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BizReport : Advertising archives : August 17, 2011

Zip code targeting boosts Facebook ad CTRs two-fold

A company that had early access to Facebook's zip code ad targeting feature has released data showing that click-through rates were almost twice as high as that of ads targeted at city level.

by Helen Leggatt

Increasing the relevancy of ads has long been known to increase click-through rates and Facebook's new option to target by 5-digit US zip codes has done just that, reports social advertising technology firm Blinq Media.

According to Blinq's CTO Luis Caballero the number of times a Facebook user sees zip code targeted ads is greater than others. While ads targeted by other means are seen once or twice by users, zip code targeted ads reached three or four incidents.

Caballero told Inside Facebook that adopting a "methodical and scientific" approach to zip code targeting, i.e. targeting by city and honing in on the most responsive zip codes, would yield the best results.

"These findings indicate that zip code targeting could make Facebook Ads significantly more valuable to local advertisers, which could draw in more local and small businesses and drive Facebook's revenues," says Inside Facebook's Josh Constine.

Tags: ad targeting, Facebook, online advertising, social media, social network, zip code

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