Facebook on it’s blog recently announced it’s new system to advertise on Facebook open to all users.The beta testing of the same had been started in June with selective clients which broke their silence once the product came out of Testing. So what is the new product Facebook is banking upon?

Facebook Exchange (FBX) is a new way to re-market brand’s products on Facebook. It is not an out of the Blue invention but something which Google has already done with their Ads. It will tend to effectively showcase the real target audience with capturing the consumer behavior via the cookie based data it will receive. This will allow marketers to reach their Facebook audience in real time bidding.

So where this ads will be displayed?

Where you see the Facebook Ads – At the right hand side of your Facebook Profile. These ads won’t be consisting of Sponsored stories or Mobile ads and are chargeable at cost per thousand impressions.So, you must be thinking how it works?

A reel life example below:

  • I want to buy a new Mobile and i go to Flipkart’s site to check the rates and the models they have to offer.Checking some of the models which i liked,i log out of Flipkart and log in on Facebook to check what my Friends been up to.
  • Flipkart,on the other hand have enabled the FBX based ads for their products.
  • So, a cookie gets stored in my computer when i was browsing the website and then is hooked up to Facebook who can then target me with the same Flipkart Ad (preferably about mobiles and with discounts).
  • When i log in to Facebook, Facebook recognizes the same cookie and displays the ads relevant to my intent of purchase.

Seeing the same product on Facebook may influence my decision of buying from Flipkart and will result in a sale for them.These ads target the external behavior of the consumer which will be more of website driven than socially driven.Re-targeting users with a thought which is on their mind will not only help the brand to be on top of their watch list but also convert those potential buyers in to real ones.

How FBX can be useful for you:

  1. When your objective is not socially driven,but website driven
  2. When the objective is not brand awareness but conversion outside Facebook
If you still want your brand to be socially active and your goals are more on Social Awareness and engagement, FBX is not the thing for you. Sponsored Stories and Mobile Sponsored stories are more than capable of doing it for you.
Some of the clients who have tested the FBX have indeed yield positive results.
AdRoll reported an average ROI of 16 times when the FBX was out of beta along with TellApart’s clients experiencing 10-20 times increase in their ROI.
If you too, want to get cracking on this tool, you can find the starter’s guide here . You can also contact the preferred DSP agency which are listed by Facebook here. You can select ‘More Options’ and ‘Facebook Exchange through Real Time bidding’.
Will this new way Facebook has adopted for advertising fail or succeed?
Do let me know in your comments.