LinkedIn Retires Lookalike Audiences: What You Need to Know
LinkedIn, a major platform in the digital advertising landscape, recently announced that they are discontinuing lookalike audiences, a popular targeting option for advertisers. This change will take effect on February 29, 2024.
But what does this mean for marketers who have been using lookalike audiences to reach their target audience? In this post we’ll go over why this shift is happening and what the alternatives to lookalike audiences are.
What Are Lookalike Audiences?
Lookalike audiences are a type of targeting option that allows you to reach new users who are similar to your existing customers or website visitors. This is done by using data about your existing audience, such as demographics, interests and professional background, to identify new users who share similar characteristics.
This tool was particularly useful for B2B marketers due to LinkedIn’s professional context and rich data on users’ job functions, industries and seniority levels. It helps drive brand awareness, lead generation and, ultimately, sales by efficiently reaching potential customers who are likely to be interested in what you’re offering.
LinkedIn lookalike audiences have been effective for several reasons:
- Reach Expansion: They allow businesses to reach beyond their existing network and find new prospects who are likely to be interested in their products or services.
- Increased Relevance: Ads are shown to individuals who are similar to an advertiser’s best customers, making the content more relevant and engaging.
- Efficiency: By targeting users similar to those already interested in your business, you can improve the efficiency of your ad spend.
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Why Is LinkedIn Retiring Lookalike Audiences?
LinkedIn has not given a specific reason for retiring lookalike audiences, but there are a few possible explanations.
One possibility is that lookalike audiences are not as effective as they once were, due to changes in the way that LinkedIn collects and uses data. Another reason may be privacy concerns, as this function can be used to target users based on personal data without their explicit consent.
This feature was instrumental in helping advertisers reach new individuals who resembled their existing customers, so now the phasing out of lookalike audiences pushes marketers towards more advanced targeting options.
When LinkedIn’s lookalike audiences are discontinued at the end of February 2024, this will mean that:
- New lookalike audiences can’t be created and existing lookalike audiences can’t be edited.
- Existing lookalike audience data will no longer refresh and a lookalike audience will become a static lookalike audience.
- Active campaigns using lookalike audiences will continue to deliver using the static audience.
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What Are the Alternatives to Lookalike Audiences?
As a response to the discontinuation of lookalike audiences, LinkedIn has introduced two alternative targeting tools: Predictive Audiences and Audience Expansion. These tools are designed to maintain the efficiency of digital campaigns while leveraging LinkedIn’s rich data capabilities.
Predictive Audiences
Best for: for contact list, conversion, or Lead Gen Form data sources.
This tool uses LinkedIn’s AI to identify users who are likely to convert, such as leads or customers. It’s done by using machine learning to analyze your data and identify patterns that can be used to predict future behavior.
To create a predictive audience, a minimum of 300 individuals in the selected data source is required:
However, there is a limitation of 30 predictive audiences per ad account, and they cannot be shared between accounts. Notably, campaigns using predictive audiences will not have the option to expand their audience reach.
Learn more about Predictive Audiences here.
Audience Expansion
Best for: for Matched Audiences and LinkedIn attribute targeting, such as by skill or interest.
Alternatively, Audience Expansion targets users who share similar characteristics to your existing audience, such as demographics, job titles or companies. This can be a good way to reach new users who may be interested in your products or services.
This tool can be combined with Matched Audience segments to enhance targeting precision. The performance metrics provided will include data from both the initially targeted group and the expanded audience, although this feature is not available for adaptive ad formats or audiences selected based on predicted behaviors.
Learn more about Audience Expansion here.
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How to Transition from Lookalike Audiences to New Targeting Options
The retirement of lookalike audiences is a significant change for LinkedIn advertisers. However, if you carefully plan your transition and test new options, you can rest assured that your advertising campaigns will continue to be successful.
The transition away from lookalike audiences entails several implications for current advertising campaigns:
- Transition Period: LinkedIn has provided a 30-day grace period during which existing lookalike audiences will remain accessible before being archived.
- API Changes: The change also affects the use of LinkedIn’s API for creating lookalike audiences through third-party marketing platforms. This discontinuation necessitates a shift in strategy for marketers relying on such integrations.
- Campaign Adjustments: Advertisers using lookalike audiences must shift to either predictive audiences or enable audience expansion to maintain a dynamic targeting approach.
If you have been using lookalike audiences, it is important to start planning your transition to new targeting options now. Here are a few tips to do this:
- Identify your goals: What are you hoping to achieve with your advertising campaigns? Once you know your goals, you can choose the targeting options that are most likely to help you achieve them.
- Start small: Don’t try to switch all your campaigns to new targeting options overnight. Start by testing out a few new options on a small scale, and then gradually scale up as you see results.
- Track your results: It is important to track your results so that you can see which targeting options are performing the best. This will help you to make informed decisions about where to allocate your advertising budget.
- Use a mix of targeting options: Don’t rely on just one targeting option. Use a mix of different options to reach a wider audience.
- Keep your audiences up-to-date: Make sure that your audiences are up-to-date with your latest customer data. This will help you to ensure that you are reaching the right people.
- Be patient: It takes time to test and optimize new targeting options. Be patient and don’t give up if you don’t see results immediately.
By following these tips, you can make a smooth transition from lookalike audiences to new targeting options and continue to reach your target audience on LinkedIn.
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Last Word on LinkedIn Lookalike Audiences
LinkedIn’s move reflects a broader trend in digital advertising towards more AI-driven and data-centric approaches. This shift is expected to offer better targeting precision and efficiency, aligning with the evolving needs of modern digital marketing.
The sunsetting of LinkedIn’s lookalike audiences represents both a challenge and an opportunity for advertisers. But by embracing Predictive Audiences and Audience Expansion, marketers can leverage LinkedIn’s powerful data analytics and AI capabilities to reach their desired audiences more effectively.
If you’re ready to drive high-quality lead generation for measurable growth, Single Grain’s LinkedIn Ads experts can help!👇
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