To create an audience of people who signed up for a business newsletter, which audience creation tool should be used?

To create an audience of people who signed up for a business newsletter, the appropriate tool to use is a Custom Audience. This audience type is specifically designed to help advertisers target individuals based on their previous interactions with the business. By integrating data from newsletter sign-ups, such as email addresses, you can create a Custom Audience on platforms like Facebook and Instagram.

The ability to target individuals who have already expressed interest in your business—like signing up for a newsletter—enables more effective retargeting and engagement strategies. This audience already has a level of familiarity with your brand, which typically leads to higher conversion rates compared to targeting a more general audience.

Other audience creation tools, like Saved Audiences or Lookalike Audiences, serve different purposes. Saved Audiences focus on predefined demographics and interests, while Lookalike Audiences are meant to find new users who resemble your existing audience, rather than targeting those who have engaged with your business in the past. Interest Targeting, on the other hand, focuses on audience interests and behaviors rather than specific interactions, which would not be as effective for this purpose. Using a Custom Audience leverages your direct relationships with customers, making it the optimal choice.