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Facebook Targeting - How Much Do They Know About You

Facebook Targeting – How Much Do They Know About You?

Mark Zuckerberg has created an advertising platform that is the most targeted in the world, the type of targeting that advertisers could only dream about before Facebook.

How Does Facebook Know So Much?

Facebook stores all the information users post on the website. They know if you’re newly engaged, recently bought a Harley motorcycle, or going on a trip to California. They store that information and then it becomes available to advertisers for targeting options. They also work with a few big data companies on providing further targeting options to their advertisers.

Maybe you’ve noticed that after posting about going to the gym, you’re suddenly being served ads for nutritional supplements. If you’ve hit “Like” on a page for the Minnesota Twins, you can guess that soon after you’ll be seeing advertising related to baseball.

Advertisers and Facebook like to think of these ads as enhancing the user experience because the user is only seeing ads relevant to their interests. We advertisers strive to create ads that pique the interest of our targeted audience.

So How Deep Does The Targeting Get?

Very deep.

Let’s say I’m a wedding photographer in Fargo/Moorhead. I would create an ad targeting users who are recently engaged, have an income above $50,000, and live within 30 miles of Fargo. Using that targeting you would never have the “spill-over” effect of normal advertising platforms.

A radio advertisement could target the Fargo/Moorhead area, but you’re casting a wider net because there’s no way to segment within that geographical space.

Let’s say I sell boats. I would target users who live within 100 miles of Detroit Lakes, MN, make $50,000 a year, enjoy fishing, and like Lund Boats (or any other boat brand).

No matter what your business, you can find your exact target market on Facebook and advertise only to them. It’s a powerful tool for any small business owner looking for their target market.

I prefer to make multiple campaigns based on a multiple targeting layers and creating ads tailored specifically to each target market. In the previous example of selling boats, I would create separate campaigns based on brands users have engaged with and tailor ad-copy to target that brand.

Well, It’s Got To Be Expensive, Right?

Not really. You pay only when a user clicks on your ad. For many advertisers, $10 a day is sufficient ad-spend. If you’re running a nation-wide campaign aimed at relatively generic targeting, it could get expensive. For most small business owners, $1,000/month will more than get you by.

Paying by user click isn’t the only pricing option on Facebook. Advertisers can also pay either by CPM (1,000 impressions) or for a specific action the user takes on the advertisement, such as sharing, commenting or liking.

That makes it cheaper than most other forms of advertising, but unlike billboards, radio and television, there is no spill-over effect of targeting users who aren’t interested in your product. When price and the targeting options are considered, it’s a no-brainer to advertise on Facebook.

My only question is, who are you going to target?

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