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clipped from mashable.com

Facebook Flyers 2.0: The Promise and Pitfalls of Social Networking Ads

Facebook has made some big changes to their “Flyers” advertising format that turns it into a much more advanced advertising system. Advertisers can now target users based on specific data from their profiles, such as interests, age, education, and relationship status. Much like AdWords, the advertiser sets a maximum price per click and a daily budget. Previously, Flyer ads were limited to specific universities or networks, and were charged on a CPM (cost per thousand impressions) basis.

Whereas Google, Yahoo, and Microsoft use algorithms to match ads to content, Facebook has the ability to do exact matching on ads to keywords a user has entered in their profile. Things like targetting ads to single males, age 18-30, that play golf, in the Washington DC area, are now possible.
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