Facebook exchange

Brook Minto

Background

Facebook has begun trialing a new advertising platform called Facebook Exchange. Currently in its testing phase, the exchange will allow brands to bid on ads targeted at specific Facebook users based upon data from third party DSP's (Demand Side Platforms). The ultimate ambition is for Facebook to drive up advertising revenue by increasing the ROI of its ad units via greater relevance, better market pricing of the ads, and/or improved monetization of their inventory. However, while third-party DSP cookie data can now be applied within Facebook, the social network will not allow the cross pollination of their personal data. In other words Facebook data can't be used to improve targeting outside of the Facebook ecosystem. Nonetheless, the new exchange represents a significant change in the way Facebook sells advertising as well as their willingness to make better use of their data.

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