Facebook is the largest social media platform boasting over 1B global monthly users, who spend over 6 hours on site monthly.
Over the past few years, Advertisers have been using Facebook as a platform to hyper-target their messages in the social environment through marketplace ads, sponsored posts, target blocks and premium ad placements. Targeting capabilities include demo, interest, geo-targeting and retargeting.
In September 2012, Facebook introduced Facebook Exchange (FBX), offering advertisers and brands the opportunity to purchase inventory through demand-side platforms (DSPs) and exchanges to drive campaign efficiencies. Utilizing 1st and 3rd party consumer data, FBX allows advertisers to reach their target audiences through real-time bidding, similar to Google and AOD.
Up until now – advertisers could only use this targeting with marketplace ads (small ads on right rail of the page). Recently, Facebook opened the exchange to test the premium newsfeed placements, allowing advertisers to reach their audience in more premium positioning than the marketplace ads. These ads are not only meant drive traffic or engagement with advertiser Facebook brand pages, but can also be used now to drive users off site to the brand page.
FBX has successfully been utilized by brands with a direct response focus. Here is a direct response remarketing example from Nordstrom:
User views product on Nordstrom.com:
User is retargeted on Facebook with an ad for that product
Drives back to Nordstrom.com
Users can be remarketed from LOP.com utilizing 1st party data provided.
FBX is bought on a CPM using the real-time bidding model, which is standard for exchange, DSP and trading desk buys. This can also be bought using a CPC model.
It will be interesting to see how FBX evolves as more advertisers begin to test out the offering. To date, Facebook has not been seen as a strong and efficient partner to drive off site, only to Facebook Brand pages and contests. While we’re not necessarily expecting this new offering to make our Facebook buys more efficient overall, we will be looking to see if Facebook is able to play amongst the AODs and GDNs of the world in driving efficient and qualified traffic to brand.com.
*Simone is a Media Supervisor on the L’Oreal account and super passionate about beauty, especially lipstick and nail polish! Follow her new blog at sassylipsnthings.blogspot.com and on Twitter @SassyLipsnThing
via Facebook Exchange: Implications and Practical Uses | Moxie Blog.
