What is a lookalike audience in AI marketing?

A lookalike audience in AI marketing is defined as a set of potential customers who share similar characteristics and behaviors with an existing group of customers. This audience is created by analyzing the attributes of your current customers, such as demographics, interests, online behavior, and purchasing patterns, and then identifying new individuals who are likely to exhibit these same traits.

This approach is highly effective because it leverages the information from your current customer base to target individuals who are more likely to convert, thus optimizing advertising efforts and increasing return on investment. By reaching out to those who look like your best customers, marketers can broaden their reach and enhance the effectiveness of their campaigns without having to rely solely on generic targeting strategies.

In contrast, the other options do not accurately define a lookalike audience. One describes close friends, which is unrelated to the targeted demographic analysis used in AI marketing. Another mentions high-spending customers, focusing on a specific segment rather than the broader audience similarity aspect. Lastly, the option concerning previously engaged audiences involves retargeting rather than finding new potential customers based on existing profiles. Therefore, the identification of a potential customer group that mirrors current customers is what makes it a lookalike audience.