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Facebook Ads: How to use Audience Segmentation (Increase ROAS)

#Social Media Marketing
2025-08-07 21:3010 min read

Content Introduction
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This video explains incrementality and audience segmentation in Meta ads. It emphasizes that Meta often takes credit for sales that would have occurred organically. The video outlines how to set up audience segments in Ads Manager, including new audiences, engaged audiences, and existing customers. It shows how a business can identify if they are wasting money burning budget on customers who would have bought anyway and take action such as stop retargetting efforts if the engaged and existing segments are underperforming.

Key Information

  • It's important to dig deeper into Facebook ads performance metrics like ROAS and cost per result because Meta might take credit for sales that would have happened anyway.
  • Understanding incrementality is crucial: determine if a campaign truly caused a sale or just took credit for it, and shift spending towards incremental results.
  • Meta provides the ability to tag and track three audience segments inside campaigns: new audiences, engaged audiences, and existing customers.
  • Analyzing ad spend by audience segment helps diagnose where budget is going and whether it's being wasted on customers who would have bought regardless.
  • Recommendations include website visitors, non-buyers from email lists, catalog viewers, and Facebook & Instagram shop viewers for engaged audiences and website purchases, email list buyers, Facebook, Instagram shop purchases for existing customers.
  • Specific actions to take include setting up custom audiences in Ads Manager, breaking down campaigns by segments, and comparing performance to identify misalignments.

Timeline Analysis

Content Keywords

Facebook Ads Performance

Before celebrating high ROAS and good cost per result in Facebook ads, advertisers should dig deeper to address a common blind spot: Meta often takes credit for sales that would have happened anyway. Actively tracking and using audience segments can prevent wasted ad spend on customers who would have bought without seeing the ad.

Incrementality and Audience Segmentation

Incrementality in Meta ads refers to determining if a campaign caused a sale or just took credit for it. Audience segmentation involves tagging and tracking new, engaged, and existing customer audiences. Understanding these concepts can prevent wasted ad spend.

Audience Segmentation Setup

To set up audience segments, create custom audiences in Ads Manager. Recommended engaged audiences include website visitors, non-buyers from email lists, and catalog viewers from the last 90 days. For existing customers, create segments for website purchases from the last 180 days and email list buyers.

Analyzing Ad Spend with Audience Segments

Analyze ad spend by breaking down campaigns by audience segments (found under demographics in Ads Manager). This helps identify if spend is misaligned with actual results. Adjust engagement windows and retargeting strategies based on segment performance to optimize ad spend and growth.

Related questions&answers

What should you consider before celebrating Facebook ads performance?

Dig deeper into incrementality and audience segmentation, even if ROAS and cost per result look good.

What is the 'big blind spot' that most advertisers and brand owners miss?

Failing to actively track everything or use audience segments, leading to potentially wasted budget on customers who would have bought anyway.

What is incrementality in the context of Meta ads?

Determining whether a campaign caused a sale or just took credit for a sale that would have happened organically.

What are the three types of user audiences that can be tracked inside Meta campaigns?

New audiences, engaged audiences, and existing customers.

What are some recommended engaged audiences for segmentation?

Website visitors from the last 90 days, non-buyers from your email list, catalog viewers from the last 90 days, and Facebook and Instagram shop viewers.

What are the audience segment for existing customers?

website purchases from the last 180 days, email list buyers, Facebook/Instagram shop purchases

How can you diagnose where your ad spend is going in Ads Manager?

By using the 'breakdown' feature often found under 'demographics' and selecting 'audience segments' to see how your budget is distributed.

What does it mean if most of your ad spend is going to existing audiences?

Meta might be primarily retargeting people, suggesting that setting up a separate retargeting campaign might be beneficial.

What if engaged and existing customer segments are underperforming?

Retargeting might not be effective for your business, and you should consider excluding those segments to focus on cold acquisition.

What action should you take after watching this video?

Set up custom audiences, break down your campaigns by segments, and compare performance to identify misalignments between spend and results.

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