Facebook Updates Lookalike Audiences, Launches Value Optimization

Facebook released two new tools Monday to help marketers identify the consumers most likely to make a purchase or download information. One is new, while the other is an enhancement of a feature launched four years ago.

The first tool, Value Optimization, began rolling out today and will become available to eligible businesses within the next few months. The Value Optimization tool enables advertisers to optimize their ad campaigns based on the data and purchase value passed through the Facebook pixel, whereas the second tool -- value-based Lookalike Audiences -- allows marketers to include a value column in the their customer list.

Search marketers are familiar with Lookalike Audiences in Facebook. The tool officially launched in Facebook about four years ago to give marketers the ability to reach potential new consumers that look to be their highest-spending customers.

David Rose, director of performance marketing, Episode at Pocket Games, wrote in a blog post that while testing the enhanced Lookalike Audience feature on its mobile storytelling app Episode, the company saw a decline of 13% in cost per install and an overall 53% increase in return on ad spend.

The purchase values sent from Facebook pixels estimates how much a person might spend with a specific business during a seven-day period. The ad's bid is then automatically adjusted based on the estimate. It allows campaigns to deliver ads to people who are likely to spend more with the business.

The update no longer requires advertisers to create small groups of audiences based on the amount spent or the lifetime value prior to creating a Custom Audience.

Facebook has added a value column for the entire customer list, which allows the tool to create an additional signal for people most likely to make a purchase after seeing an ad. Value-based lookalikes can be found across all objectives in Ads Manager or Business Manager.

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