A big part of decreasing your acquisition costs depends on showing the right message (ad) to the right people (audience.) Obviously, if you are showing a message to someone who doesn’t care at all about your company, she will not take any action.

Since channels are charging you based on impressions (not based on results), showing ads to the wrong people is a sunk cost.

Facebook has become extremely efficient at delivering ads to people who care, but we are not yet to the point where every single user seeing your ad will click/tap on it.

Which means there is room for optimization. You can improve the quality of your audience by excluding those people who don’t care about your brand (and thus, reducing your CPA.)

New marketing gurus will tell you that psychographics is more important than demographics, but if you are selling a new recruiting platform, obviously a toddler won’t buy it. If you are entering the US market, then you don’t care about users in Argentina.

Before you go ahead and work on your audience, it will pay off that you spend some time with Facebook’s Audience Insights tool. It will give you a better idea about the audience you want to reach.

California managers over 27 years old, are mainly college graduated, married, live in San Francisco or LA, they like posts as much they click on ads, and use iPhones.

If you are a gaming company it doesn’t mean you don’t need to target Android users, it means they are a smaller market, and it will be more expensive to reach them.


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Leo Celis