Facebook targets ads based on actual user purchases

The social networking company has tied up with data companies to serve ads

Facebook has launched a program that will target advertisements based on what users have actually purchased, but said that advertisers will not have direct access to information that identifies the user.

"To date, advertisers have been able to show ads to people based on their expressed interests on Facebook," the company said on Wednesday in a blog post. With the introduction of new "partner categories," advertisers can also show ads to users on Facebook "based on the products and brands they buy across both desktop and mobile".

The partner categories at launch include 500 distinct groups, ranging from people who are heavy buyers of children's cereals to people who are likely to buy an entry, economy or compact vehicle in the next 180 days. The categories can be fine-tuned to, for example, let a local car dealership show ads to people living near their dealership who are likely in the market for a new car.

Partner categories use data from third parties including Acxiom, Datalogix and Epsilon. These companies collect data from a large number of user purchases both online and offline. Datalogix, for example, claims to have data on almost every US. household and more than US$1 trillion in consumer transactions.

No personal information is shared between Facebook, third parties or advertisers, Facebook said. "Partner categories work the same way all targeting on Facebook works. The advertiser only knows the size of the audience and can't access any information about individuals included in a category," Facebook added.

The company's revenue from advertising was US$1.33 billion in the fourth quarter of last year, which was 84 per cent of total revenue for the quarter, and a 41 per cent increase from the same quarter in the previous year. The company has been trying to offer new services to advertisers, including recently testing targeted advertisements on users' News Feeds on Facebook, based on their browsing history.

Facebook, which has been frequently under scrutiny for possible invasion of user privacy, emphasised in a separate post that the privacy of users would not be compromised by the new partner categories program. It said it set up the program "in a way that people who use Facebook can understand how this advertising works and have the ability to control it."

When he sees a Facebook advertisement, a user can click on "About this Ad" from a drop-down menu, and identify the company responsible for including him in the audience for the ad. The user can also choose to opt-out from the ad or any ads from the Facebook partner. Partners have also agreed to provide on the "About this Ad" page a comprehensive opt-out of future targeting by that company, not only on one website, but across the Web, Facebook said.

Follow CMO on Twitter: @CMOAustralia or take part in the CMO Australia conversion on LinkedIn: CMO Australia.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

looking for the best quality of SMM Panel ( Social Media Marketing Panel ) is a website where People Buy Social Media Services Such as Fa...

Kavin kyzal

How to manage social media during Covid-19

Read more

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Blog Posts

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Winning means losing in the game of customer retention

At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.

Linda O'Grady

Data Strategy Partner & Business Partner, CX Lavender

Sign in