Wondering how to reach the right people with your Facebook ads?
Have you heard of Facebook Custom Audiences but aren’t sure how they work or how to set them up?
If you’re running ads without targeting the right audience, you’re wasting your budget. That’s where Facebook Custom Audiences come in. This guide will show you what a Facebook Custom Audience is, how to create one, and how to use it effectively to boost your ad performance.
What is a Facebook Custom Audience?
A Facebook Custom Audience is a group of people you can target in your ads based on data you already have. This data may come from your customer list, website visitors, app users, or people who have interacted with your Facebook or Instagram content. Instead of targeting random people, Custom Audiences let you reconnect with users who already know your brand. This helps you show more relevant ads and increase conversions. For example, you can run a special discount ad to people who visited your website but didn’t make a purchase. It’s a powerful way to retarget warm leads and improve your ad results.
Why Use Facebook Custom Audiences for Targeting?
Using Facebook Custom Audiences is one of the most powerful ways to improve ad performance. It lets you target people who already know your brand—like past customers, website visitors, or app users. This increases your chances of engagement, conversions, and lower ad costs.
Reach People Who Already Know You
When you show ads to people who’ve interacted with your business, they’re more likely to respond. Custom Audiences help you reconnect with website visitors, email subscribers, or previous customers.
Improve Ad Relevance and ROI
Targeted ads feel more personal and relevant. You can customize your message based on users’ past actions, which increases the chances of clicks and purchases—leading to a better return on ad spend (ROAS).
Retarget Website and App Visitors
You can remind people who visited your site but didn’t buy to come back. With pixel tracking or SDK, you can follow up with these warm leads using special offers or reminders.
Create Lookalike Audiences
Once you build a Custom Audience, you can use it to find new people similar to your best customers. Facebook automatically finds users with similar interests, behavior, and demographics.
Types of Facebook Custom Audiences
Facebook offers different types of Custom Audiences depending on where your audience interacted with your business. Each type helps you target users more accurately based on their behavior.
Website Visitors
You can create a Custom Audience of people who visited your website. This works by installing the Facebook Pixel. You can target all visitors or focus on those who viewed specific pages or took actions like adding items to cart.
App Users
If you have a mobile app, you can target people who downloaded or used it. Facebook uses the Facebook SDK to track app activity like installs, in-app purchases, or certain screen views.
Customer List
Upload a list of customer emails, phone numbers, or user IDs. Facebook matches this data to user profiles so you can show ads to your existing customers, leads, or newsletter subscribers.
Facebook Page Engagement
This includes people who interacted with your Facebook Page content. You can target users who liked, commented on, or shared your posts, sent messages, or clicked on your call-to-action button.
Instagram Engagement
Target people who interacted with your connected Instagram account. This includes likes, comments, saves, profile visits, and story views.
Video Viewers
Create an audience from people who watched your videos on Facebook or Instagram. You can choose viewers based on how long they watched (e.g., 3 seconds, 10 seconds, or 50% of the video).
Shopping Activity (Facebook or Instagram Shop)
If you sell products through Facebook or Instagram Shops, you can build an audience of people who browsed or interacted with your shop or product listings.
Lead Form Engagement
Target users who opened or submitted a lead form from your previous Lead Ads campaign. This helps you follow up or re-engage interested prospects.
How to Create a Facebook Custom Audience (Step-by-Step)
If you want to reach people who already know your business—like your website visitors, app users, or social media followers—creating a Facebook Custom Audience is the best way to start. It helps you show your ads to the most relevant people, increasing your chances of getting results without wasting your budget. Below is a simple, step-by-step guide anyone can follow.
Step 1 – Open Facebook Ads Manager and Navigate to “Audiences”
First, log into your Facebook Business Manager or Ads Manager account. From the main dashboard, click on the menu (the nine-dot grid at the top left), and select “Audiences” under the “Assets” section. This is where you manage all your saved, custom, and lookalike audiences.
Step 2 – Click “Create Audience” and Select “Custom Audience”
Once inside the Audience Manager, you’ll see a blue button labeled “Create Audience.” Click it, then choose “Custom Audience” from the dropdown. This option allows you to build an audience using your own data or user interactions.
Step 3 – Choose a Data Source for Your Audience
Facebook will now ask you to pick a source to collect data from. You can create your Custom Audience using:
- Website traffic (via Facebook Pixel)
- App activity (from your mobile app)
- Customer list (like emails or phone numbers)
- Facebook Page engagement
- Instagram business profile interactions
- Video viewers
- Event responses, and more
Choose the source that aligns with your business goal. For example, if you’re retargeting website visitors, pick “Website.”
Step 4 – Set Audience Rules and Filters
After selecting a source, define the rules that decide who gets added to your audience. For example, you can include people who visited a certain product page in the last 30 days or those who interacted with a specific post. You can also exclude certain people, like those who already purchased. This helps make your targeting more accurate.
Step 5 – Name and Describe Your Audience
Give your audience a clear, descriptive name so you can easily find it later. For example, name it “Homepage Visitors – 30 Days” or “Engaged Video Viewers – June 2025.” You can also add a short description to keep things organized, especially if you’re managing multiple audiences.
Step 6 – Click “Create Audience” to Finalize
Once all settings are in place, click the “Create Audience” button. Facebook will now begin building your Custom Audience based on the criteria you selected. If you connected your Pixel, CRM, or app properly, the data will begin syncing automatically.
Step 7 – Wait for the Audience to Be Ready
Custom Audiences don’t appear instantly. It might take a few minutes or even hours for Facebook to process the data and label your audience as “Ready.” Once the status is active, you can use this audience in your ad campaigns.
How to Use Facebook Custom Audiences in Ads
Once you’ve created a Facebook Custom Audience, the next step is to apply it to your ad campaigns. Using these audiences helps you show ads to people who already know your business—making your ads more effective and affordable.
Step 1 – Start Creating a New Campaign
Go to Facebook Ads Manager and click the “+ Create” button to start a new campaign. Choose your campaign objective, such as “Conversions,” “Traffic,” or “Leads,” based on your marketing goal.
Step 2 – Choose a Custom Audience in the Ad Set Level
After setting your campaign objective, move to the Ad Set section. This is where you define your audience. In the “Audience” section, look for the box labeled “Custom Audiences.” Click inside and select the audience you previously created from the dropdown.
Step 3 – Narrow Down or Expand Your Targeting
You can combine your Custom Audience with other targeting options like location, age, gender, or interests. For example, you might want to show your ad only to website visitors who live in a certain city. This helps make your campaign more focused.
Step 4 – Set Budget, Schedule, and Placement
Continue setting your ad details like daily budget, start/end dates, and where your ad will appear (Facebook Feed, Instagram Stories, etc.). These settings work the same whether you’re using a custom audience or not.
Step 5 – Launch Your Campaign
After designing your ad creative in the final step, click “Publish.” Your ad will now start reaching people from your Custom Audience list—whether it’s website visitors, video viewers, or past customers.
Best Practices for Better Results with Custom Audiences
To get the most from Facebook Custom Audiences, you need more than just uploading a list or setting up a pixel. Use these proven strategies to improve your targeting, boost conversions, and run more successful ad campaigns.
Keep Your Audience Lists Updated
Regularly refresh your customer lists to include recent buyers or remove outdated contacts. This ensures your ads reach active users who are more likely to respond.
Segment Your Audiences for Specific Messages
Instead of using one big list, divide your audience into smaller groups like “website visitors in the last 7 days” or “past buyers.” This allows you to create personalized ads that match user behavior.
Use Exclusion Lists to Avoid Overlapping
Exclude people who’ve already converted or seen your ads too often. This helps reduce ad fatigue and saves money by not showing ads to people who no longer need them.
Test Different Custom Audience Types
Try different sources like email lists, video viewers, or Instagram engagers. Compare the performance to find out which audience gives you the best return.
Combine with Lookalike Audiences
After building a Custom Audience, create a Lookalike Audience to reach new people who are similar to your current users. This expands your reach without losing targeting accuracy.
Common Mistakes to Avoid with Custom Audiences
Even experienced advertisers can make simple mistakes when using Facebook Custom Audiences. Avoiding these errors can help improve your ad performance and reduce wasted budget.
Uploading Outdated or Incomplete Data
If your customer list is old or missing key details like phone numbers or emails, Facebook may not be able to match users properly. Always upload fresh and complete data for better accuracy.
Targeting Audiences that are too Broad
Using one large audience without any segmentation can result in poor engagement. Narrow your audience based on specific behaviors, interests, or time frames to get better results.
Not Using Facebook Pixel Correctly
Many businesses install the Facebook Pixel but forget to set up events or test it properly. Make sure your pixel is active, tracking correctly, and firing events like “Add to Cart” or “Purchase.”
Overlapping Audiences in Campaigns
Running ads to similar audiences without exclusions can lead to competition between your own ads. Always check for overlap and use exclusions where needed to avoid driving up costs.
Ignoring Performance Data
Failing to analyze how your Custom Audiences perform means missed opportunities. Use Facebook Ads Manager reports to see which audience converts best and optimize accordingly.
Final Words: Mastering Facebook Custom Audiences
Facebook Custom Audiences are a powerful tool to reach the right people at the right time. Whether you’re retargeting website visitors, reconnecting with past customers, or building lookalike audiences, this feature helps you get more value from every ad dollar.
The key to success is using clean data, choosing the right audience type for your goal, and testing regularly. Don’t just set and forget—watch performance, refine your targeting, and stay updated with Facebook’s tools and policies.
If you’re serious about growing your business on Facebook, learning how to create and use Custom Audiences is a smart move. It gives you control, saves budget, and drives better results from your campaigns.
Frequently Asked Questions (FAQs)
What is a Facebook Custom Audience?
A Facebook Custom Audience is a group of users you create based on your existing data, like website visitors, customer emails, or app users. You can target these people directly in your Facebook ad campaigns.
Are Facebook Custom Audiences free to create?
Yes, creating Custom Audiences is free. You only pay when you run ads targeting them.
What data can I use to build a Custom Audience?
You can use customer lists, website traffic, app activity, video views, Instagram engagement, and Facebook Page interactions.
Can I use Custom Audiences for Lookalike targeting?
Yes. You can create Lookalike Audiences from a Custom Audience to reach new people who are similar to your current customers.
How long does a Custom Audience stay active?
By default, audiences stay active as long as they are connected to a data source and being used in ads. You can also set a duration (like 30 or 180 days) when creating the audience.
