Facebook creating location-based ad network
Facebook Inc. is looking into ways to incorporate the real-time locations of users into its mobile advertising, according to Bloomberg.
The social media network already uses ZIP codes to target ads to users, but now the company could use data obtained when users say they are at a specific location in status updates to target even more localyzed advertising to them.
For instance, users who say they are downtown on Facebook could see ads related to businesses near them in the downtown area.
“Phones can be location-specific, so you can start to imagine what the product evolution might look like over time, particularly for retailers,” Carolyn Everson, vice president of global marketing solutions for Facebook, said in an interview with Bloomberg.
Everson said Facebook has been testing the idea over the last few months.
Shares of stock in Facebook, which had fallen 19 percent after the company’s record-breaking initial public offering (IPO), gained 2.5 percent after the announcement, but are still below the IPO price. Skepticism over how profitable Facebook’s mobile advertising sales would be in the future was one of the reasons stock prices started to decline after the company went public.
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