How to Build Custom Audiences for Meta Ads: A Step-by-Step Guide

Meta Ads (formerly Facebook Ads) allow you to reach millions of users across Facebook, Instagram, and other platforms. One of its most powerful features is the ability to create Custom Audiences—highly targeted groups of users based on their interactions with your business.

Understanding how to build and use Custom Audiences is key to creating successful ad campaigns. In this guide, we’ll walk you through the step-by-step process of building Custom Audiences for Meta Ads and explain how to use them to boost conversions and grow your business.


What Are Custom Audiences?

Custom Audiences in Meta Ads are specific groups of users you can target based on their interactions with your business. These audiences can be created from a variety of data sources, such as your website traffic, customer lists, or app activity.

Meta Ads Custom Audiences allow you to:

  • Retarget website visitors who didn’t complete a purchase.
  • Reach your existing customers with new offers or promotions.
  • Target app users who have taken specific actions within your app.
  • Engage people who have interacted with your content on Facebook or Instagram.

By targeting users who already know your business, Custom Audiences help you create more relevant ads, leading to higher conversion rates and lower ad costs.


Types of Custom Audiences

Meta offers several ways to create Custom Audiences, each tailored to different user behaviors or data sources. Here’s a breakdown of the most common Custom Audience types:

1. Website Custom Audiences

This audience is created from people who have visited your website. It’s built using the Meta Pixel, a small piece of code you install on your website that tracks user behavior.

How to Use Website Custom Audiences:

  • Retargeting: Show ads to people who visited your website but didn’t convert.
  • Abandoned Cart: Target users who added items to their cart but didn’t complete the purchase.
  • Page-Specific Audiences: Target people who visited certain pages, such as product pages or blog posts.

Pro Tip: Set up a 30-day retargeting window to reach people who visited your site in the last month, keeping your audience fresh and relevant.


2. Customer List Custom Audiences

You can upload a list of your customers (email addresses or phone numbers) to Meta Ads to create a Custom Audience. This allows you to target people who already have a relationship with your business.

How to Use Customer List Audiences:

  • Cross-Sell Products: Show ads for complementary products to your existing customers.
  • Loyalty Campaigns: Reward repeat customers with special offers or discounts.
  • Re-engagement: Target customers who haven’t purchased in a while with a win-back campaign.

Pro Tip: Make sure your customer list is clean and up to date. Meta will match your customer data with its users, and a clean list improves your match rate.


3. App Activity Custom Audiences

If your business has an app, you can create audiences based on specific actions users have taken within the app. This is done through the Meta SDK, which tracks in-app activity.

How to Use App Activity Audiences:

  • Engagement Ads: Target users who have recently opened your app but haven’t completed an important action, such as making a purchase or subscribing.
  • Retention Campaigns: Re-engage users who haven’t opened your app in a while.
  • In-App Purchases: Target users who have made in-app purchases to upsell or cross-sell other products.

Pro Tip: Create separate audiences for users at different stages of your app’s funnel (e.g., new users vs. high-value active users) to tailor your messaging.


4. Engagement Custom Audiences

You can create audiences based on how people have interacted with your content on Facebook or Instagram. This includes actions such as liking a post, watching a video, or saving a post.

How to Use Engagement Audiences:

  • Video Viewers: Target users who have watched a certain percentage of your video ads.
  • Page Interactions: Engage people who have liked or commented on your Facebook or Instagram posts.
  • Event Engagement: Retarget users who showed interest in your events but didn’t attend.

Pro Tip: Use video engagement audiences to re-engage viewers with follow-up ads, offering more information or a special discount based on their interest.


5. Offline Activity Custom Audiences

If your business collects customer data offline (e.g., through in-store purchases), you can create an audience based on that activity. This allows you to target users who have interacted with your business offline.

How to Use Offline Activity Audiences:

  • In-Store Shoppers: Target customers who made a purchase in your physical store, encouraging them to shop online.
  • Phone Leads: Target people who called your business with follow-up offers or information.

Pro Tip: Make sure to regularly upload your offline customer data to keep your Custom Audiences updated.


How to Build Custom Audiences for Meta Ads: Step-by-Step

Now that you know the different types of Custom Audiences, let’s walk through the process of creating one in Meta Ads Manager.

Step 1: Go to Ads Manager

Start by logging into your Meta Ads account and heading to Ads Manager.

Step 2: Select “Audiences”

In the left-hand menu, click on Audiences. This will bring you to a page where you can create and manage all your Custom Audiences.

Step 3: Create a Custom Audience

Click on the blue Create Audience button and select Custom Audience from the drop-down menu.

Step 4: Choose Your Source

Meta will ask you to choose a source for your audience. This could be your website, customer list, app activity, engagement, or offline activity. Select the appropriate source based on your data.

Step 5: Define Your Audience

After selecting your source, you’ll be prompted to define your audience. For example, if you’re creating a Website Custom Audience, you’ll need to choose which pages visitors should have interacted with (e.g., product pages), as well as a time window (e.g., in the last 30 days).

Step 6: Name and Save Your Audience

Give your audience a descriptive name (e.g., “30-Day Website Visitors” or “Email Subscribers”) and click Create Audience. Your Custom Audience is now ready to use in your ad campaigns.


How to Use Custom Audiences in Your Meta Ads

Once you’ve created your Custom Audiences, you can use them to target your ads. Here are a few ways to leverage Custom Audiences to improve your Meta Ads campaigns:

1. Retargeting

Retargeting is one of the most effective ways to use Custom Audiences. You can show ads to people who visited your website, opened your app, or interacted with your social media posts but didn’t convert.

  • Example: Show a retargeting ad to users who added items to their cart but didn’t complete the purchase, offering a discount to encourage them to finish.

2. Lookalike Audiences

Lookalike Audiences allow you to find new people similar to your existing customers or audience. Meta Ads will analyse your Custom Audience and find users who share similar characteristics.

  • Example: Create a Lookalike Audience based on your top 1% of customers to find new potential buyers who are likely to convert.

3. Exclusion Audiences

You can exclude certain Custom Audiences from your campaigns to avoid showing ads to people who have already converted.

  • Example: Exclude people who have already completed a purchase from your retargeting ads to avoid wasting ad spend.

FAQs

1. What is a Custom Audience in Meta Ads?

A Custom Audience in Meta Ads is a group of users who have interacted with your business, either through your website, app, customer list, or social media interactions. It allows you to target these specific users with tailored ads.

2. How do I create a Custom Audience for Meta Ads?

To create a Custom Audience, go to Meta Ads Manager, select Audiences, and click Create Audience. Choose your data source (e.g., website visitors, customer list), define your audience, and save it for use in your ad campaigns.

3. How can I use Custom Audiences to improve my ads?

Custom Audiences help improve your ads by allowing you to target people who have already shown interest in your business. You can use them to retarget website visitors, engage existing customers, and create Lookalike Audiences to find new customers.

4. What is the difference between a Custom Audience and a Lookalike Audience?

A Custom Audience targets users who have interacted with your business, while a Lookalike Audience targets new users who share similar characteristics to those in your Custom Audience.

5. How often should I update my Custom Audience?

It’s important to regularly update your Custom Audiences to keep them relevant. For example, update your customer list or offline activity data every few weeks to ensure your ads are targeting the most current audience.


Conclusion

Building Custom Audiences for Meta Ads is a powerful way to reach the right people at the right time. Whether you’re retargeting website visitors, engaging with existing customers, or finding new audiences through Lookalikes, Custom Audiences allow for highly targeted and effective campaigns. Now that you know how to create and use Custom Audiences, you can start improving your ad performance and driving better results for your business.

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