How to use Lookalike segments in Google Ads

Welcome to Search Engine Land’s series, Everything you need to know about Google Ads in less than 3 minutes. Every Wednesday, I’m highlighting a different Google Ads feature, and what you need to know to get the best results from it – all in a quick 3-minute read.

Today, we’re discussing Lookalike segments. Lookalikes are a type of audience targeting in Google Ads that allows you to reach new potential customers who share similar characteristics with your existing one.

In this article, i’ll cover:

• What lookalike segments are and how they work
• The difference between lookalike segments and similar segments
• How to create and use lookalike segments effectively
• Best practices for maximizing the performance of your lookalike segments

What are Lookalike segments in Google Ads?

Lookalike segments are a type of audience targeting in Google Ads that lets you expand your reach by finding new users who resemble your existing users.

Google does this by analyzing your seed list (for example, a list of your past purchasers) and identifying common characteristics among those users.

A new audience segment of users who share those same traits is then created, even if they haven’t interacted with your business before.

The differences between Lookalike segments and Similar segments (RIP)

If you’re a seasoned Google Ads pro, you might be thinking, “Wait a minute, didn’t they used to have something called similar segments?”

Yes, indeed. Everything old is new again!

However, lookalike segments are not the same as similar segments were. Google Ads Lookalike segments share more in common with Meta Ads Lookalike audiences than they do with Google Ads’ old Similar segments.

Here’s a quick breakdown of the key differences:

• Availability. Lookalike segments can only be used in Demand Gen campaigns, whereas Similar segments were compatible with Search, Display, Discovery, YouTube, etc.
• Creation. Unlike Similar segments, which were automatically generated for each of your data segments, you need to manually create Lookalike segments – and you can create multiple Lookalikes per seed list, if you want to.
• Geography. Lookalike segments are created for specific countries, whereas Similar segments were geography agnostic.
• Reach. You must choose the desired reach of your Lookalike segment – narrow, balanced, or broad – allowing you to target 2.5%, 5%, or 10% of the people in your chosen location who are most similar to those on your seed list. This was not an option or fact in Similar segments.

How to create and use a Lookalike segment

Ready to find your customer doppelgangers? Here’s how to create a lookalike segment:

• Create a Demand Gen campaign. Lookalike segments can only be created within Demand Gen campaigns. Whether you’re working in an existing campaign or new campaign, you’ll need to go to your ad group, edit your audience targeting, and press “+ New segment” under the Lookalike segment section of Audience Builder.
• Name your lookalike segment. Choose something descriptive, re: your seed list, locations and segment reach, so that you can easily identify it later.
• Choose your seed list. Start with a high-quality seed list or lists. You can use any of your remarketing lists (aka Your data segments) as your seed list, such as:
  • Website visitors
  • App users
  • YouTube users
  • Customer Match lists
  • Google engaged audiences
• Select your target location. Specify the country where you want to find your lookalikes. You can include multiple countries in the same lookalike segment, if you want to.
• Choose your reach. Decide how broad or narrow you want your lookalike audience to be (2.5%, 5%, or 10% reach). When in doubt, I usually like to start with Narrow (2.5%) and see how we do.
• Save. Save your Lookalike, and don’t add any other audience targeting to the ad group. This includes turning off optimize targeting! That way, your Demand Gen ad group will only target users on your Lookalike segment.

Best practices for Lookalike segments success

To get the most out of your lookalike segments in Demand Gen, here are a few tips to consider:

• Use a highly engaged seed list. Instead of just using website visitors, focus on a seed list of highly engaged users, such as purchasers or YouTube subscribers. This gives Google stronger signals to identify the right lookalikes.
• Experiment with different seed lists. Don’t be afraid to test different seed lists to see which ones yield the best results.
• Monitor audience insights. Use Audience Manager to gain valuable insights into your lookalike segments, such as demographics and interests.

Lookalike segments are one way to expand your reach and find new, high-potential customers who are similar to your best existing customers. It isn’t the only way to achieve this in Google Ads, though.

Optimized targeting is a similar audience targeting option that’s also worth testing, as it will find users who are similar to your converters rather than users who are similar to those on a seed list.

The best way to find what works best for your Google Ads account is to test, test, test.