Facebook: How Targeted Advertising Works
Marketers understand that advertising on Facebook is necessary to increase engagement on the social platform. Targeted advertising has been largely successful for brands who have understood how to use it. The most successful ad campaigns can be attributed to a better understanding of the brand’s audience.
Facebook ads are known to be tailored to their user’s interests but there has always been something intuitive about their targeted advertising. It isn’t difficult for marketers to find details of your life on Facebook, especially since it’s a platform where most people share their most intimate moments with friends, family and colleagues. We already know ads shown to Facebook users are determined by settings such as location, gender, income etc. but there have been other elements working that you may have not known about.
According to Slate, Facebook is using information from some other interactions on the web such as credit reports, public records, surveys, contests and more. Additionally, Facebook can gather information from any website that has a “share” or “like” button. You can see the exact list of 98 personal data points that Facebook uses for targeted advertising on the Washington Post.
What does this mean for marketers?
Although having access to all of this information can seem a bit ‘creepy,’ it is making internet advertising better. In utilizing personal information users share every day, advertisers are able to generate ads that are more relevant – making these ads less of a nuisance. How is that possible? Consider your best friend’s birthday is coming up. You are more likely to see ads on Facebook that are related to your favorite clothing brands, tickets to your favorite concerts and more.
Our advice? Learn how to leverage the power of Facebook advertising and consider investing. According to the Barron’s report cited by Slate.com, Facebook ad growth is expected increase by at least 20%. Those who use Facebook advertising can see up a 50% increase in click through rate (CTR) in posts versus those who do not.
Image Credit: Instagram @Facebook