Last week, AdAge reported that Facebook is testing a new advertising tool that displays relevant ads based on users’ updates in real-time. Currently, the ads are being tested on 6 million Facebook users – approximately 1% of the Facebook user population. The goal of the new advertising program would be to display more relevant ads that Facebook users would be more likely to click on. Higher click-through rates means higher conversion rates on Facebook ads that some feel currently perform below industry standards. Currently, Facebook offers “sponsored stories,” which are ads that show users’ brand interactions; the advertisements are posted in the sidebar and included with ads. It looks as if Facebook is positioning itself to become the largest online advertising platform in world. Before we discuss how Facebook’s real-time ad targeting is going to means to the fashion industry, I think we need to head back to Online Advertising 101 and discuss WHY behavioral ad targeting is and why it’s important.