Google long ago discovered that the way to make internet advertising effective was to make the ads something you are interested in. It took Facebook a while to even do ads as they were initially trying to build a brand, and then take that brand public. Now we see that advertising revenues are increasing, and that is in large part due to a more effective targeting of advertising.
As TechFrag pointed out, they are getting smarter about this:
Whenever a user chose to hide the ad, Facebook presumed that the ad was not relevant and it should not be shown to anyone on Facebook. So they hid it from all over the platform. This affected those ads that might have been of interest for other users.
Now Facebook is moving a step further in showing relevant ads by learning why people don’t want to see a particular ad. According to the new plan, when you choose to hide the ad, Facebook will ask why you don’t want to see the ad.
Get the details by reading the article on TechFrag authored by Mazhar Naqvi.