Facebook has recently launched a new platform called Facebook Exchange or FBX. FBX is a new way of purchasing Facebook ads through real-time bidding. FBX enhances Facebook to serve more relevant ads through cookie-based data that advertisers own, targeting through Demand Side Platform(DSP) to reach their audience. Advertisers and agencies now gain efficiencies by aligning with their existing buying methods through the real-time bidding industry-standard mechanism. So how does FBX actually work? FBX allows approved third party platforms to place retargeting ads on Facebook after a user visits an external websites. When a user visits a site that has hired one of Facebook’s partner platforms (DSPs), a cookie will be stored on that user’s browser when that user reaches the point where it shows purchase intent. If a user does not complete any transaction, the DSP will be able to bid on retargeting ads that appear in the right-hand column of Facebook when the user returns back to the social network. The DSP with the highest bids get their highly-targeted ads shown to the user. But some users just don’t like being targeted. So, if a user don’t like the ad and closes it out, they will be shown a link to the DSP where they can opt out of future FBX ads. Here are some of the Demand Side Platforms (DSPs) that offer software or managed services for Facebook Exchange:
Facebook Exchange simply means that users could see more ads for things they are actually interested in or want to buy, rather than just seeing the ads as annoying distractions.