Facebook, Inc. (NASDAQ:FB) ad delivery skews along race and gender lines

Facebook, Inc. (NASDAQ:FB) ad delivery skews along race and gender lines

Facebook, Inc. (NASDAQ:FB) ad delivery skews along race and gender lines

Facebook allows an advertiser to target various, razor-sharp demographics. You can target people who like a specific page or even a particular book. You can target groups of people based on a broad range of categories. But for the research, published yesterday, researchers made no demographic selections. The goal was to determine what Facebook would do with advertisements if it weren’t told a specific demographic to target.

Advertisers may hope that their message reaches the broadest possible demographic when they select a region. For the study, the researchers only chose the certain zip codes as a demographic, rather than age, gender, interests, or anything else. This was the best possible way to ensure that ad delivery was left up to Facebook.

Facebook doesn’t allow you to target based on “race,” but researchers were able to determine the results of the ad delivery by using something called Designated Market Area “as a proxy.” Basically, by using publicly available voter records, they can determine the racial densities of various zip codes or municipalities. The report mentions some cities North Carolina as a specific area studied.

DETERMINING THE RACE OF FACEBOOK USERS BY PROXY

They found two regions which were majority white and two which were majority black. They then tested to see how many of their ads were targeted to people in each area.

When we run ads where we want to examine the ad delivery along racial lines, we run the ads to one audience from the first grouping and the other race’s audience from the second grouping. We then request that Facebook’s Marketing API deliver us results broken down by DMA region. Because we selected DMA regions to be a proxy for race, we can use the results to infer which custom audience they were originally in, allowing us to determine the racial makeup of the audience who saw (and clicked on) the ad.

The researchers developed an even more exciting hypothesis, though, which is irresistible in terms of speculation.

Using an equal group of images that are stereotypically attractive to men and women, they then skewed the pictures so that people wouldn’t be able to see them. Some image formats, like PNG, allow for “alpha” channel to be modified – for the purpose of transparency and other cosmetic changes to an image.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 186.73.

The projected lower bound is: 166.58.

The projected closing price is: 176.65.

Candlesticks

During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 81.9751. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 11 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 65.59. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 39 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 180.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 12 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 2.480 at 176.020. Volume was 19% below average (neutral) and Bollinger Bands were 28% narrower than normal.

Open High Low Close Volume___
176.020 178.000 175.530 176.020 17,847,732

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 168.89 164.86 163.55
Volatility: 24 40 49
Volume: 15,898,906 19,367,516 24,399,786

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FACEBOOK INC A is currently 7.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 2 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH