Recently, Facebook began a test that delivers real-time targeted ads, based on user status updates.  The test involves a group of 6 million users, so it represents only a tiny percentage of the Facebook universe right now.  Chances are you won’t be seeing these tests yourself (unless you happen to be selected for the test group), but here is a quick rundown on how it works.

Facebook will deliver immediate, real-time ads to users based on current status updates.  For example, if someone posted “I’m gearing up for some home improvement projects this weekend” they might immediately see an ad or coupon from Home Depot or Lowes.

The idea of using status updates and wall posts for ad targeting isn’t new for Facebook, as they have been doing it for some time now.  But, the real-time twist is brand new.  Up until now, the user data was collected over time and available for later targeting.  However, that approach doesn’t provide the ability to deliver a targeted ad when the user has actually posted something that suggests an immediate need or interest in a specific product or service.  The new real-time targeting capability would overcome that hurdle – if it works.

A big part of the current test is to determine whether or not the algorithm can deliver appropriate ads in a split second, as soon as a user makes a post or update that matches up to an ad in the Facebook system.

The program offers tremendous potential for a wide variety of marketing initiatives, with local advertising being a major component.  If you post “I’m thinking about pizza for dinner tonight”, you might see an immediate ad for your local Domino’s or Pizza Hut with a coupon.

Facebook hasn’t announced how long the test will run or when the feature might be rolled out to a larger audience.

In addition to this test, Facebook also began making some other changes to its ad targeting options, allowing advertisers to utilize both Keyword and Category targeting options.  From reading some other blogs, it appears that different advertisers are seeing varying options (some get just Keyword or just Category targeting options, while others have both options available to them).  But, if both options become broadly available to all advertisers along with the eventual rollout of real-time targeting, Facebook becomes an even more effective advertising platform.

From an affiliate marketing perspective, all these changes should be pretty exciting.  Imagine if you could target a dating ad based not only on demographics and keywords, but also in real time.  Suddenly, when someone posts about their recent breakup and updates their status to “single” they could immediately see your dating ad.  Maybe that timing is too quick for some types of offers, but it would be pretty amazing to have that kind of real-time targeting capability.

Category targeting also provides some definite efficiencies when combined with Keyword targeting.  It could be an easy way to test out new niches or round out your keyword campaigns to pick up residual traffic.

Bottom line, the more targeting options that Facebook provides, the more opportunities for smart marketers to more effectively connect with their audiences.

Filed under: Advertiser Tips, Affiliate Tips by Tom Wozniak
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