At 2.38 billion monthly active users and counting, Facebook is the largest social network worldwide (1). Thanks to targeting abilities that are second to none, Facebook’s platform has allowed advertisers to serve ads to potential customers based on where they live and their unique interests.
Since the 2016 election, privacy, transparency, and a fair and just experience have come to the forefront of Facebook’s focus for building a better social media platform, bringing some changes to their targeting metrics.
Since then, Facebook has been zeroing in on how it can help deliver ads while eradicating bias and discrimination. From real estate to banking to car buying, businesses across industries will see changes to how the ad targeting platform operates to support this goal.
After the most recent update, we have more concrete answers as to what Facebook’s final changes entail and what options dealers have to continue running effective campaigns. If you missed the Stream webinar held by VP of Digital Marketing, Sarah Throne, watch the webinar recording now!
Facebook Targeting Changes Released June of 2019
The progress report released on June 30, 2019 (2) states that advertisers running U.S. housing, employment, and credit ads will experience changes to Facebook’s targeting system, including:
- Reduced Demographic Targeting: Advertisers can expect a much smaller set of targeting categories to choose from. More specifically, they’re no longer allowed to target ads by age, gender, or zip code.
- Radius Targeting Instead of Geographic Targeting: With the removal of zip-code targeting, a 15-mile minimum radius targeting function will be the stand-in.
- Lookalike Audience Replaced with Special Ad Audience: Lookalike audiences were used to reach potential customers who were most similar to your best customers. Special Ad Audience will replace the Lookalike feature and won’t consider age, zip codes, or other demographic-specific information when creating a prospective customer list. We’re hoping to get more specific information about this soon!
So, how will this impact the auto industry? The nature of vehicle leasing and financing means that dealers are advertising large-scale purchases with loan terms greater than 90 days—these are seen as “credit ads” by Facebook. This category spans from mortgages to student loans to you guessed it: Car loans.
Watch the Webinar Replay for All of the Details!
With targeting updates announced, Facebook’s systematic rollout of its new, more restrictive targeting platform will begin soon. To make sure your business is ready and to learn more about what’s next for Facebook, watch Stream’s free webinar replay today!
Sources:
- 1 Number of monthly active Facebook users worldwide
- Update on Facebook’s Civil Rights Audit. December 2018
- 2 Facebook’s Civil Rights Audit – Progress Report. June 30, 2019
- Discrimination through optimization: How Facebook’s ad delivery can lead to skewed outcomes
- Doing More to Protect Against Discrimination in Housing, Employment and Credit Advertising
- Housing, Employment and Credit Ad Updates
- A Second Update on Our Civil Rights Audit
- March 2018 FHA Charging Document