Executive Summary
- • iOS14 killed the data fidelity needed for accurate Lookalike Audiences.
- • Broad Targeting allows Meta's AI to use your Creative as the primary targeting signal.
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Action: Stop restricting the algorithm. Use Broad targeting for 90% of your spend.
The debate is over. In 2025, Broad Targeting (targeting only Age, Gender, and Location) outperforms Lookalike Audiences (LALs) in 90% of ad accounts spending over $5k/month. If you are still relying on 1% LALs, you are fighting the algorithm.
Why Lookalikes Failed (The iOS14 Effect)
Lookalike audiences rely on "Seed Data" (e.g., your email list or pixel events). Since Apple's App Tracking Transparency (ATT) rollout, the match rate of this data has dropped below 40%. This means when you upload a customer list to build a 1% LAL, Meta can only match a fraction of those users. The "Lookalike" is based on incomplete, low-quality data.
"Restricting the audience with Interests or LALs is actively preventing the AI from finding cheaper conversions." — Meta Engineering Team
The Power of Broad Targeting
Broad targeting gives Meta's AI unrestricted access to its entire user base (3 Billion+ users). It uses the data from your Creative and your Pixel to find buyers.
How it works:
- You launch an ad about "Dog Toys."
- Meta shows it to a small sample of users.
- Dog owners click on it.
- Meta's AI learns: "Oh, dog owners like this."
- It finds MORE dog owners, even if they aren't in your "Dog Interest" list.
This is called Creative Targeting. Your ad copy and creative *are* the targeting.
Sources & References
- 1. Meta AI Sandbox. "Generative AI and the Future of Ad Targeting." (2024).
- 2. Common Thread Collective. "The Death of the Lookalike Audience." (Case Study).