A new layer of ad targeting is being added by Facebook with the introduction of household income by U.S. ZIP code. With this feature, advertisers will be able to target ads to US Facebook users based on the average income levels in the ZIP code in which they say they live.
This new ad targeting feature will let marketers direct ads towards people within particular income brackets and customize creative based on the typical products or perceived needs of people in that income bracket. This feature doesn’t identify specific income ranges, but lets advertisers choose income levels based on where they user’s household income falls percentage-wise.
Facebook’s ad targeting interface notes that its income level data is based on public information. The company also clarifies on its “Household income by ZIP code” info page that it worked to build these segments, “…in a way that considers your needs while helping protect people’s privacy and guard against potential misuse.”
Advertisers who use the household income targeting must comply with Facebook’s non-discrimination policy.
When doing a filter for the top 10 percent of household income by ZIP code, the pool of potential users to target was 18,232,357.
On January 31, Facebook released its earnings report for the fourth quarter of 2018. Facebook has generated $16.6 billion in ad revenue last quarter, which is up 30 percent year-over-year.