion!

“Likes and comments don’t matter. They’re just “vanity” metrics!”

That’s the basic sentiment around the internet. A quick Facebook search on “vanity metrics” revealed a number of posts mocking those who pursue likes, comments, and shares.

The argument among marketers is that only the bottom line matters. After all, likes, shares, and views don’t pay the bills.

Assuming you’re not a social media influencer who gets paid to advertise on a channel, can likes, comments, and views actually pay the bills?

At Marigold Marketing Group, we’ve found the answer to be a definitive, “yes.”

… as long as you know how to monetize your page’s engagement.

Specifically, these likes, views, and comments can translate into a lower cost per lead and customer acquisition.

In this post, you’ll discover which metrics actually matter and how we’ve been able to monetize using those metrics with an overwhelming majority of our clients’ Facebook ad accounts.

The Metrics That Matter

Before we move forward, let’s define the metrics we’re focused on.

First, we’re assuming that all numbers (or a very large percentage of your numbers) represent real people who are current, former, or potential customers of your company.

So, if you’ve “purchased” a number of Facebook likes for your page, those numbers won’t increase your ROI.

Not sure how your page fares? Let’s do a quick health check.

Jump into the “Audience Insight” section inside Power Editor.

Once inside, choose to view the audience connected to your page.

Set the demographics to reflect your ideal buyers. Is your page mostly composed of those people?

For example, if you only serve the United States, you should see that most of the people connected to your page live in the U.S.

Unless you are specifically focused on India, be skeptical of too many likes coming from that area of the world. Sometimes, well-meaning (or not) page admins will purchase likes online.

The likes are then “created” using bots, and they mostly originate from places like India.

This would be an example of a page that possibly “bought” likes (and therefore can’t monetize these fans).

In contrast, here’s an example of a page that’s in good health. This company serves people in a very specific geographical area. Their audience reflects this.

Assuming the numbers on your page are representative of “real” people (not bots) who are potential buyers, here are some metrics that we’ve found can be turned into leads and customers.

• Fans

• Video Views

• Page Engagement

• Post Engagement

Let’s look at why these particular audiences matter.

Audience Temperature

When analyzing a group of people who could potentially purchase from you, they can be broken down into three basic categories:

1. Cold Audiences

2. Warm Audiences

3. Hot Audiences

A cold audience is full of people who have never heard of you. They don’t know who you are, what your brand stands for, or why they should care.

This audience isn’t necessarily a bad fit for your product or service, they simply haven’t heard of you… yet.

That can change. And when it does, they’ll join the warm audience.

The warm audience is full of prospects who know who you are. Maybe they follow your brand’s blogs, listen to your podcast, have read or listed to an interview your CEO did recently, or even saw your shop while driving to work in the morning.

For whatever reason, they have “warmed up” to you.

A warm audience is far more likely to purchase from you than a cold audience. That’s because typically it takes a prospect a couple “touches” to get to know, like, and trust a brand.

Assuming you’re a good fit for the audience, the more you interact with them, the “warmer” they’ll feel toward you.

The warmer they feel, the more likely they are to join the “hot” audience group.

A hot audience is full of people who have purchased from you and who will likely purchase from you again in the future.

This is your customer list. For most brands, this is the list that is easiest and most cost effective to market to (side note: Digital Marketer gives a really good overview of audience temperature, as well as what you should be pitching to each).

Building Warm Audiences

Now that you know that warm audiences are more likely to buy than cold audiences, you might be wondering, “how do I build a warm audience without blowing my ads budget?”

Good question.

Some warm audiences cost more than others.

For example, it likely costs you more to broadcast a television ad then to post a blog post.

The same is true when it comes to Facebook advertising.

Typically, conversion campaigns will cost more per lead than content views.

This means that asking people to sign up for your newsletter, or to buy a product or service (even if it is low cost), will typically cost more than asking someone to read a blog post, like your page, or watch a video.

However, in all of the above situations, you’re building a warm audience.

We’ll talk more about how to build a warm audience in a future post.

Monetizing Warm Audiences

Now that you’re sold on the importance of building a warm audience, it’s time to turn those so-called “vanity metrics” into cold hard cash.

Again and again, data shows us that when it comes time to ask for lead information or for the sale, warm audiences cost much less per conversion than cold audiences do.

Let’s take a look.

Here is a screen shot from a recent campaign. You can see that we’ve broken the audiences into two groups, warm and cold.

The cost per conversion for the cold audience is $7.22, whereas the cost per conversion for the warm audience is just $2.65.

Here’s another example. In this example, the goal was to get registrations for a webinar.

The cold audience resulted in $3.47 per webinar registration, whereas the warm audience resulted in just $2.76 per registration.

These warm audiences are made up primarily of people who have liked a client’s page, interacted with posts, or viewed content in the past.

For example, here’s what the results looked like specifically for the sub-set of audience members who interacted with the client’s Facebook page in the past:

You’ll see that for two of the three photos, the cost per conversion was well below the cost of conversion for the cold audience.

Note that these audiences were being sent to the same landing page. Having an optimized landing page is critical, but even the best landing page will work better on warm audiences when compared to cold.

How To Target A Warm Audience

Facebook makes advertising to warm audiences very easy.

If you’ve been active on a Facebook business page, you can start advertising to your ready-made audience right away.

The Facebook Power Editor allows you to choose an audience to market to. This is always done at the “Ad Set” level.

Inside the Ad Set section, you’ll see a place to choose your audience.

(Creating custom audiences is too much to cover here, but be on the lookout for a post about that in the future.)

Now, you’re ready to run your ads!

Give it a try. Are you able to cash in your likes, comments, and views using your own campaigns?

We’ve had so much success using these metrics to lower conversion cost that growing engagement is part of our system for every single client we work with.  

Let us know if you find the same success in your own campaigns!

In the meantime, why not find out what the “7 biggest mistakes you’re making with your Facebook Ads are”, and how to fix them:

Get more tips here.