MENLO PARK, CALIFORNIA — Facebook is able to gather data about user shopping habits, both online and offline, in order to serve targeted ads on its platform, according to a new report by Business Insider.<br /><br />The report says that Facebook acquires information about user purchases via its partnerships with retailers.<br /><br />It explains that when a consumer buys a product from a physical or online store, the retailer can retain purchase details and user information such as name, email, or phone number.<br /><br />This could be sent to Facebook if they want to display targeted ads to the consumer.<br /><br />Facebook then matches the information to a user's profile and starts displaying ads from the retail stores directly to the consumer.<br /><br />The company says this allows them to create a custom audience from the acquired information, allowing them to show targeted ads to Facebook users that have shopped at the store.<br /><br />According to Business Insider, retailers such as Macy's and Dick's Sporting Goods are using these advertising techniques to increase sales.<br /><br />The report mentioned that Facebook users have the option of opting out of targeted ads, by clicking the 'Not allowed' option on their Facebook ad setting page.
