Introduction
As competition on Facebook Ads grows, advertisers must continuously refine their Facebook ads strategy to maintain efficiency and maximise conversions. In 2025, Facebook’s AI-driven tools, privacy regulations, and evolving user behaviour require marketers to rethink their targeting approach.
This guide will cover the best practices and latest strategies to help you improve your Facebook ad targeting for better reach, engagement, and conversions.
1. Understand Facebook’s AI-Powered Targeting Updates
Facebook’s AI capabilities have advanced significantly, with features like Advantage+ Audience automatically refining targeting based on real-time user data.
How to Use Facebook’s AI for Better Targeting:
Enable Advantage+ Audience for automated targeting improvements.
Allow Facebook to optimise ad delivery based on engagement and conversion signals.
Use Advantage+ Shopping Campaigns for eCommerce businesses to enhance performance.
Pro Tip: Monitor performance and refine AI-driven campaigns with manual exclusions for precise targeting.
2. Improve Audience Segmentation with Behavioural Data
Interest-based targeting alone is not enough. In 2025, combining behavioural insights with interest targeting improves ad performance.
Effective Segmentation Strategies:
Engagement-Based Targeting: Retarget users who interacted with your page, videos, or posts.
Purchase Behaviour Targeting: Reach users with past online shopping behaviour.
Demographic & Psychographic Filters: Refine targeting based on job titles, life events, and spending habits.
Pro Tip: Layer multiple behavioural filters to create high-intent audience segments.
3. Optimise Custom & Lookalike Audiences
Custom and Lookalike Audiences remain powerful, but optimising them is crucial.
How to Improve Custom & Lookalike Audiences:
Use Value-Based Lookalikes: Focus on customers who generate the highest revenue.
Test Different Lookalike Percentages: Experiment with 1%, 3%, 5%, and 10% lookalikes.
Create Engagement-Based Lookalikes: Build audiences from video viewers and website visitors.
Pro Tip: Regularly update your source audience for lookalikes to ensure relevance.
4. Implement First-Party Data for Precise Retargeting
With privacy restrictions limiting third-party data, first-party data is now essential.
How to Use First-Party Data Effectively:
Collect emails through lead forms and sync them with Facebook Custom Audiences.
Use Facebook’s Conversion API to track and target offline conversions.
Retarget website visitors based on product page views and cart abandonment.
Pro Tip: Encourage users to log in or register to enhance first-party data collection.
5. Use Predictive Analytics for Smarter Targeting
Predictive analytics helps forecast high-intent users before they convert.
Steps to Implement Predictive Targeting:
Use Meta’s machine learning tools to analyse purchase probability.
Adjust ad budgets based on predictive data to maximise conversion efficiency.
Integrate third-party predictive analytics tools for deeper insights.
Pro Tip: Test predictive audiences against traditional lookalikes to measure effectiveness.
6. Improve Retargeting with Dynamic Ads
Dynamic Ads automatically display personalised products based on user interactions. This feature is really helpful for e-commerce businesses or serice providers with more than one product or service to offer.
How to Optimise Dynamic Ads:
Set up the Facebook Pixel and product catalogue.
Retarget different funnel stages (viewed product, added to cart, abandoned checkout).
Use time-sensitive offers to encourage conversions.
Pro Tip: Segment dynamic ad retargeting by user engagement level for precise targeting.
7. Exclude Irrelevant Audiences for Cost Efficiency
Effective audience exclusions can significantly improve ad ROI.
Key Exclusion Strategies:
Exclude previous buyers to avoid wasted ad spend.
Remove unengaged audiences who failed to interact with past campaigns.
Exclude audience overlaps to prevent ad fatigue and redundancy.
Pro Tip: Regularly analyse audience insights to refine exclusion lists.
8. Leverage Multi-Touch Attribution for Better Targeting Insights
Understanding how users interact across different touchpoints can refine ad targeting.
Multi-Touch Attribution Best Practices:
Use UTM tracking to monitor customer journeys across platforms.
Assign value to different touchpoints (first click, last click, assisted conversion).
Optimise retargeting based on attribution insights.
Pro Tip: Compare attribution models in Facebook Ads Manager to understand audience behaviour.
Conclusion
Improving Facebook ad targeting in 2025 requires a combination of AI-driven tools, behavioural data, and first-party data strategies. By leveraging predictive analytics, optimising lookalike audiences, and refining exclusions, businesses can achieve better ad performance and higher conversions.
If you need expert guidance to create a data-driven Facebook ads strategy and optimise your Facebook ad campaigns, get in touch with us, a digital marketing agency that handles more than £100k per month in ad spend and helping businesses grow digitally! Our team at The True Marketer is here to help you scale your business with precise targeting and data-driven strategies.
Contact us now and let’s take your Facebook Ads to the next level!