Facebook has added an additional targeting type by "zip code" to Facebook Ads.
"This is a big deal for Facebook marketing, as it is now much more attractive for local businesses. Local business owners can now target the exact zip codes where they draw from, and can stop wasting clicks on areas in the city that are far away from their physical presence."
Uptil now, Facebook Ads could be targeted by Country, State/Province and by City.
This is currently only active in the U.S.
In AdWords user can append a radius around the zip code where ads should be shown to give users more proximity options. This is simply not feasible with the new Facebook targeting option. This means that local marketers should ensure that every single zip they draw from is included in this targeting feature.
[Thaks, Greg Finn]