Downloaded 100 times
![Overview of the Facebook Exchange (FBX)
Brian Groth
November 2012
[I created this presentation from a variety of public sources as a way to learn more about the FBX.
See the appendix for the list of those sources – Brian Groth]](https://image.slidesharecdn.com/facebookexchange-overview-november2012-121114165128-phpapp01/75/Facebook-exchange-overview-november-2012-1-2048.jpg)
Uploaded byBrian Groth
Facebook exchange overview - november 2012
The Facebook Exchange (FBX) allows advertisers to buy targeted Facebook inventory through demand-side platforms. FBX uses third-party data and Facebook user information to target ads without sharing personal user data. Early results show FBX driving better performance than other ad exchanges, with higher returns on ad spend and lower costs-per-acquisition. FBX provides advertisers access to Facebook's large audience in a real-time bidding model.
More Related Content
Similar to Facebook exchange overview - november 2012
Facebook exchange overview - november 2012
- 1. Overview of theFacebook Exchange (FBX) Brian Groth November 2012 [I created this presentation from a variety of public sources as a way to learn more about the FBX. See the appendix for the list of those sources – Brian Groth]
- 2. Key Takeaways 1. 3rd party data targeting for Facebook ads 2. Desirable & massive RTB inventory 3. Performance looks promising
- 3.
- 4. The FBX Ad URL, not Page No Facebook user data Above the fold Re-marketing & behaviorally targeted All Facebook web users Advertiser & DSP provide data CPM DSPs provide day-parting, etc. Served by Facebook Working hours inventory Not in the Newsfeed Over 25% of US inventory Not an IAB standard Campaigns launch within one hour “…is not social advertising”
- 5.
- 6. How does itwork?
- 8.
- 10. Meanwhile the advertiser andDSP create an ad to be displayed on Facebook
- 11. The cookie is usedto anonymously identify me and a bid is made in real- time to show me an ad
- 12. I click on thead and am taken back to the advertiser’s site
- 13.
- 14. FBX Performance “Our performanceso far in the (Facebook) Exchange is doing better than the Google Exchange” Carolyn Everson VP Global Marketing Solutions, Facebook
- 15. FBX Versus OtherAd Exchanges Ad Inventory Throughout The Day US Display Inventory Morning Facebo ok Afternoon All Others Evening FBX Traditional RTB
- 16. FBX Partners Key Differentiatorsper the 16 FBX Partners: Cost: $0-$30k Service: 5 minutes – 6 weeks Value Add: Facebook Ad API
- 17.
- 18.
- 19. Frequently Asked Questions 1.Q: Will Facebook open all their ad inventory to the exchange? A: Unlikely since that would mean admitting that Facebook is just another web publisher and Facebook wants to be seen as changing the world and doing new and different things 2. Q: Are these small Facebook ads really better than a standard 250x300 banner ad? A: Arguably, a single user checks Facebook multiple times a day, not just in the morning or evening like many web sites. This is because it’s a communications tool, not a place to search and move on or a place to read an article. 3. Q: Is this an extension of the Facebook Ads API? A: No, the Ad APIs are for building ad creation and management solutions for social ads on Facebook.
- 20. What is theFacebook Exchange (FBX)? With the Facebook Exchange, advertisers and agencies Segment can drive direct response goals Promise through Demand-Side Platforms or Agency Trading Desks to reach their audience on Facebook with user intent Differentiated data from outside of Facebook for remarketing and behavioral targeted audience buys Purpose
- 21. Results Source / Partner Insights TellApart Customers who do click on the Facebook ads end up spending $159 per average order, compared to $163 for Google. Triggit one-fifth the cost per acquisition of non-Facebook RTB ad campaigns 4x the return-on-ad-spend; 2.2x higher than traditional RTB, and conversion lift has been 18 to 30% higher than a control group of users who did not see FBX ads Xaxis (WPP) fast-food restaurant, which used FBX to drive new orders while lowering cost-per-order by 22 percent compared with similar campaigns that didn’t run on the exchange. AdRoll Average ROI of 16x The Trading Desk One client is achieving conversions at half the CPA of other sources of inventory. AppNexus (for trading desk platform Reduced advertisers’ CPAs by as much as 25% Accordant) 30% increase in audience reach while maintaining key metrics such as impression to conversion rates. Bizo 300% “better” cost-per-leads, at prices 66 to 80% less than “an equivalent high-quality display impression.” TellApart 10-20x ROI
- 22. Comparing Facebook Cost Customer Service Value Add Exchange Partners Minimum spend Time to get started +FB Ads API AdRoll $0 < 1 day Criteo Bidded cost-per-click model with clicks beginning at 15 cents. 4 – 6 weeks This list of API partners is probably not 100% complete DataXu $20,000-$25,000 48 hours+ Kenshoo $10,000 a month total social media spend 48 hours+ MediaMath $25,000 1 – 2 days Nanigans $30,000 monthly Facebook ad spend minimum (not limited to FBX “depends” Yes buys) Optimal $10,000 spend a month across all ad types 5 minutes Yes Perfect Audience Free for two weeks, then $25/week minimum budget 7 minutes Rocket Fuel $20,000 per campaign 3 days Yes TellApart Retailers pay when a shopper clicks a TellApart served ad and buys. “very rapid” TheTradeDesk $0 1 day+ Triggit $10,000 minimum spend for advertisers that see about 500,000 1 week UV/month Turn $0 48 hours Yes Xaxis “case by case basis” 24 hours X+1 About $25,000 per month 1 week
- 23. Steps to howthe FBX works 1. A user visits a travel site that’s hired a DSP rigged up with Facebook Exchange 2. A cookie is dropped on that user’s computer, typically when they’ve shown purchase intent 3. If the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User ID 4. The advertiser pre-loads creative for ads that would target that user 5. When the user visits Facebook it recognizes the cookie dropped by the DSP 6. The DSP is notified and allowed to make a real-time bid to show the user ads 7. The DSPs with the highest bids get their highly-targeted ads shown to the user 8. If the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
- 24. • February 2012: http://www.comscore.com/Insights/Presentations_and_Whitepapers/2012/2012_US_Digital_Future_in_Focus and http://www.poynter.org/latest- news/mediawire/162949/facebook-delivers-1-of-every-4-online-display-ads/ • June 13, 2012: Initial announcement of FBX • http://techcrunch.com/2012/06/13/facebook-exchange/ Resource • http://allthingsd.com/20120613/whats-a-facebook-ad-exchange-a-partial-explainer/ • • http://www.bloomberg.com/news/2012-06-13/facebook-to-debut-real-time-bidding-for-advertising.html June 20, 2012: http://www.businessinsider.com/facebooks-new-rtb-ad-exchange-is-about-data-not-effectiveness-2012-6 s for this • • September 11, 2012: http://www.digiday.com/platforms/how-facebook-just-became-critical-for-b2b/ September 13, 2012: FBX exited the beta phase • http://www.facebook-studio.com/news/item/introducing-facebook-exchange presentati • https://www.facebook-studio.com/fbassets/resource/66/FacebookExchange20120913 • http://allfacebook.com/facebook-exchange-officially-out-of-beta_b99565 • http://allthingsd.com/20120913/facebook-throws-a-coming-out-party-for-its-ad-exchange/ on • http://www.adexchanger.com/ad-exchange-news/fbx-ftw-partners-share-results-as-facebook-exchange-exits-beta/ • http://blog.appnexus.com/2012/the-world-of-display-advertising-just-got-a-lot-bigger-2/ • http://blog.triggit.com/facebook-exchange/ and http://triggit.com/fbx-insights-around-speed • http://tellapart.com/early-results-from-facebook-exchange-show-strong-roi • http://www.adweek.com/news/technology/buyers-bullish-facebook-exchange-143658 • September 27, 2012: http://adage.com/article/digitalnext/viewable-impressions-digital-s-future-ready/237439/ • October 5, 2012: http://allthingsd.com/20121005/why-the-ad-tech-guys-are-going-nuts-about-facebook-exchange-and-why-that-matters/ • October 15, 2012: http://www.mediapost.com/publications/article/185176/facebook-exchange-adopts-ad-verification-intent-r.html • October 23, 2012: http://www.forbes.com/sites/afontevecchia/2012/10/23/facebook-exchange-two-birds-with-one-stone-challenge-google-drive-revenues/ • October 25, 2012: • http://www.insidefacebook.com/2012/10/25/facebook-exchange-what-it-is-and-who-to-work-with-to-get-started/ • http://www.valuewalk.com/2012/10/facebook-inc-fb-ad-exchange-fbx-step-by-step-analysis/ • November 5, 2012: AdWeek and Triggit articles with FBX results • http://www.adweek.com/news/technology/sitdown-144982 • http://finance.yahoo.com/news/facebooks-ad-exchange-quadrupled-market-134300969.html • http://blog.triggit.com/why-the-facebook-exchange-ends-the-viewability-debate/ • http://www.adweek.com/news/technology/turn-builds-out-facebook-ad-capabilities-144979 • http://www.webpronews.com/facebook-facebook-exchange-is-doing-better-than-google-exchange-2012-11 • Facebook Resources: https://apps.facebook.com/pmddirectory/ and https://fbcdn-dragon-a.akamaihd.net/cfs-ak-snc6/85001/143/446672752021203- /Marketing_API_Guide_US.pdf
Editor's Notes
- #2 This presentation assumes that the audience knows at least a little bit about: Real-Time Bidding and DSPsFacebook advertisingContact Brian Groth for questions about this presentation
- #3 It is also a natural extension to any campaign
- #8 A user visits a travel site that’s hired a DSP rigged up with Facebook ExchangeA cookie is dropped on that user’s computer, typically when they’ve shown purchase intentIf the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User IDThe advertiser pre-loads creative for ads that would target that userWhen the user visits Facebook it recognizes the cookie dropped by the DSPThe DSP is notified and allowed to make a real-time bid to show the user adsThe DSPs with the highest bids get their highly-targeted ads shown to the userIf the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
- #9 This usually happens upon my purchase intentExample:Set-Cookie: HSID=AYQEVn….DKrdst; Domain=.foo.com; Path=/; Expires=Wed, 13-Jan-2021 22:23:01 GMT; HttpOnly---A user visits a travel site that’s hired a DSP rigged up with Facebook ExchangeA cookie is dropped on that user’s computer, typically when they’ve shown purchase intentIf the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User IDThe advertiser pre-loads creative for ads that would target that userWhen the user visits Facebook it recognizes the cookie dropped by the DSPThe DSP is notified and allowed to make a real-time bid to show the user adsThe DSPs with the highest bids get their highly-targeted ads shown to the userIf the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
- #10 A user visits a travel site that’s hired a DSP rigged up with Facebook ExchangeA cookie is dropped on that user’s computer, typically when they’ve shown purchase intentIf the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User IDThe advertiser pre-loads creative for ads that would target that userWhen the user visits Facebook it recognizes the cookie dropped by the DSPThe DSP is notified and allowed to make a real-time bid to show the user adsThe DSPs with the highest bids get their highly-targeted ads shown to the userIf the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
- #11 A user visits a travel site that’s hired a DSP rigged up with Facebook ExchangeA cookie is dropped on that user’s computer, typically when they’ve shown purchase intentIf the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User IDThe advertiser pre-loads creative for ads that would target that userWhen the user visits Facebook it recognizes the cookie dropped by the DSPThe DSP is notified and allowed to make a real-time bid to show the user adsThe DSPs with the highest bids get their highly-targeted ads shown to the userIf the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
- #13 http://www.southwest.com/html/promotions/nationwide-sale.html?src=WBMD0A86FARSALNTLFACSOC121030&a=1
- #15 4x higher Click-through ROAS (Post-Click Return-On-Ad-Spend)compared to retargeting on the traditional ad exchangesConversions on FBX is 2x as likely to happen in the first two days than retargeting on the traditional ad exchanges.FBX ad not only out-performs above-the-fold only ads, but they outperform them at 1/3 the cost.CTRs rose 3x higher than the industry average according to NBC Universal
- #16 4x higher Click-through ROAS (Post-Click Return-On-Ad-Spend)compared to retargeting on the traditional ad exchangesConversions on FBX is 2x as likely to happen in the first two days than retargeting on the traditional ad exchanges.FBX ad not only out-performs above-the-fold only ads, but they outperform them at 1/3 the cost.CTRs rose 3x higher than the industry average according to NBC Universal
- #17 Only 4 by my count also use the Facebook Ad API to place social ads on FacebookThe following are listed on https://apps.facebook.com/pmddirectory/ for “Facebook Exchange through realtime bidding” Ad Management Tools: AdRollAppNexusCriteoDataXuMediaMathTellapartTheTradeDeskTriggitTurnXaxis (WPP)Full list of FBX PartnersAdRollAppNexusBrandscreenCriteoDataXuKenshooMediaMathNanigansOptimalRocket FuelTellapartTheTradeDeskTriggitTurnX+1. Xaxis (WPP)Plus Facebook is working to add partners in Europe, Latin America and Asia
- #21 Sources: http://www.facebook-studio.com/news/item/introducing-facebook-exchange and https://www.facebook-studio.com/fbassets/resource/66/FacebookExchange20120913Facebook goes on to say that “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. ”The value prop does seem to be missing the proof or some reason to believe it.
- #23 http://www.insidefacebook.com/2012/10/25/facebook-exchange-what-it-is-and-who-to-work-with-to-get-started/http://www.adweek.com/news/technology/turn-builds-out-facebook-ad-capabilities-144979