Oct 1, 2013 (Tue): Facebook currently is working on some updates to the ads algorithm to improve the relevance and quality of the ads people see, in an effort to meet its goal of New Feed – to deliver the right content to the right people at the right time.
They are listening to feedback from Facebook users and marketers in deciding which ad to show to which groups of people through knowing how often people report or hide an ad in the news feed.
For example, if someone always hides ads for electronics, Facebook will reduce the number of those types of ads that they show to them and vice versa.
The marketers will tell Facebook which people they think will be interested in their ad. For example, a restaurant might tell Facebook to show an ad to people living in the same city aged 25 to 45 as well as how much they are willing to pay to reach a specific audience.