Facebook Ads & Exchanges: Best Practices 2012

Facebook continues to expand their advertising model to improve ad revenue. With the addition of a Facebook Ad Exchange, advertisers will be able to use all the bells and whistles of display data targeting that exist across DSP solutions. They WON’T be able to combine that data with any Facebook user data, which we know all advertisers want, but can’t have due to Facebook’s sensitivity to privacy.

AG Point of View

People visit Facebook to be and feel social. All ads should lead to a socialized occurrence and preferably keep the user on the network. This improves your chances of future engagement when the user knows your ads are not going to send them off-site and increases the likelihood their activity will be shared among their personal network post engagement.

Facebook Ads are demand generators and Facebook Ad Exchange ads are lead closers. It all depends on the type of business you have. A bike company was very successful on Facebook with advertising because they built ad experiences that had a social-centered shop setup as a post-click experience and their product is something people love to socialize.

With Facebook Exchange, you can re-target a user that visited your site. Most users may expect that the ad experience will take them right back to the site they already visited. But your visitors is feeling social – so adhere to that feeling and offer them a socialized landing experience on the network (best case). You can also give them an experience off the social network and make that page feel more social than just a “like” button by giving the landing page feature social commentary on the product, showing the product in social settings, etc.

Ultimately it’s about leveraging all that data from both ad engines to supplement their determination to feel social.

Facebook Ads vs. Facebook Ad Exchange
Facebook Ads

Ads that are built within the Facebook UI and targeting is based on demographic and user data found within the network. Targeting options include:

  • Age + Gender + Location + Relationships + Language
  • Likes and Interests based on keywords
  • Education + Work (industry)
  • Connections on Facebook > groups, pages, etc.

For brands looking to generate awareness on the network, Facebook Ads is a self-serve solution. The bidding works much like it does for search engines and advertisers have to learn to leverage bidding optimization tools to make their campaigns run cost-efficiently, as well as how to improve campaigns via technical algorithms.

Facebook Ad Exchange

Ads that are built within ad servers that have a relationship with Facebook and targeting is based on browsing history (re-targeting or profiles). Targeting options include:

  • Consumers that visited your website
  • Data clustered from types of sites visitors have browsed and stored into profiles

For brands looking to re-engage a user that interacted with their brand or other brands online that fit their audience target, users are cookied via a DSP and can be re-targeted based on visitation or other data points DSPs are capable of using including contextual, behavioral, offline data and more (currently only DSPs that are partnered with Facebook).

One comment

  1. As display retargeting is leading the way in providing roi related to display ads, Facebook is finally starting to recognize that yes they need to provide returns too. Additionally, ad exchanges allow a much easier ability to test the effectiveness of any publisher thus lowering the bar for many businesses to try Facebook.

    With that being said, even in display retargeting we have seen an inverse relationship between the advertiser’s roi for a publisher and the time visitors spend on a publisher’s site so it will be interesting to see if Facebook can be the exception or will be the poster child for this rule.

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