Facebook: Location Targeted PPC

In a bid to boost the appeal of Facebook to local businesses in the US, Facebook has introduced a new targeting capability. Internet marketers can now target users with PPC ads based on their ZIP codes. Location has always been one of the many factors that Facebook has at their disposal, but they haven’t used geotargeting to such a level before. There’s a chance that the service could prove very useful for local businesses, and if that is the case, how long until we can expect to be able to target with this kind of precision in the UK? 

The implications for local brands might tempt some smaller businesses; this feature offers more of an incentive to local marketers to integrate their SMO and PPC efforts. Given the amount of time users spend on Facebook—generally in one place for long periods—those in Internet marketing will be able to target users from walking distance. The ads are likely to be extremely relevant and convenient in terms of location alone. Local businesses will be able to use PPC ads to not just alert locals to their presence in general but to alert them to any special offers or discounts that may coerce them into buying locally. The only issue is cost. Will businesses that are limited to smaller areas be able to afford Facebook PPC ads? Will they take a chance given that the level of locality might mean that locals already walk past their businesses daily?

The service would work as an alternative to (or accompaniment) the location-based marketing services offered by the likes of Foursquare and the deal services that are starting to incorporate active locations (Facebook deals, Groupon, etc.). The appeal of targeting is that with so many active users, brands can be more confident that there will be Facebook users in their areas, and these users won’t have to be proactive in searching for opportunistic deals.

One of the potential uses of this kind of locational targeting is political campaigning. As social media is expected to play a large part in elections at any level, local politicians could ensure that everyone in their constituencies is aware of their efforts and policies with campaign ads. ‘Featured stories’ (and most likely a more lax filter displaying user activity) could even prove useful in these instances, as discussion and interest are likely to be stimulated in allowing users to see who their ‘friends’ are supporting and interacting with.