July 14, 2025
By
Joshua Kennedy
Ryan Kabwato

When Alice launched her new product line, her initial ads brought in plenty of leads, but a few weeks later, those same prospects had gone cold. Open rates dropped, retargeting ads were getting ignored and conversions flatlined. Like many businesses, Alice had no idea how to re-engage those cold leads without starting from scratch (and without blowing her budget).

That’s where Facebook Custom Audiences come in. These powerful tools allow businesses to reconnect with lost prospects, retarget based on specific behaviours and deliver timely, personalised messaging that brings users back into the funnel.

In this blog, we’ll explore how to build smarter Custom Audiences, optimise retargeting campaigns and turn cold leads into paying customers, all while improving your Facebook ad efficiency and return on investment (ROI).

What Are Facebook Custom Audiences?

Facebook Custom Audiences is a powerful targeting feature that allows advertisers to reach users who have already interacted with their brand. Instead of running cold campaigns to people who’ve never heard of you, Custom Audiences let you retarget warm leads, people who have visited your website, engaged with your content, or already exist in your customer database.

Here are the four main types of Custom Audiences:

  • Website Visitors: Built using the Facebook Pixel, this audience includes users who’ve visited your website or specific landing pages. You can target behaviours like "viewed product but didn’t purchase" or "added to cart but didn’t check out."

  • Engagement-Based Audiences: Target users who have interacted with your Facebook or Instagram posts, watched your videos, or engaged with your business page or lead form.

  • Customer List Audiences: Upload your email list, phone numbers, or CRM data to create a matched audience on Facebook. This is great for re-engaging previous buyers or lapsed subscribers.

  • App Activity Audiences: Ideal for businesses with a mobile app, this lets you target users based on in-app actions like purchases, logins, or feature usage.

Why do Custom Audiences matter? Because they drastically improve ad efficiency and ROI. These users already know your brand, so they’re more likely to engage. That means lower CPC, higher conversion rates and better performance across the board.

Audience Building Strategies for High-Intent Retargeting

To get the most out of Custom Audiences, you need to build them strategically, not just lump everyone into a single retargeting group. Start by segmenting audiences based on engagement levels to ensure you’re sending the right message to the right people.

Time-based segmentation is an easy and effective place to start:

  • Users from the last 7 days are still warm, perfect for direct offers.

  • Those from the last 30 or 90 days may need nurturing content or softer CTAs.

  • Beyond 90 days, leads start going cold and may need reintroduction campaigns or exclusions altogether.

Speaking of exclusions, don’t forget to exclude inactive users from your high-intent campaigns. Showing ads to uninterested audiences wastes the budget and lowers engagement metrics.

Here’s a simple example of structured segmentation:

  • Segment 1: Added to cart in the last 7 days – show urgency-based ads.

  • Segment 2: Viewed product pages in the last 30 days but didn’t convert – retargeted with testimonials or reviews.

  • Segment 3: Engaged with your Instagram account in the last 90 days – re-engage with value-led content.

By building layered, high-intent segments, you ensure your retargeting is both relevant and cost-effective, boosting performance without increasing spend.

Retargeting Optimisation: Strategies to Convert Cold Leads

When leads go cold, standard retargeting isn’t enough; you need to reignite interest with precision and relevance. These proven strategies help turn disengaged users back into active prospects:

Dynamic Product Ads for Cart Abandoners

These ads automatically show users the exact products they left behind. Whether they browsed a product or abandoned their cart, dynamic product ads bring them back with a personalised nudge, often leading to higher conversion rates at lower costs.

Exclusive Offers for Re-Engagement

Sometimes, all a cold lead needs is an incentive to return. Offer limited-time discounts, free shipping, or bundle deals specifically for retargeted audiences. Make the message feel exclusive to them: “Still thinking it over? Here’s 10% off to help you decide.”

A/B Testing Ad Formats for Maximum Impact

What works for warm leads may fall flat for cold ones. Test video vs. carousel vs. single image ads to find what resonates best. Use data to refine messaging, creativity and placement; small changes can lead to big improvements in re-engagement rates.

Using Lookalike Audiences from High-Intent Segments

Once you’ve re-engaged part of your cold audience, use those who converted or engaged as a seed for a Lookalike Audience. This lets you scale your reach to new users who resemble your warmest leads, maximising the efficiency of future ad spend.

These tactics allow you to reconnect with cold leads using tailored messaging, tested creative and intelligent audience expansion, keeping your funnel warm without wasting your budget.

Scaling Beyond Retargeting: Expanding Audience Reach

Once you’ve mastered retargeting, the next step is scaling your results and Facebook’s Custom Audience tools give you everything you need.

Create Lookalike Audiences from High-Value Users

Your best customers are a goldmine for growth. Build Lookalike Audiences from your top converters, frequent purchasers, or most engaged users to reach new people with similar behaviours.

Refine Lookalikes Based on Engagement Level

Instead of creating broad Lookalikes from your full email list or website traffic, use high-intent subsets (e.g. users who purchased more than once or spent more than £100). This creates tighter, more qualified Lookalikes that convert better.

Sync Custom Audiences with Email Marketing

Take your strategy cross-platform by syncing your Facebook Custom Audiences with your email CRM (e.g., Mailchimp, Klaviyo). This lets you run coordinated re-engagement campaigns across email and Facebook, ensuring consistent messaging and reinforcing calls to action.

With these strategies, you move from just chasing conversions to building scalable, sustainable audience pipelines, where retargeting fuels growth and Lookalikes expand your reach intelligently.

Case Study: How the Householder Club Reignited Leads with Facebook Custom Audiences

The Householder Club, a membership platform, faced the challenge of reaching new users while re-engaging previous visitors who didn’t initially convert. With Mr Digital’s help, they implemented a Custom Audience and retargeting strategy through Facebook Ads, designed to bring cold leads back into the funnel.

Here’s what we did:

  • Segmented Custom Audiences based on previous site activity and ad engagement.

  • Built targeted re-engagement ads offering a simple value proposition.

  • Layered in Lookalike Audiences based on their most active members to scale lead acquisition.

The results?

  • 306 leads generated at just £8.37 per registration

  • Improved conversion rates from warm audiences

  • Efficient retargeting that minimised cost while maximising reach

This case demonstrates how a structured Custom Audience strategy, combined with retargeting and audience expansion, can reignite cold leads and significantly improve campaign ROI.

Conclusion: Turn Cold Leads Into Conversions with Facebook Custom Audiences

Facebook Custom Audiences aren’t just about retargeting, they’re about rebuilding relevance. By segmenting users based on behaviour, using time-based rules and delivering the right message at the right time, you can transform cold leads into warm prospects and paying customers.

As seen with brands like The Householder Club, strategic audience segmentation and smart retargeting can drive lower CPC, higher engagement and more conversions, without increasing your budget.

If your current campaigns are underperforming or you’re struggling to reconnect with leads, it’s time to rethink your approach. Ready to make your Facebook ads work harder? Contact us today to optimise your custom audience strategy and unlock better ROI from every campaign.

Joshua is a Senior Content Writer with a diverse background in journalism and storytelling. He has a passion for crafting engaging and informative content that resonates with target audiences. Joshua's experience in writing and his understanding of digital marketing ensure content is both captivating and effective in achieving marketing goals.

Ryan is a Client Success Director with a wealth of experience in developing and executing successful digital marketing campaigns. He has worked with renowned brands like Krispy Kreme, honing his skills in various online channels and achieving exceptional results. Ryan's expertise and dedication to client success make him a trusted advisor in the digital marketing landscape.

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