Competitor Products: Lookalike Modeling vs Adaptive Targeting Opt
There are a number of aspects that make up a successful social media marketing campaign. As well as using the right creatives, we need to find the right audience and ensure that we’re reaching them at the right times.
In this guide, we’re going to focus on targeting. How do you find the right audience? How do you make sure that everybody who sees your ad will have some level of interest? It’s impossible to get a conversion rate of 100%, but that doesn’t mean we can’t push the limits of what’s possible.
For many years, lookalike modelling has led the way with audience targeting. Developed by Facebook, and then integrated by a whole host of other platforms, the idea is to start with a group of existing customers. From here, the algorithm will find others who share similarities to this group. In theory, because of the similarities, the newly discovered audience will have some form of interest in the brand and products. With any luck, a certain percentage will click through and become patrons of the business.
Thanks to Facebook, the process of creating a lookalike audience is easier than ever. For many, the hardest part is building a custom audience and gathering the details of existing customers. The admin of your Facebook Ad account will follow these steps:
- Go to Audiences> Create Audience> Lookalike Audience
- Select your custom audience (i.e. your group of existing customers)
- Choose the countries based on where you would like your new customers located
- Play around with the slider to determine the size of your new audience
And you’re ready to go!
Building a Custom Audience
When building a group of existing customers, we recommend looking at transaction value, lifetime value, engagement and total order size. If somebody has been a repeat customer for two years, for example, you should find others like them. In our experience, you’ll need a minimum of 1,000 people in this custom audience. The more customers you add, the more likely Facebook is to find people with similarities.
Choosing an Audience Size
Furthermore, be careful when choosing the size of your new audience. Go too small, and you will not have enough quantity to support the quality. On the other hand, with a huge audience, some leads will inevitably be weaker than others.
Benefits of Lookalike Modeling
As you’ve probably guessed, the biggest benefit of lookalike modelling is that you can find Facebook users similar to those who already paid for your service. Wouldn’t it be great to clone somebody who visits a physical store regularly so you can double your income on the spot? With lookalike audiences, this is a good way of getting close.
One of the greatest benefits of lookalike modelling is that it offers flexibility with audience size. As mentioned previously, the size of your new audience will determine just how closely they will resemble your existing, loyal customers. The more you refine the search, the fewer people you’ll find… but they will have many traits close to your existing audience. Over time, you’ll widen the search and take advantage of quantity rather than quality (which is actually good in this case).
While lookalike modeling still has our attention, there’s now competition from adaptive targeting. In particular, we’re seeing Trapica lead the way with real time data and continual improvement in this area. If you haven’t seen how it works previously, allow us to explain.
Trapica will work alongside your ad campaigns using machine learning. As the campaign goes on, this software learns your audience and builds profiles in real time. Thankfully, this resolves one of the most common problems for businesses — not knowing or understanding your target audience. For a long time, businesses have located their audience without knowing anything about them. Now, Trapica can help them understand their customers.
As the campaign runs, it will assess the online behavior and interests of your customers. The more you learn, the more you save. You no longer have to worry about reaching out to people who don’t have aligning interests and behaviors.
Why Choose Adaptive Targeting?
Lookalike audiences are good, but there’s still a lot of work involved. You’ll need to manually create your custom audience, set everything up on Facebook, get a new list of names — and even then, you still need to act on this list and create new campaigns. With Trapica and adaptive targeting, everything is achieved automatically. As an autonomous platform, it collects real time data in order to build a profile of your customers.
However, it doesn’t end there. Utilizing an A/B testing tool, Trapica will continually ask questions of your campaign, and it goes beyond targeting. Is this campaign targeting the best possible audience for the highest ROI? Is it using the right creatives? Is it bidding the right amount? Again, there’s no human interaction, since AI takes charge of the whole process. As long as you set the limits during setup, Trapica will do the rest. Much easier than lookalike modelling, right?
We can go further, though, with Trapica’s prediction features. Using real time data, it will use the most recent information to search for others who may have an interest in your products. Since the platform continually assesses your audience, it’s always seeking the most appropriate people depending on who is converting at any given moment. If you were to do this manually, it would take many hours and a team of skilled experts to achieve. Rather than deciding on an audience and targeting these people regardless of what happens, Trapica’s adaptive targeting continually searches for more potential patrons of your business.
Since we’re comparing lookalike modelling to adaptive targeting, we should note the long-term potential of the latter. Regardless of which tool you use, there’s no way manual targeting could compete with adaptive targeting when it comes to scaling. As your business grows and more people convert from ad campaigns, adaptive targeting will continue to find the right people.
Platforms like Trapica will scale the best performing campaigns while reducing the funds going into campaigns that aren’t working so well. With this, you can have confidence that you’re always reaching out to the right people even as your business grows and your marketing budget changes.
To finish this guide, we want to do a product comparison between Trapica and Albert, which is an AI marketing platform that uses lookalike modelling rather than adaptive targeting. Much like Trapica, Albert will perform A/B testing and attempt to improve campaigns as much as possible. If something isn’t working, the platform will make the necessary changes. If a change doesn’t quite work, it will revert back to normal and look for another solution.
While many people have found success with Albert, it can’t compete with Trapica in the long-term. In 2020 and beyond, adaptive targeting will be the focal point for marketers all over the globe. Lookalike modelling was reliable and useful for a time, but adaptive targeting is a better way. We can now act on real time data, and thereby continually find new audiences that are likely to convert.
What’s more, Trapica has free tools for you to try, like Trapica Suggest, which performs keyword research. In a matter of seconds, you’ll learn more about the keywords that customers use to discover your business. Type in a keyword and you’ll see a list of similar keywords and the percentage at which they overlap. Now, you have guidance for all future content, ad campaigns and possibly even product development.
In the battle between adaptive targeting and lookalike modeling, we believe adaptive targeting will take over this year — with platforms like Trapica leading the way!