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The Search Agency’s Point of View: Facebook Exchange
Posted By Keith Wilson On June 15, 2012 @ 10:17 am In Display,Featured,Social Media | 3 Comments
Facebook recently announced the company is testing and will soon be rolling out Facebook Exchange, a real-time bidding ad system where visitors to third party websites are tracked via cookie, enabling the serving of targeted ads to users on Facebook.
What is the change?
The introduction of Facebook Exchange (or FBX) marks a new ad revenue stream to Facebook’s advertising program. Advertisers will now be able to leverage data more representative of purchase intent for targeting consumers on Facebook. Previously, the Facebook Ads system relied on the ‘hand-raising’ attributes or actions taken by consumers, such as “likes”.
Why is the change being made?
For investors looking for justification of a $104B valuation at the time of Facebook’s IPO, the news of Facebook Exchange should help ease some of the worry. Facebook Exchange provides the opportunity for a new, large advertising revenue stream by giving advertisers with specific targeting requirements the ability to reach these consumers with relevant messaging on Facebook.
How will it work?
Facebook will serve ads based on the CPM price paid through partner demand side platforms, or DSPs. The ads will be in the format of the traditional Facebook Ads with image and headline/call-to-action text native to Facebook. The ads will not impact Sponsored Stories or mobile at this time.
Facebook is currently testing the system with 8 demand side platforms (DSPs) – TellApart, Triggit, Turn, DataXu, MediaMath, AppNexus, TheTradeDesk, and AdRoll.
Per TechCruch’s discussion with a Facebook representative , here is how Facebook Exchange will work:
With regards to privacy, Facebook users will have the ability to opt out of ads from the DSP, but not from within the social network. Facebook cannot control how DSPs drop cookies and therefore users wanting to be opted out will have to do so on each of the DSPs, a common practice for all internet sites.
What benefits does it provide advertisers?
What challenges does the change present to advertisers?
What action does The Search Agency recommend?
The Search Agency recommends testing ad buys using the advanced targeting techniques available through a DSP. If you have any questions, please reach out in the comments, find us on Facebook, or shoot us a tweet @thesearchagency
Article printed from The Search Agents: http://www.thesearchagents.com
URL to article: http://www.thesearchagents.com/2012/06/the-search-agencys-point-of-view-facebook-exchange/
URLs in this post:
 Image: http://www.thesearchagents.com/wp-content/uploads/2012/03/Blog_banner_facebook.jpg
 TechCruch’s discussion with a Facebook representative: http://techcrunch.com/2012/06/13/facebook-exchange/
 DMA 2012 Lessons: Facebook Engagement Is Only Getting Better: http://www.thesearchagents.com/2012/10/dma-2012-lessons-facebook-engagement-is-only-getting-better/
 Are Facebook Custom Audiences Creepy?: http://www.thesearchagents.com/2012/10/are-facebook-custom-audiences-creepy/
 Will Google’s AdID Change the Online Advertising World?: http://www.thesearchagents.com/2013/09/will-googles-adid-change-the-online-advertising-world/
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