FBX: Facebook Turns to Re-Targeted Ads Instead of Profile Data
By Karla Robinson
September 27, 2012
September 27, 2012
- Advertisers have historically targeted specific audiences and then sent their ads to TV shows with that same audience. Facebook jumped on this model, offering user data — gender, age, location, marital status, “interests” — to determine targeted audiences.
- “All this extra data was supposed to be a gold mine for Facebook, and Facebook built up a huge ad sales apparatus to sell ads targeted with it,” Business Insider writes. “It turns out this whole tactic may have been a big waste of everyone’s time.”
- Facebook has recently switched over to re-targeting, a strategy used by ad-sellers for years, which is much more valuable to advertisers — and much more profitable for Facebook.
- Re-targeting has one crucial difference: intent. While targeted ads hope to entice viewers based on their perceived interests, re-targeting actually shows ads for products that users have already shown intent to buy.
- The article explains how “cookie” software is downloaded when you visit product pages on retail sites. After you leave the site, you’ll see re-targeted ads of the items you’ve already investigated online — not just products that align with your Facebook “likes.”
- The social giant sells re-targeted ads on the Facebook Exchange or FBX, where companies buy Facebook ad inventory and sell it to marketers using re-targeting.
- “Zach Coelius, CEO of Triggit, one of the ad-reselling companies Facebook has invited onto FBX, says that return on investment for advertisers buying through FBX is so good, that if all of Facebook’s ad inventory were sold with re-targeting, instead of user data targeting, Facebook would be able to charge 3X the price it charges for ads right now,” explains the article.
- “What’s truly remarkable is that inventory sold through FBX re-targeting uses ZERO Facebook profile data, and yet it is much more valuable.”
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