1. Privacy and Data Anonymity:

• User Anonymity: Reporting on specific cities could potentially allow advertisers to narrow down user identities, especially in smaller or less populated areas. To protect user privacy, Facebook aggregates data at a higher level (like provinces or states) to prevent identification.
• Regulatory Compliance: Many privacy regulations, such as GDPR or CCPA, have strict guidelines about how user data can be shared and reported. Aggregating data helps Facebook comply with these regulations.

2. Data Aggregation and Accuracy:

• Statistical Reliability: In smaller cities or regions with low ad engagement, the sample size may be too small to provide reliable data. Aggregating at the state or province level ensures more accurate and meaningful insights.
• Ad Performance Insights: Reporting at a higher level also helps in creating a more comprehensive view of ad performance. It allows advertisers to see trends across larger regions and make decisions based on broader insights rather than data from a potentially unrepresentative small area.

3. System Efficiency and Simplification:

• Resource Optimization: Breaking down data by every possible city or town would be resource-intensive and could lead to slower reporting and data retrieval. Aggregating data helps Facebook optimize its system performance and deliver quicker insights to advertisers.
• Dashboard Simplification: For advertisers managing campaigns across many regions, reporting at the province or state level simplifies the dashboard, making it easier to analyze and optimize campaigns.

If a campaign specifically targets cities, advertisers can still view performance based on location targeting settings, but reporting will still be rolled up to the broader province or state level for the reasons mentioned above.