Today we’re announcing that Facebook Exchange (FBX), a new way of purchasing Facebook ads through real-time bidding, is officially out of beta. We first announced that we were testing Facebook Exchange in June of this year. Through Facebook Exchange, advertisers and agencies have been able to use cookie-based targeting through Demand-Side Platforms (DSPs) to reach their audience on Facebook with more timely and relevant messages. For brands and agencies, the result is a powerful tool for driving direct response goals on Facebook. We caught up with Scott Shapiro, product marketing manager for Facebook Exchange, to learn more.
What does Facebook Exchange enable brands and agencies to do?
Facebook Exchange allows marketers to use their own real-time consumer insight data to reach an audience on Facebook. Facebook represents a large portion of display ad inventory on the web—more than 25% according to a recent ComScore study—so this is a significant opportunity for advertisers using DSPs to extend the same strategies that are working for them on other display exchanges to Facebook. The only ad format available on Facebook Exchange is our Facebook Standard Ad, so you can really think of this as display.
When should brands and agencies think about using Facebook Exchange?
Start with your objective and the type of targeting that is best to achieve that objective—a deep understanding of those two things will lead you the type of ad product and buying channel that is best for your goals.
For example, say I’m an e-commerce company looking to drive purchases on my site. In this case, people browsing on my website or searching for products that I sell on a search engine are expressing meaningful intent. Facebook Exchange would be a great fit because it enables me to use those signals to remarket to this valuable audience on Facebook, and at the right time. For many advertisers in industries like retail, travel, auto and financial services, Facebook Exchange is a great way to drive conversions from Facebook based off consumer insight data. Advertisers can extend these same performance-driving techniques they do on other exchanges to Facebook.
Any situations where FBX might not be the best fit?
Absolutely. Suppose my objective is to drive awareness and favorability through a really engaging photo that I post to my brand’s Page. My fans represent my customers. So when they like and comment on my photo I’ll receive viral distribution in news feed. All of that distribution can be increased with Sponsored Stories and Page Post Ads—particularly in the Facebook news feed, one of the most engaging places on the web on both desktop and mobile. In this case, using Facebook’s native targeting options and buying channel is the best choice.
Facebook Exchange is perfect when the objective is a conversion outside Facebook and the data used to drive that objective exists outside Facebook. When brand goals like increasing awareness and favorability are the objective, Facebook’s native tools are usually a better fit because they work with all our social formats and placements in addition to fan targeting.
How do advertisers get started with Facebook Exchange?
Advertisers already working with a DSP can give them a call and ask for Facebook Exchange. We have over a dozen of the most prominent U.S.-based DSPs and we are working with newer partners in Europe, Latin America and Asia to have solid presence globally. Your Facebook rep will also be a great resource for helping you align your goals with your larger Facebook strategy.