Thursday, April 20, 2017

Facebook Ad Targeting

Facebook allows very targeted ads based on demographic information. This is great for organizations that know demographics of their users. This could also be an effective way for many small companies and startups to reach only targeted segments and save them from advertising to people they don’t think would buy their product or service. However, targeted advertisement may work for startups who have not figured out their target segment.

Startups, even after initial market research, may need more exploration on their user base after releasing the products. Suppose a startup comes up with a great but expensive fitness product and believes that young athletes would buy it. They target users between ages of 18-24 interested in sports based on their Facebook profile. But because of high price, they don’t sell many. The startup would not be able to find other potential verticals because the ads were not being shown to any other demographics. It’s possible that the high price of product makes more sense to older people with more disposable income. The product may also appeal to people who are not into sports but want to improve their fitness. Demographic profiling promises a lot but business may miss opportunities if they use it as their only marketing strategy on Facebook advertisements.


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