Facebook?s Revenue Growth Strategy: Ad Targeting By In-App Behavior

Facebook has an answer to those wondering how it will justify its IPO price and keep revenues growing as it saturates key markets: a new behavioral ad targeting system. Facebook has?been quietly rolling out the beta of "Open Graph action spec targeting"?which allows advertisers to target users by what they listen to, where they travel, what they buy, and other in-app activity. These behaviors can more accurately denote conversion potential than a user's biography or interests, That means Open Graph action spec ad targeting could turn finding a needle in a haystack into shooting fish in a barrel. The targeting options could?improve the ROI of Facebook ads, and thereby?attract a new class of advertisers, get existing ones to spend more, and pull in dollars from search, display, and offline channels.

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