If you've been running Facebook ads for a while, you've probably noticed that not all customers are created equal. Some bring in revenue, stay loyal, and recommend you to others. Others? They rarely convert or disappear after one purchase.
The smart move is to find more people like your best customers. That's exactly what Facebook Lookalike Audiences do. They're one of the most effective audience targeting tools available, and if you're not using them, you're leaving money on the table.
What Are Facebook Lookalike Audiences?
A Lookalike Audience is a group of people who share similar characteristics and behaviours with a group you already identify as valuable. Facebook's algorithm analyses your best customers and then finds millions of other people who match their profile.
Think of it this way: your best customers have certain interests, demographics, shopping habits, and behaviours. Facebook studies those patterns and says, "We've found 2 million other people in the UK who look just like these folks." Those are your Lookalike Audience.
The beauty? You don't have to define the exact targeting criteria yourself. Facebook's machine learning does the heavy lifting, and it's genuinely accurate.
How to Create a Lookalike Audience
Create a Source Audience
Start with a Custom Audience of your best customers. This could be your email list, website visitors who purchased, or customers with the highest lifetime value. The higher quality your source audience, the better your Lookalike will perform.
Go to Audiences in Ads Manager
Navigate to Audiences in Meta Ads Manager, select "Create Audience," then choose "Lookalike Audience." Select your source audience from the dropdown.
Choose Your Location and Size
Select which countries to target (start with the UK or wherever your customers are). You can also adjust the similarity percentage: 1% looks most like your source audience, while 10% is broader but reaches more people.
Create and Wait
Click create, then wait 24-48 hours for Facebook to build your audience. You'll get a notification when it's ready. Start small with 1% and test performance before expanding.
Best Practices for Lookalike Audiences
Use Your Highest-Value Customers
Don't base your Lookalike on all customers. Create a Custom Audience of customers with the highest lifetime value, those who purchased multiple times, or those who referred others. Quality input = quality output.
Start with 1% Similarity
The 1% Lookalike is your tightest match. Test here first, measure the results, then gradually expand to 2-3%. The 10% lookalike casts a wider net but may include less qualified prospects.
Combine with Other Targeting
Lookalike Audiences work brilliantly when combined with interest or behaviour targeting. For example, if you sell fitness supplements, layer your Lookalike with interests in "health" or "fitness." This narrows down to people who match your customers and care about your industry.
Refresh Your Source Audience Regularly
Update your Custom Audience every 30-60 days with your newest customers. Facebook's algorithm stays sharper when it's working with fresh data about who's actually converting right now.
Test Different Lookalike Percentages
Run separate campaigns against 1% and 3% Lookalikes for two weeks. Compare cost per acquisition and return on ad spend. Most businesses find 1-2% delivers the best results, but your industry might be different.
Pro Tip: Create multiple Lookalike Audiences from different source segments. One from your highest-spenders, one from your most-loyal repeat customers, one from people who abandoned carts. Then test them all. Your best-performing segment becomes your gold standard for scaling.
Common Mistakes to Avoid
Using a Too-Small Source Audience — Facebook needs at least 100 people (and ideally 500+) to build an accurate Lookalike. If your Custom Audience is tiny, expand it first.
Not Updating Your Audience — If you create a Lookalike in January and don't touch it until June, Facebook's data gets stale. Refresh monthly.
Ignoring Performance Data — If your Lookalike is underperforming cold traffic, it's not the strategy—it's likely the source audience. Go back and refine who you're sourcing from.
Scaling Too Quickly — Don't jump to 10% Lookalikes right away. Let 1% prove itself first. Patience beats guesswork.
Want expert guidance on setting up Lookalike Audiences that actually convert? DPOM's Facebook Ads Management service handles audience strategy, testing, and optimisation for you. We also offer Social Media Management for Small Businesses to complement your ad strategy.
Or build your own custom package to focus on exactly what your business needs.
The Verdict
Lookalike Audiences turn your best customers into a blueprint for finding more just like them. They're data-driven, scalable, and they work. If you're still relying on broad interest targeting or demographic filters, Lookalikes will immediately improve your results. Start small, test rigorously, and let Facebook's algorithm do what it does best—finding qualified prospects who are already primed to buy from you.
Brett Dixon
Founder & Managing Director of DPOM. Brett founded DPOM nearly 15 years ago after a career in marketing working with Harvey Nichols, BBC Top Gear, Formula One circuits, and UK Trade and Investment. His passion became helping smaller businesses grow — with honest advice, no jargon, and realistic expectations.
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