Facebook Ads have never stood still. Over the last decade, advertisers have seen everything from broad demographic targeting to hyper-specific interest groups. For a long time, the formula was simple: choose an audience segment, add a few interests, and the ads would do the heavy lifting.
But the game has changed. Privacy updates, user choices, and platform restrictions are forcing marketers to rethink how they build audiences. The spotlight has moved from interest-based targeting to identity-based targeting. And if you’re running ads today, this isn’t just a technical shift — it’s a strategic one.
So let’s break it down: why interest-based targeting is slipping, what identity-based targeting offers, and how you can make the transition without losing your edge.
Why Interest-Based Targeting Is Losing Its Edge
Interest-based targeting was once a marketer’s dream. Select “travel lovers” or “yoga enthusiasts,” and instantly, you had a ready-made audience. The categories felt endless.
But that landscape is shrinking.
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Privacy laws are stricter. Governments worldwide are tightening rules on how platforms collect and share user data.
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Consumers are more protective. iOS updates and browser restrictions have given users more control over how they’re tracked.
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Platforms are cautious. Facebook (now Meta) has removed thousands of sensitive targeting categories to reduce risk.
The end result is clear: the audiences left inside Ads Manager are broader, less defined, and often far less effective. Marketers who once relied on precise “interest buckets” are now watching performance dip — higher CPMs, weaker click-through rates, and wasted ad spend.
With interest categories shrinking every year, many advertisers are still figuring out how to adapt — our breakdown of Facebook Ads Targeting Updates: How To Adapt in 2025 goes deeper into the platform’s latest changes.
This raises a hard question: if interest groups are losing their sharpness, what’s the alternative?
What Identity-Based Targeting Really Means
Identity-based targeting is exactly what it sounds like. Instead of guessing what people are into, you use verifiable data about who they are. It relies on first-party data — the information you already own and control.
This can include:
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Customer email lists.
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Phone numbers gathered from purchases or sign-ups.
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CRM records segmented by activity level.
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Loyalty program memberships.
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Past website visitors tracked through your pixel.
Imagine running a campaign for a new skincare product. With interest targeting, you’d select “beauty enthusiasts” and hope Facebook served your ads to the right subset. With identity-based targeting, you upload a list of people who actually bought from you before — maybe your repeat customers or high-value buyers. That’s not guesswork. That’s precision.
Identity-based targeting shifts the mindset. You’re no longer renting Facebook’s audience categories. You’re building and controlling your own.
If you’re not sure how to build or segment your data from scratch, check out this guide on how to define a target audience for marketing.
The Benefits Advertisers Can Expect
Why is this shift such a big deal? Because identity-based targeting unlocks advantages interest groups simply can’t deliver.
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Higher accuracy — You’re speaking to verified customers, not vague lookalikes inside a category.
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Personalized messaging — Ads can connect with real purchase behavior. Think “Back for more?” instead of generic “Shop now.”
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Better use of budget — You avoid wasting money on people who will never buy.
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Retention and loyalty — It’s cheaper to re-engage a past buyer than to win a new one. Identity-based targeting makes that easy.
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Strategic growth — Clean first-party data doesn’t just power Facebook ads. It helps email, SMS, and other channels work better too.
When advertisers adopt identity-based targeting, they stop crossing their fingers and start running campaigns with confidence.
The Challenges Marketers Should Expect
Of course, no tool is perfect. Identity-based targeting comes with challenges that marketers must prepare for.
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Data collection. Not every brand has a solid database. Small businesses often struggle to build or maintain accurate lists.
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Data management. Cleaning and segmenting information takes time. A messy database can ruin even the smartest campaign.
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Privacy compliance. GDPR, CCPA, and other laws demand clear consent. Mishandling data can harm your reputation — and result in penalties.
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Smaller audience sizes. Your customer list may feel tiny compared to Facebook’s giant interest pools. That can make scaling harder, especially in industries that need high volume.
But here’s the truth: overcoming these challenges is part of building a long-term advantage. Brands that take data seriously now will leave competitors behind later.
How to Make the Shift: Practical Tips
So how do you actually move from interest-based to identity-based targeting? Here’s a step-by-step approach:
1. Audit Your Data
Start with what you have. Look at your CRM, email lists, and past buyers. Remove duplicates. Fix formatting issues. Verify email accuracy. The cleaner your data, the stronger your campaigns.
2. Segment Customers Smartly
Not all customers are equal. Divide them into meaningful groups:
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High-value repeat buyers.
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One-time purchasers.
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Customers who haven’t engaged in 6 months.
Each group deserves a tailored message. Don’t treat them all the same.
3. Blend Interest and Identity
Identity-based targeting doesn’t mean abandoning interests altogether. Use a hybrid strategy. Upload your customer lists and then build lookalike audiences. Layer on broad interests to test new opportunities. Balance is key.
4. Target Followers of Groups and Pages
There’s a middle ground between broad interests and pure identity. You can target people who follow specific Facebook groups or pages — communities tied to your niche.
For example, a local fitness studio could run ads to people who follow neighborhood gyms or yoga communities. An e-commerce brand could target followers of well-known lifestyle pages. This approach gives you a relevant, self-selected audience that often performs better than generic interest pools.
For a deeper dive into this tactic, check out our guide on how to build your target audience from a Facebook group.
5. Build Lookalike Audiences
This is where identity-based targeting scales. Take your best-performing customer list — say your top 5,000 buyers — and create a lookalike audience. Facebook finds people with similar traits, behaviors, and patterns. You reach fresh users without losing the focus that comes from identity data.
6. Keep Updating Your Lists
Your CRM isn’t static. New buyers arrive, inactive leads drop off. Make it a habit to refresh your uploads. A stale list will weaken your targeting over time.
Looking Ahead
The shift from interest-based to identity-based targeting isn’t just another platform update. It’s a deeper change in how digital advertising works. Interest pools are shrinking, while first-party data is becoming the lifeblood of smart campaigns.
Marketers who cling to the old methods will struggle. They’ll spend more and get less. But those who invest in data collection, segmentation, identity-driven targeting — and even hybrid tactics like targeting page or group followers — will have an edge that only grows stronger over time.
The takeaway is simple: ads built on assumptions are fading. Ads built on real identities are the future.
So, ask yourself — which side of that future are you building for?
