What is Facebook Exchange and How It will Work?
Facebook is most popular social networking site, therefore, manycompanies use Facebook Pages as away to market. To this point in time, many companies have had good success but are always looking for ways to cherry pick the hottest prospects.
Now, this dream may have become a reality as the social media giant recently announced it will begin rolling out FacebookExchange. With Facebook Exchange, companies can market to their Fansusing marketing cookies. Companies have used marketing cookies for sometime but what Facebook is proposing is to offer real-time bidding based on the user’s activity online.
What is Facebook Exchange? Facebook Exchange is the newest way that advertisers can reach their niche audience, which could end up becoming the new way that advertisers get the results they want. This feature will offer a new advertising service that will allow advertisers to retarget users and bid in real-time based on a user’s recent browsing activity.
Specifically, advertisers will be able to reach users based on their browsing history elsewhere on the Web. Whatthis means is that marketers will be able to specifically advertise to people who have shown interest in their product or service based on their recent website visits!
How exciting is this for marketers? Facebook has stated that the advertisers will be able to bid on a specific ad impression, which targets a user better than ads based on a possible interest to a group. The advertising in this case shows ads to those that have shown interest in something similar they had previously showed interest in.
The key feature of this new exchangesystem is the cookie is not dropped on the user’s computer unless he or she has actually showed interest in buying. For instance, a user that appeared to be booking travel plans on a specific site but did not actually make the purchase could then beshown ads on Facebook that would be similar, which is retargeting the user.
Not only that, but they could be setting a new trend for specificmarketing to individuals that could in fact, have a huge impact on howonline marketing and advertisement is carried out.
How Does Facebook ExchangeWork?According to TechCrunch.com, here’show Facebook Exchange 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 ID4. The advertiser pre-loads creative for ads that would target that user5. When the user visits Facebook itrecognizes the cookie dropped by theDSP
6. The DSP is notified and allowed tomake a real-time bid to show the userads7. The DSPs with the highest bids gettheir highly-targeted ads shown to theuser8. If the user disapproves of beingshown the ad and ‘X’s it out, they’reshown a link to the DSP where they canopt out of future Facebook Exchangeads