There are three types of Facebook audiences that you can create within the Facebook ads manager to target your ideal clients.
If you're used to clicking the boost button – you will be familiar with this type of audience. It's created when we select interests, products or demographics which our ideal clients may be interested in. When we create this audience, we're telling Facebook that we want our ads shown to people who are interested in our audience selctions.
A custom audience is based of the data you have gathered using Facebook's tools. For example, a custom audience can be create from people who visit your website (you need a Facebook pixel to do this) or it could be an audience of the people who follow your Facebook page or Instagram followers.
There's a whole variety of custom audiences that can create. But basically, this is an audience of people who have seen something about your business online at some point in time.
A look-a-like audience is an audience of people who Facebook believes have similar attributes to one of your custom audiences.
These people haven't seen your business online yet, but they have similar interests and attributes as those who have – therefore, are a good audience to show your ads to and hopefully, attract new customers.
For example, you can create a look-a-like audience using your website visitors. Facebook will look at your website visitors and then go find people with similar attributes to your website visitors.
Each of these audiences is used in different ways of your ads strategy. If you'd like to learn more about Facebook advertising, consider enrolling in one of my online courses.