Facebook Exchange Real-Time Bidding Ad System in Testing, Coming Soon!

Facebook plans to launch "Facebook Exchange," a real-time bidding ad system where visitors to third-party websites are marked with a cookie, and can then be shown real-time bid ads related to their web browsing when they return to Facebook."For example a travel site could serve ads about a flight to Hawaii to someone who almost […]

Facebook Exchange (FBX) Bid Ads Platform

Facebook plans to launch "Facebook Exchange," a real-time bidding ad system where visitors to third-party websites are marked with a cookie, and can then be shown real-time bid ads related to their web browsing when they return to Facebook.

"For example a travel site could serve ads about a flight to Hawaii to someone who almost bought a flight on their site. Advertisers might pay big premiums for highly-accurate targeting. Users will be able to opt out of Facebook Exchange via third-party demand-side platforms, but they can't opt out of the program completely from within the social network," Facebook explains.

Facebook Exchange (FBX) currenlty in testing with eight advertising demand-side platforms, and it will become more widely available in the next few weeks for traditional Facebook sidebar ads charged at cost-per-thousand-impressions, but not Sponsored Stories or mobile, facebook said.

Here's how 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 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

[Via]