Say you've got around 800 past customers, mostly from the last two years, and you want Meta to find more people like them. The default advice is to start with a 1% lookalike because it's the closest match. But with a seed that small, a 1% audience in a mid-sized country can end up pretty narrow, so Meta keeps spending on the same few thousand people while frequency climbs.
I'd rather run a 3% to 5% lookalike next to broad prospecting and let the creative do the filtering, because seed quality matters more than the percentage. Honestly, I'm not sure the tighter match is worth the frequency penalty for most accounts. Has anyone seen a tight lookalike beat a wider one on cost per purchase with a seed that small?