Facebook introduces household income targeting based on U.S. ZIP code averages

Facebook has added a new layer of ad targeting with the introduction of household income by U.S. ZIP code. The feature will allow advertisers to target ads to U.S. Facebook users based on the average income levels in the ZIP code in which they say they reside.

Why you should care

The new ad targeting feature will allow marketers to direct ads to people within specific income brackets and customize creative based upon the typical products or perceived needs of people in that income bracket. The feature does not identify specific income ranges, but instead lets advertisers choose income levels based on where the user’s household income falls percentage-wise, i.e. top 5 percent, top 10 percent, top 10 to 25 percent and top 25 to 50 percent.

The new targeting feature was brought to Marketing Land’s attention via a Tweet by Facebook ad expert and president of AKvertise social media marketing agency, Akvile DeFazio.

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.”

More on the news

• Same as all ads, advertisers using 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. The company generated $16.6 billion in ad revenue last quarter, up 30 percent year-over-year.

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About The Author

Amy Gesenhues

Amy Gesenhues was a senior editor for Third Door Media, covering the latest news and updates for Marketing Land, Search Engine Land and MarTech Today. From 2009 to 2012, she was an award-winning syndicated columnist for a number of daily newspapers from New York to Texas. With more than ten years of marketing management experience, she has contributed to a variety of traditional and online publications, including MarketingProfs, SoftwareCEO, and Sales and Marketing Management Magazine. Read more of Amy's articles.