The new feature from Facebook has been revealed as being called Partner Categories and will see Facebook working with consumer data companies Acxiom, DataLogix and Epsilon.
The data companies specialise in knowing everything they possibly can about a person including your income, personal information, social security numbers and what you have bought both offline and online.
By combining the knowledge that Facebook already holds on users with this extra data Facebook hope to be able to tailor adverts on the social media site to fit the needs of every user individually.
The data will be able to spot trends in spending habits and buying habits such as people who buy lots of organic food, people who buy lots of items for children and those who buy lots of music online and offline.
In the past advertising could only be targeted to people who had provided information about their interests and then asked for targeted advertising to come to then but this new format could see a revolution in advertising campaigns.
Anyone nervous about all of the information about them being used to push them into buying certain products should be aware that Facebook do not share their information with these companies and that advertisers using this feature never know the identities of the people they are targeting to protect the privacy of Facebook users.
Facebook also noted on their blog post about the changes that this is a practice that has been used by companies for some time offline and that they are simply transferring this use of data onto their social media platform.
A spokesman for Facebook said: “We think this new type of targeting is both more relevant for people and can be ever more effective for advertisers. We think we can serve both in a privacy-safe way.”
While the adverts may be more targeted for users this new feature is clearly aimed at giving more value to advertisers on Facebook. The social networking site has struggled to make the most of its more than one billion users in the past and to turn the huge numbers of users into increased revenue.
Advertising is the main source of revenue for Facebook and accounted for 84 percent of all the money earned by the company in 2012.
Facebook may be used by many as a form of communicating with friends and family but it is increasingly seen as an essential marketing tool by companies around the globe who are keen to tap into the enormous audience the social media site has.