Facebook has rolled out a new feature allowing advertisers to target their ads based on zip code. This is great news for local businesses and others who could only target by State/Province or City until now.

This new feature is available in the Facebook ad self-service tool. The tool is easy to use for small businesses to set up an ad, target it to the Facebook users they want as customers and set a payment threshold to match their budget.

Both Facebook Ads and Sponsored Stories get this feature. Sponsored Stories are ads that include a viewer’s friends interaction with your page or a story about your Facebook Page posts.

Facebook has other improvements to their self-service ad tool coming such as suggesting categories for targeting.

[Source: Inside Facebook, Image credit: west.m]