Advertising on social media networks combines current targeting options (such as geotargeting, behavioral targeting, socio-psychographic targeting, etc.), to make detailed target audiences possible. Advertisements are distributed to users based on information gathered from target audience profiles.
Social media advertising optimizes results by using audience profile data to deliver advertisements directly to individual users.
People who use social networking sites give up information about themselves, including their age, gender, interests, and location where it gets stored on the servers of the social media companies. This stored information allows advertisers to deliver individualized ad content to specific target audiences. The advantage for advertisers is that their ads can reach a specific set of audiences who are interested in the product or service. The advantage for users is that they can see ads that are relevant to their interest.