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The really powerful thing about Facebook ads is in your ability to layer targeting options on top of one another, gradually making your audience more and more specific.An extreme (and hilarious) example of the power of hypertargeting was featured in Ad Week last year, when a marketing pro targeted his roommate with ads so specific the poor guy thought he was being cyberstalked.Within each broad subcategory, you can drill down into types of behavior; for example, choosing Buyer Profiles will then let you target DIYers, Fashionistas, Foodies, etc. MORE: All About Facebook's New Ad Relevance Score Certain types of businesses or campaigns are based on selling to people experiencing certain major life events.Facebook shows you how many user profiles you can target in each subcategory, based on their aggregated, multi-sourced offline transaction-based data (or in simpler terms, the number of Facebook users in that category they’ve matched to offline purchasing data). Funeral homes, for example, obviously want to connect with people who are planning a funeral, terminally ill, or lost/losing a loved one.Moving services want to get in front of you if you’ve just purchased a new house or apartment.

These companies have access to trillions of data transactions each year. Facebook advertisers use this data to target audience segments by thousands of different purchasing behaviors.

Then target or exclude the whole list, or just specific subsets of it using other targeting parameters to home in on your ideal Facebook audience. You could target your existing customers who work in a specific job function, make XX amount of money per year, and live in a certain ZIP code with a higher value product offer, if those insights told you these people are more apt to be your affluent customers.

Or, you could target people who visited your company’s blog with offers to demo your product.

They already know your name and were interested enough to visit you, but not to convert.

Facebook Ads targeting that Custom Audience can close the gap.

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