Facebook (NASDAQ:FB) has a new system for showing ads and both Target (NYSE:TGT) and Shutterfly (NASDAQ:SFLY) are testing it out.

The new advertising system is called Facebook product ads. It allows businesses to offer specific ads to users based on their interests. The business can either set the product ads to target users of the social media service on their own, or they can let Facebook do it for them. These ads can also include multiple products.

Kristi Argyilan, Senior Vice President of Target, said that Facebookproduct ads have resulted in a 20% higher conversion rate when compared to normal ads on the service. She also noted that the conversion rate is up for ads viewed on mobile devices.

According to John Boris, the Chief Marketing Officer at Shutterfly.com, the new Facebook product ads are also benefiting Shutterfly. He said that more users are clicking on ads and that the multi-product feature has allowed it to show off products in “a clean, engaging way.”

FB shares were up 1% as of Wednesday afternoon.

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