Whether you’re a small startup or a large corporation, Facebook advertising is a great way to reach your audience. However, have you ever thought of taking your advertising efforts to the next level by specifically tailoring your content to a certain group, audience, or individual?
If you’re not familiar with advanced Facebook advertising, I encourage you to take a seat. It’s time to get schooled on the new way to advertise on the world’s most popular social network — the Facebook Exchange (FBX).
According to Facebook, the FBX helps advanced advertisers reach people on Facebook based on specific actions they’ve taken online, such as visiting a website. This kind of targeting reaches people who have expressed an interest through their online behavior so you can connect with them with a similar kind of product or service.
Here’s a great example: Let’s say you manage a concert venue. You’d like to target those who have either visited your website, your competitor’s website, or have an interest in a certain type of event. FBX allows you, the advertiser, to target these key people based on other things they have done on the Internet.
Confused? Don’t be! Read on to find out more about the exchange, as well as some companies that are making the most out of FBX.
How FBX Works
The easiest way to explain FBX is to compare it to an auction. According to Business Insider, FBX involves a real-time bidding ad exchange in which advertisers drop tracking cookies on users’ browsers as they surf the web. If an advertiser dropped cookies during an online shopping adventure, they can then retarget those users with ads once they enter Facebook. This could help them to remember to come back to the sites they were shopping on.
Although you may not have heard about FBX, it’s quite popular in marketing circles. Take a look at these facts:
Millions of ads are sold and purchased on FBX every second with the help of demand-side platforms that plug advertisers into FBX. Billions of impressions are served every day
FBX fills a particular niche known in the marketing world as “demand fulfillment.” This essentially nudges shoppers to complete a purchase they’ve already shown an interest in.
FBX needs to happen in real-time. As Business Insider notes: “It’s impossible to target a user who is interested in living room furniture with personalized ads when they open their Facebook page unless he or she can be identified and served a relevant ad in milliseconds.”
FBX in the News Feed
FBX doesn’t just happen on the right-hand side of your profile anymore. FBX also appears in the News Feed. You may have noticed this already, particularly when it comes to certain products or services you’re already interested in. And according to Facebook, that’s the whole point.
In a blog post, Facebook reiterated that “allowing advertisers to reach people in News Feed is important because people spend more time in News Feed than any other part of Facebook.” They also believe that advertisements which are delivered through FBX make for more relevant ads. Introducing FBX in the News Feed actually doesn’t increase the number of ads a user sees. According to MarketingLand, ad units already showing there will now include Facebook Exchange-powered units
Companies that use FBX
FBX has been pretty successful. According to a report by AdRoll, among 547 advertisers and more than a billion impressions, FBX ads in the News Feed led to 49 times greater click through rate (CTR) and a 54 percent lower cost per click (CPC) than FBX ads in the lower-profile sidebar. However, no matter where the ads are placed, FBX is creating results.
Many organizations see the value of FBX, but before they can start using it, they have to integrate with these qualified companies that have launched on FBX’s Facebook’s real-time bidding system. Through these partners, advertisers have the ability to access multi-touch attribution, view-through conversions, global frequency capping, day-parting, and creative optimization.
Tons of companies are using FBX, from Zappos, to 1-800-Flowers, to Ally Bank, to Drugstore.com and many more. While every company is clearly using FBX in their own way, it’s important to understand what it can do for your organization. MediaMath, one of Facebook’s qualified partners, reported that one FBX campaign accounted for nearly 40 percent of the conversions driven within three weeks of launch. This represented nearly four times the conversion rate of non-Facebook media.
As you can see, FBX can be a huge asset to your Facebook presence. Though it’s not for every company, definitely do your research and evaluate whether or not it can work for you.
Let me know if you have experience with FBX in the comments below!