Facebook has recently commenced the rollout of a new
technique that mines a user’s conversation and delivers targeted
ads based on the content of these conversations, its estimated this is currently
being employed on approx one percent of all users accounts globally.

Ads targeted to the specific likes and interests of the user
This method analyzes the chat and status updates and finds any words that
relate to a brand name or product in any way.
This method is basically created to deliver ads that are targeted
to the specific likes and interests of Facebook users.

Triggering a facebook ad type based on word associations
Let’s suppose that a person has updated his Facebook status and used the word
Holidays in some context in their update.
This word might then later trigger an ad related to an ad with offers from holiday companies.
This method is expected to be much more accurate and to-the-point for the users but the
chances that it to be misleading or inaccurate are also there. There were about 6 million users
who tested this new system and the results were amazing. Any word that they used became the “target”
for the system and it generated an ad against it.

Good news for companies who are advertising on Facebook
If you use the word “ice-cream” in any of your conversations, an ad related to any of the ice-cream
companies will be shown to you in real-time. This system is expected to generate much more visitors
for the companies who are advertising on Facebook.

Better targeted and in real-time.
It is not the first time that Facebook is delivering targeted ads, but this time,
they are even better targeted and in real-time.
In previous trials a large percentage of Facebook
users reported that they rarely notice ads because they were to heavily involve
in either online chat and other related activities.
Perhaps improvements in the relevancy of these new ads will buck this trend.

Its claimed that click through rates on facebook are as low as 0.051%, these are especially low
compared to industry averages.  Therefore it’s very possible more relevant real time ads
will improve on this performance in the future.