Facebook Launches New Household Income By Zip Code Targeting Options
Back in October, Facebook removed over 5,000 targeting options. This came shortly after a complaint against Facebook from the U.S. Department of Housing and Urban Development (HUD). The complaint claimed that these targeting options could be misused for discriminatory targeting. Now, they’ve brought back household income targeting options in the U.S. This time, they’re based on the zip code’s average household income. Get all the details below.
Facebook used publicly available data of average household income by US ZIP code to build these audiences. However, these audiences will not be available for housing, employment or credit ads. And, are only to be used for inclusion targeting for other categories.
They’ve broken down the options into four segments: Top 5% of ZIP codes, top 10% of ZIP codes, top 10-25% of ZIP codes, and top 25-50% of ZIP codes.
With this in mind, the top 10% audience represents the top 10% of US ZIP codes when ordered by average household income. It does not mean the top 10% of households in the US.
Where To Find It
You can find these four segments in the Detailed Targeting field under Demographics > Financial > Income.
This new ad targeting feature allows marketers to direct ads to those in certain income brackets. Allowing you to customize your ad creative to target the perceived needs of those in that income range.
To illustrate, here is an example from Facebook. “For example, a national car manufacturer might be launching a new car model that will make it the most expensive of its category. If the average car is bought by the majority of the population, then this indicates to the car manufacturer that they should consider a more tailored audience that is different from the majority of car owners. This advertiser might launch a nation-wide campaign targeting the top average household percentile and include a Custom Audience of people who recently visited their dealerships in order to raise awareness among prospective buyers.”
To Wrap It Up
Although this information isn’t as precise as it was previously, this is a big step to reintroducing some of the targeting options previously offered. We believe that there will be updates to come as they figure out ways to collect data that comply with their non-discrimination policy.
Will you use this targeting option for your ads? Comment on our post and let us know!