How to Improve Facebook Ad Targeting in 2025: Pro Tips Included

With more businesses flocking to Meta's advertising platforms, the competition for attention has never been fiercer. In 2025, achieving success on Facebook and Instagram Ads goes well beyond just ticking boxes or boosting a post. It requires a nuanced, data-driven strategy that adapts to the evolving digital landscape—one shaped by AI advancements, privacy regulations, and increasingly sophisticated consumer behaviour.

If you're a business looking to cut through the noise and maximise every pound of your ad budget, refining your Facebook ad targeting is non-negotiable. This guide outlines the most effective, up-to-date techniques to enhance your reach, increase engagement, and drive better conversions—based on the trends and tools available in 2025.

1. Master Meta's AI-Powered Targeting Features

Meta has significantly improved its AI capabilities in recent years. Tools like Advantage+ Audience and Advantage+ Shopping Campaigns offer automated optimisation, learning from real-time behaviour to improve ad delivery and performance.

How to Use Meta's AI Tools for Smarter Targeting:

• Activate Advantage+ Audience to let Meta automatically adjust targeting in real time.
• Use Advantage+ Shopping Campaigns if you're running an e-commerce business—they're tailored to drive conversions.
• Let Facebook's algorithm optimise your campaigns based on engagement and conversion signals.

2. Enhance Segmentation with Behavioural Targeting

Interest-based targeting still has value, but in 2025, it's simply not enough. Successful advertisers are leaning heavily into behavioural segmentation to create deeper, more meaningful audience segments.

Segmentation Strategies That Work:

• Engagement-Based Retargeting: Target users who watched a certain percentage of your videos, liked your posts, or messaged your page.
• Shopping Behaviour Targeting: Reach users who have a history of online purchases, particularly in your niche.
• Psychographic Filters: Use filters such as lifestyle, values, career stages, and even digital habits.

3. Supercharge Custom & Lookalike Audiences

Custom Audiences and Lookalikes remain powerful when implemented strategically. In 2025, the key lies in continual refinement and experimentation.

How to Optimise These Audiences:

• Use Value-Based Lookalikes to target audiences who resemble your highest-spending customers.
• Test Lookalike Sizes: Don't stick to the usual 1%. Experiment with 3%, 5%, and even 10% to expand your reach while keeping relevance.
• Build Lookalikes from Engagement Metrics: Use data from Facebook video views, page visits, and post interactions.

4. Embrace First-Party Data for Precision

As third-party cookies phase out and privacy concerns rise, the value of first-party data is undeniable. Businesses that take control of their own data pipelines will enjoy more accurate and effective targeting.

Ways to Leverage First-Party Data:

• Collect email addresses through website forms, webinars, and lead magnets—then sync with Facebook.
• Use Meta's Conversion API to track offline events and improve attribution accuracy.
• Retarget users based on specific actions like cart abandonment or product page views.

5. Harness Predictive Analytics to Anticipate Behaviour

Predictive analytics are no longer exclusive to large enterprises. In 2025, even SMEs can use them to forecast purchase behaviour and optimise spend.

Implementing Predictive Targeting:

• Use Meta's internal machine learning to analyse buying likelihood and engagement potential.
• Adjust your budgets and bidding based on forecasted behaviour.
• Integrate tools like Madgicx, Triple Whale or other third-party platforms for even deeper insights.

6. Drive Conversions with Dynamic Product Ads

Dynamic Ads are a game-changer—especially for e-commerce or multi-service providers. They automatically showcase the most relevant product or service to each individual user.

Getting the Most from Dynamic Ads:

• Set up a product catalogue and install the Meta Pixel correctly.
• Retarget different funnel stages: product viewers, cart abandoners, and checkout drop-offs.
• Add urgency with time-limited offers or stock-level messaging.

7. Don't Forget Audience Exclusions

One of the most overlooked tactics in paid advertising is audience exclusion. Excluding certain groups not only saves budget—it improves campaign performance.

Smart Exclusion Examples:

• Exclude users who already purchased to avoid redundancy.
• Remove unengaged users from your retargeting pools.
• Exclude overlapping audiences between campaigns to avoid inflated reach and poor performance.

8. Use Multi-Touch Attribution to Refine Targeting

Attribution in digital marketing is no longer linear. A user might see your ad five times before converting—and across multiple platforms.

Best Practices for Attribution:

• Implement UTM parameters on all outbound links to track the full customer journey.
• Use Facebook Attribution settings to test different models: first-touch, last-touch, and data-driven.
• Analyse how each ad contributes to the final conversion, then adjust strategy accordingly.

Final Thoughts: Stay Proactive, Not Reactive

Facebook's targeting tools will continue evolving—just like your customers. The brands that succeed in 2025 and beyond are those who continuously test, adapt, and innovate.

If you're looking to elevate your Facebook advertising strategy and stop wasting budget on guesswork, we're here to help. At The True Marketer, we manage over £100k in monthly ad spend and support businesses of all sizes in scaling with precision, clarity, and confidence.