Facebook Exchange (FBX), a new way of purchasing Facebook ads through real-time bidding, is officially out of beta testing.
Through the Facebook Exchange, advertisers and agencies are able to use cookie-based targeting through Demand-Side Platforms (DSPs) to retarget their audience on Facebook with more timely and relevant messages.
The initial results are promising as FBX significantly increases ad inventory options, and their initial performance numbers have outperformed other comparable ad environments.
What Makes the Facebook Exchange Different?
· Reach: 1 Billion users globally
· Unique reach: FBX increases unique reach by 30%
· Improved Performance: 4X higher Return on Ad Spend (ROAS) compared to traditional display. 2.2X higher post-click conversion. 6.5X lower CPA
Source: Facebook studio, 11/7/12
What is Retargeting?
Retargeting lets advertisers utilize data they have about their customers to offer more relevant and potentially personalized ads.
For example, when a consumer looks at a specific model on an automotive website, the car company might send a follow up email saying, “The model you looked at is on sale, you should buy it.”
With the Facebook Exchange, specific offers can now be retargeted to consumers on Facebook.
How Should Brands and Agencies use FBX?
According to a recent ComScore study, Facebook represents a large portion of display ad inventory on the web—more than 25%. However, this market historically has not been available to brands and agencies that buy digital media using DSPs.
Now that FBX is out of beta, advertisers can extend their Demand Side Platform (DSP) strategies to Facebook, which has dramatically expanded the online ad inventory available to buyers.
When Should Brands and Agencies Think About Using FBX?
Facebook Exchange should be leveraged when the objective is a conversion outside Facebook.
For example, say a retail client is looking to drive holiday purchases on their site. People browsing on the site or searching for a specific product both express meaningful intent. In this example, FBX would be a logical fit as those consumer signals can be used to retarget the audience when they go on Facebook.
When brand goals surround increasing awareness and favorability are the objective, Facebook’s native tools, such as page posts and sponsored stories, are usually a better fit.
To illustrate, if a retail client wanted to announce a specific style of winter coats was now available, a page post would make more sense to increase overall awareness with a group of brand supporters.
What Types of Ads Can Run?
The Facebook Exchange currently only accepts standard Facebook ads:
· 25 character title
· 90 character body
· 100×72 px image
FBX does not support IAB ad units or the following FB products:
· Page post ads
· Sponsored stories
· Ads for Facebook pages
What are the Best Practices?
Facebook is encouraging brands and agencies to extend current DSP buys and strategies to FBX. Use simple tests with a few permutations to test the channel.
FBX is a new product for both Facebook and for Facebook users so the best practices will naturally change over time, but testing the channel early and often is strongly encouraged.