The social network is set to launch a new advertising service that will allow advertisers to retarget users and bid in real-time based on a user’s recent browsing activity. The new service will be called Facebook Exchange and is rumored to be available within a few weeks. A Facebook spokesperson said that pricing will based on a cost per thousand impressions (CPM) and ad spots will be sold via third-party vendors.
Facebook Exchange will target users by tracking cookies and the partner sites will then use these cookies to identify Facebook members. The social network will not allow its members to block these cookies and will leave it to the third-party vendors to take responsibility for giving the users the opportunity to opt-out.
The third-party vendors include Triggit, Turn, DataXu, MediaMath, AppNexus, TheTradeDesk and AdRoll.
There has been no word of any changes to the current Facebook advertising options, where advertisers can target its members by using specific demographic data alongside user Likes.
The Google Display Network (GDN) offers a similar product via Remarketing, however, the new Facebook Exchange product will allow advertisers to target people who like specific products or brands, allowing advertisers the ability to reach extremely targeted audiences. It will be interesting to see how the Facebook Exchange platform can supplement advertisers’ paid search marketing efforts and Remarketing campaigns through the GDN.