What is a Licensed Custom Audience?

What is a Licensed Custom Audience?

A Licensed Custom Audience refers to a custom audience segment that is created using third-party data, which has been legally obtained and licensed for advertising purposes. This is distinct from standard custom audiences, which use first-party data owned by the advertiser. 

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Data sources for Licensed Custom Audiences are sourced from data providers or brokers who collect and license audience segments (e.g., demographic, behavioral, or interest-based data).


Licensed Custom Audiences must comply with data privacy laws and platform policies, ensuring that the data is collected and shared with proper user consent.


Licensed Custom Audiences allow advertisers to target new potential customers who fit specific criteria but are not already in their own customer database.


Here is an example:

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A car dealership uses a licensed custom audience from a data provider to target people in their area who are in-market for a new vehicle, even if those people have never interacted with the dealership before.

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