Lookalike audiences have become a very powerful tool on Facebook nowadays. This field is basically for the marketing teams on Facebook. According to Facebook,
“LTV Is a value associated with your customers based on how much and how often they spend with your business throughout their relationship with you.”
All the people should be treated equally, but there should be some special treatments for the ones who are regular and loyal customers. This article gives you brief information about what LTV is? Why does one use Lifetime Value Audiences and how to use it?
What is LTV Audience?
As said earlier, it is a value which is associated with the customers you have, these customers are known for their regularity and loyalty. Let us see an example, this will give you a clear picture of what LTV is?
If you are in a marketing team, you will understand the huge difference between the customers who buy regularly but pay less and the customers who pay a huge amount of money each time but buy semi-regularly. Here comes the role of Lifetime Value Audience (LTV). It gives you a more in-depth look at customer behavior as it can be calculated to a specific time period, including lifetime, month to month, and even to forecast.
LTV can also be used to determine how much to spend on a customer expenditure that will give you the highest return, and even how to shape your product or service to keep these high LTVs coming back.
Why will you use Lifetime Value Audience (LTV)?
LTV can be used to help marketers harness the power of data to drive growth. AppsFlyer has teamed up with Facebook to create Lifetime value: the cornerstone of app marketing. It also helps to target people who already know and love your product or service. Users can directly skip to promotions and do not need to spend their money and time on awareness. Initially, the cost for these ads may be higher, but LTV Audiences is based on the lifetime value of a customer.
How to a Lookalike Audience?
Step 1: Create a new Custom Audience
To create a new custom lookalike audience you can click: https://www.facebook.com/ads/manager/audiences/ to get started with the first step.
Step 2: Choose your source
The source that you choose should be based on apps, conversion pixels, or the Facebook page.
Step 3: Select location
Select the country you belong to and where you would like to find a similar set of people.
Step 4: Create a lookalike audience
Click to generate your value-based lookalike audience. You’ll use this group similar to how you would a regular Lookalike Audience, but keep in mind that who you’re targeting, and what messaging would be most appropriate.
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