Cold traffic consists of an audience that is unfamiliar with your brand.
According to one estimate, Facebook can classify 52,000 traits of each of its users. It uses these data points to slice and dice the world population for advertising purposes.
The traditional method of targeting Facebook Ads is to run some audience research (typically with the Facebook Audience Insights tool) and identify interests that you *think* you can use to target your audience.
This method is suboptimal because you have a better chance of guessing the winning lottery numbers.
A smarter method is to get your audience to self-qualify as potential customers. You can do this by targeting your ads very broadly and qualifying this audience with your ad copy and messaging.
The big idea is that only users who resonate with your ad will take action (e.g. watch a video, interact with your content, visit your website, read your article, etc.).
Your campaign objective is likely to be ‘video views’ or ‘traffic’.
Retarget Audience. Then, once you have qualified your audience with cold ads, you can retarget them with direct response ads. The objective of your direct response ads could be to make a transaction or capture an email address.
Keep in mind that your retarget audience is not necessarily limited to people who interacted with your cold campaign on Facebook. It can also target people who visited your website from other channels, or custom audiences.
Your campaign objective will be conversions (leads or sales).