What Are Google Ads Lookalike Audiences and How to Use Them

Google Ads Lookalike Audiences help you reach people who share traits with your best customers. Instead of guessing who might be interested in your product, Google finds users with similar behaviors, interests, and demographics. This expands your reach while keeping your targeting precise. Lookalike audiences are built from your existing data like website visitors, past purchasers, or engaged users. With machine learning, Google identifies patterns and finds new potential customers more likely to convert.

Lookalike Audience vs. Similar Audiences: What’s the Difference?

Back in 2017, Google introduced Similar Audiences to help marketers expand their reach to consumers who behaved like those on existing remarketing lists. This system relied on third-party data, which sometimes traded precision for a wide reach. And while marketers enjoyed broader exposure, they also had limited ways to customize these auto-generated lists. Over time, privacy concerns and third-party cookie limitations reduced the effectiveness of Similar Audiences, and by August 2023, Google fully retired the feature. Nowadays, Google’s Lookalike Audience focuses on first-party data from channels you control, like your CRM systems and website traffic. Google Ads pinpoints individuals who share traits and interests with your best customers. And since the data is collected with consent, your customer targeting aligns with privacy standards. The Lookalike Audience also lets you customize how closely you want to match your seed users. You're no longer stuck relying on cookie-based assumptions, so your ad spend targets people more likely to convert.

How to Create a Google Ads Lookalike Audience

Creating a Lookalike Audience in Google Ads is a straightforward process that allows you to reach new customers similar to your existing ones. Follow these steps to set up and optimize your campaigns for better performance.

1. Access the Audience Manager

First, sign in to your Google Ads account and check you have the right permissions to manage audiences. Click the wrench icon in the top-right corner, choose “Audience Manager” under Shared Library, and you'll land on the main dashboard for building custom segments. Make sure your account is properly set up and linked to any relevant Google services, such as Google Analytics, to fully utilize audience data.

2. Choose Your Data Segment

Select the audience lists you plan to use as your seed. Draw from your CRM or remarketing lists of high-value users like purchasers, frequent site visitors, or active email subscribers. Consider segmenting your seed audience based on specific behaviors or purchase history to create more targeted Lookalike Audiences. The more defined your seed data, the more accurately Google can find users who resemble your desired customer profile. Refer to Google Ads support for extra technical tips.

3. Create the Lookalike Audience

In the Audience Manager, click “Create Audience” and select “Lookalike.” Choose your seed segment, then name your new audience for easy tracking (e.g., “1% Lookalike - 30-Day Purchasers”). Be thoughtful with the naming conventions of your audiences to keep your campaigns organized, especially if you plan to create multiple Lookalike Audiences.

4. Define Your Audience Expansion Level

Google Ads offers Narrow, Balanced, or Broad expansion. Narrow closely mirrors your seed audience for precise targeting, while Broad sacrifices some accuracy for wider reach. Experiment with different expansion levels so that you can find the optimal balance between reach and relevance for your specific marketing goals. Keep in mind that a wider audience might lower your cost per impression but could also reduce conversion rates if the audience is less targeted. Balanced sits in between and is a practical place to begin. You can adjust later based on campaign data.

5. Apply to Demand Gen Campaigns

Go to the campaign or ad group where you want your Lookalike Audience to run. Under “Audiences,” click the blue plus icon and select your newly created segment. Verify that your ad creatives and messaging align with the interests and behaviors of your Lookalike Audience to maximize engagement. Regularly monitor the performance of your campaigns and make necessary adjustments to bids, budgets, or ad content to improve results. Use “Observation” or “Targeting” options to manage ad delivery.

Best Practices for Using Google Ads Lookalike Audience

To maximize the benefits of Google Ads Lookalike Audiences, it's important to implement specific strategies that can help you improve your targeting.

Use High-Quality Seed Data

Prioritize your most engaged and profitable users as your seed. Those who have made purchases or shown strong brand interest produce more accurate lookalike groups. An ideal range is 1,000 to 5,000 seed users. This range is large enough for accuracy but specific enough to target the right people. Remember that the quality of your seed data directly influences the effectiveness of your Lookalike Audiences. By carefully selecting high-value users, you increase the likelihood of reaching new prospects who are genuinely interested in your products or services, and prevent overspending.

Segment Your Data

When you understand consumer behavior, you can focus on specific segments and customize your messaging to address the unique needs and preferences of each group. Divide your audience based on demographics, buying habits, or site behavior to create highly relevant ads. Also, subdivide seed users into smaller groups and tailor campaigns to each one. This improves engagement, boosts conversion rates, and refines return on ad spend. Also, consider using performance creative strategies to make your ads even more relevant.

Test Different Expansion Levels

A Narrow level suits niche offerings where you need precision, while a Broad level goes further if you’re promoting a more general product and need scale. Run tests to see which settings deliver the best results, and keep refining over time. Adjusting expansion levels allows you to find the sweet spot between audience size and relevance. Regular experimentation helps you understand how different settings impact your campaign metrics, and enables you to optimize for both performance and cost-effectiveness.

Combine Lookalike Audience with Other Targeting Methods

You can amplify your campaign's effectiveness by combining the Lookalike Audience with retargeting or custom audience tactics. Retargeting focuses on people who previously showed interest, while the Lookalike Audience finds new, promising leads. When these methods are combined, they create smarter and more cohesive campaigns. Incorporate multiple targeting strategies to ensure that you cover all stages of the customer journey. By reaching out to both new and existing customers, you create a comprehensive marketing approach that maximizes your reach and reinforces your brand message across different channels.

Common Mistakes to Avoid

Although Google Ads Lookalike Audiences can significantly improve your campaigns, it's important to be aware of what could go wrong so you can avoid it:

• Seed audience too small: Relying on a weak or outdated seed audience hampers the accuracy of your lookalike audiences. To achieve better targeting, gather data from multiple channels such as email lists and recent conversions.
• Low-quality data: If your data contains errors or inaccuracies, it leads to flawed lookalike results. Regularly clean your lists to remove duplicates or incorrect information.
• Poor segmentation: Combining all your users into one big pool dilutes your message. Instead, segment your audience based on user traits such as browsing patterns or past purchases.
• Overlapping audiences: Audience overlap can waste advertising spend and muddle performance insights. Use exclusions and combinations to keep your targeting sharp and avoid serving ads to the same users multiple times.
• Lack of testing: Without A/B testing, you may miss opportunities to optimize your campaigns. Try different audience settings, ad creatives, and offers to find what resonates best with your audience.
• No ongoing monitoring: Skipping regular performance checks makes it difficult to pinpoint what's effective. Track key metrics and make adjustments to address engagement or performance issues in your Google Ads campaigns.

Use AI to Enhance Your Google Ads Strategy

The Google Ads Lookalike Audience offers a straightforward way to connect with people who act like your best customers. When you refine these segments, your ads become more relevant, brand trust grows, and you'll often see better conversions. Regularly import new data from your CRM, website, and other channels to keep your seed audiences fresh. Test different expansion levels and creatives to see what resonates best. To simplify and optimize your audience targeting, consider leveraging AI-powered solutions like Pixis. Our intelligent marketing platform can help you refine lookalike audiences, automate bidding, and drive better campaign performance. Explore how AI can enhance your ad strategy, and book a demo today.