If a business wants to retarget previous customers, what audience type should it use?

Using a Custom Audience is the most effective choice for a business aiming to retarget previous customers. A Custom Audience allows marketers to reach specific groups of users who have already interacted with their business, such as those who have made purchases, visited a website, or engaged with content on social media platforms. This targeting is highly relevant and can significantly improve the chances of conversion, as these audiences are already familiar with the brand and its offerings.

Custom Audiences are created by uploading customer data (like emails or phone numbers), using the Facebook Pixel to track website visitors, or leveraging app activity data. This specificity enables businesses to create tailored advertising strategies that directly appeal to individuals who have already expressed interest in their products or services.

The other audience types serve different purposes: Lookalike Audiences are aimed at finding new customers with similar characteristics to existing ones, Saved Audiences allow for targeting based on predefined demographic, geographic, and interest-based criteria, and Broad Audiences target wider groups without specific interest or demographic focus. While these can be useful in different marketing strategies, they do not provide the focused retargeting needed for previous customers.