AG 401 Lecture Notes - Lecture 4: Numbers Game, Data Mining, The Dilemma
Document Summary
People question effectiveness of ads: the dilemma with this story is that facebook misleads businesses about how effective their advertisement is. Facebook gets most of its money from ads and sells itself to reach a target audience. Also, businesses must decide if its worth it. Once you like a page, you might get an ad related to that which causes the problem of an inaccurate target audience. Facebook can"t guarantee that these ads reach the target audience and ads may not work: a lawsuit was filed by investorvillage. com against facebook. They set their target audience to a specific demographic; targeting people with an income of 250k, college education, and an interest of the stock market. However, people who hit like on anything were liking this ad and. 40% of ad viewers were outside of their target market. Facebook says they can get the preferred target audience at an 89% accuracy rate.
