Audiences and Targeting
Custom, lookalike, and saved audiences.
Audiences and Targeting is a free Digital Marketing Academy lesson on CoddyKit — lesson 2 of 4. You can read the complete lesson below for free — then practise it hands-on in the browser with a built-in code editor and a 24/7 AI tutor. It is part of the Digital Marketing Academy learning path, one of 4 lessons in the course, and your progress syncs across the web and the CoddyKit app.
Three Audience Types
Meta gives you three building blocks for targeting:
- Core (Saved) Audiences — built from demographics, interests, behaviors
- Custom Audiences — people who already interacted with you
- Lookalike Audiences — new people who resemble a source
Strong accounts blend all three across the funnel.
Core Audience Building Blocks
A Core Audience is defined by location, age, gender, languages, and detailed targeting (interests + behaviors).
Use AND / OR logic carefully: stacking interests with OR widens reach; the "Narrow Audience" option requires people to match a second condition (AND).
Location: United States
Age: 25-45
Interests (OR): Yoga, Pilates, Wellness
Narrow (AND must also match): Online shoppersDetailed Targeting Expansion
Advantage detailed targeting lets Meta show ads beyond your selected interests when it predicts better results.
For conversion campaigns this is often left on, because the algorithm finds buyers your manual interests miss. For strict niche or compliance cases, you may want tighter control.
Custom Audiences From Your Data
Custom Audiences retarget people who already know you. Common sources:
- Website visitors (via pixel)
- Customer list (email/phone, hashed and uploaded)
- App activity
- Engagement (video viewers, lead forms, IG/FB profile)
These typically deliver the cheapest conversions.
Custom Audience: "Add to Cart - 14 days, no Purchase"
Source: Website (Pixel)
Include: AddToCart in last 14 days
Exclude: Purchase in last 14 daysEngagement Custom Audiences
Even without a website you can retarget engagement on Meta-owned surfaces.
Examples: people who watched 50%+ of a video, opened an Instant Form, visited your Instagram profile, or messaged your Page in the last 365 days.
These warm audiences are great for moving people from awareness to consideration.
Source: Instagram account
Action: Anyone who engaged
Retention: last 90 days
Use: mid-funnel consideration adsLookalike Audiences
A Lookalike Audience finds new people similar to a source (a Custom Audience). You pick a source and a size from 1% to 10% of the country's population.
A 1% lookalike is the closest match (best quality, smaller reach); higher percentages widen reach but dilute similarity.
Source: "Purchasers - last 180 days" (best source = buyers)
Country: United States
Size: 1% (~2.5M people)
Tip: a 2% LAL = top 2%, includes the 1%Picking a Good Lookalike Source
Lookalike quality depends entirely on its source. Aim for a clean, high-value seed list.
- Best: recent purchasers, high-LTV customers
- Good: leads, add-to-carts
- Weak: all website traffic (noisy)
Sources with 1,000+ people generally produce stronger lookalikes.
Exclusions Prevent Waste
Exclusions stop you from paying to reach the wrong people.
Common moves: exclude existing customers from acquisition campaigns, and exclude recent purchasers from retargeting so you do not chase someone who just bought.
Exclusions also reduce audience overlap between your own ad sets.
Prospecting Ad Set:
Include: Lookalike 1%
Exclude: All Purchasers (180d)
Exclude: Website visitors (30d)Audience Overlap
When two ad sets target overlapping people, they can bid against each other, raising costs (auction overlap).
Use the Audience Overlap tool in Audiences to check. If overlap is high (e.g. 30%+), consolidate the ad sets or add exclusions.
Broad vs. Narrow Targeting
Modern Meta optimization often favors broad targeting (minimal interests, let the algorithm + pixel find buyers) for conversion campaigns with good signal.
Narrow targeting still helps for tiny niches, regulated products, or when data is sparse. Test both; let cost-per-result decide, not opinion.
Broad test: Age 18-65, no interests, optimize Purchase
Narrow test: 3 stacked interests, same creative
Winner = lowest cost per purchase after learningLayering Audiences Across the Funnel
Strong accounts assign audiences to funnel stages:
- Top (cold): Lookalikes and broad Core audiences
- Middle (warm): engagement and video-viewer Custom Audiences
- Bottom (hot): website visitors and add-to-cart retargeting
Exclude lower stages from upper ones so each message reaches the right temperature.
TOF: Lookalike 1% (exclude all engagers)
MOF: Video 50% viewers + IG engagers
BOF: AddToCart 14d, exclude PurchasersQuick Check
Check your grasp of lookalike sizing.
Recap
You can now build the three audience types: Core for cold reach, Custom for retargeting your own data, and Lookalikes to scale from a quality seed.
Use exclusions to avoid waste, watch overlap, and let cost-per-result decide broad vs. narrow. Next: turning these audiences into compelling creatives and choosing where they appear.
Frequently asked questions
Is the “Audiences and Targeting” lesson free?
Yes — the full text of “Audiences and Targeting” is free to read here on the web, and the Digital Marketing Academy course includes 4 lessons in total. To practise it interactively (a built-in code editor and a 24/7 AI tutor) and unlock the rest of the Digital Marketing Academy course, upgrade to CoddyKit PRO.
What will I learn in “Audiences and Targeting”?
Custom, lookalike, and saved audiences. You practise Digital Marketing Academy with hands-on code you run directly in the browser, and a 24/7 AI tutor answers your questions as you work through the lesson.
Do I need any experience to start Digital Marketing Academy?
No prior experience is required. Digital Marketing Academy on CoddyKit is structured for beginners through advanced learners; this is — lesson 2 of 4, so you can start here or from the beginning and move at your own pace.
How long does the “Audiences and Targeting” lesson take?
Most CoddyKit lessons take about 5–10 minutes. Each one is bite-sized and interactive, so you make steady progress and pick up exactly where you left off across the web and the app.
Can I write and run code in this Digital Marketing Academy lesson?
Yes. Every Digital Marketing Academy lesson includes a built-in code editor, so you write and run real code right in your browser and get instant AI feedback — no local setup required.
All lessons in this course
- Ads Manager Overview
- Audiences and Targeting
- Creatives and Placements
- Budgets and Optimization