Advertisements are playing a pivotal role in terms of marketing for every company. Advertisements can attract their target customers and can create brand awareness for their potential customers.
Facebook had put a lot of effort in display ads since it generates a great amount of income. Facebook has taken a huge share of the display ad market in the U.S. which has been estimated as high as 25% (7/24 Wallst, 2013). Recently, Facebook released a new ad policy and the goal is to “deliver the right content to the right people at the right time” just like their News Feeds (7/24 Wallst, 2013). Facebook is trying to understand people’s different customer behaviors better in order to select the right ad that might interest their customers. In the distributions of ads, Facebook is currently attempt to deliver the ads and to reach the right audiences. For instance, if a marketer of a fashion retailer tells Facebook that they mainly target girl ages from 18-30 in a specific region, Facebook will show this particular ad for this group of people. If some people always hide the same type of ads such as fashion or business ads, Facebook might eliminate these displayed ads that an individual hided before. However, if an individual always likes for the type of ads they are interested in, Facebook will learn which type of ads can be more relevant to this individual. According the author of this report believed “…, if advertising is more relevant, users will be more accepting”.
I personally think that improving on the relevance of the ads can lead to an increase in the sales of those companies display their ads on Facebook. The new policy can help these companies deliver their messages more efficiently and help their marketing strategic planning be more successful.
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