Facebook Ad Exchange (FBX) – The first ever social media real-time bidding (RTB) ad exchange
What is Facebook Ad Exchange (FBX)?
Usually an Ad Exchange is defined as the platform which helps in facilitating the buying and selling of digital advertising from multiple ad networks. The prices for the ad inventory is based on real time bidding which means, the advertiser who bid high will win the impression from the seller. For example if you own a website A and wanted to sell your advertising space through Ad Exchange, then you need to list your site in these ad exchanges, where advertisers will bid on your advertising inventory, and the advertiser who has highest bid will win the impressions from your website and his ad will be shown in your website A. Some of the popular Ad Exchanges include Appnexus, DoubleClick, OpenX and Rubicon Project.
Image Source: nusparkmarketing.com
But, Facebook did not launched its FBX (Facebook Exchange) till 2012. Anyways in order to win impressions from Facebook exchange, we can buy its inventory from RTB platforms. Here in the game of RTB, Facebook Ad Exchange is the website seller who is selling his advertising space through their Exchange which in turn available through popular RTB platforms.
Facebook exchange will helps in reaching customers who has already shown interest in similar kind of product through online engagement. For example if you are trying to sell airline tickets through your website. With Facebook Exchange you can target people who has searched or bought airline tickets previously through internet. You can also retarget your audience through remarketing in Facebook with the help of Facebook Exchange. Suppose, if one of your website user has visited your ecommerce website and browsed Nike shoes, through other means of advertising, a unique cookie is saved under the user’s computer which will be identified by Facebook Exchange. The next day, you can show the same shoe ad to the user through ads in Facebook with the help of Facebook exchange.
With Facebook Exchange you can increase the daily reach of your campaigns.
Benefits of using Facebook Ad exchange:
- With the help of Facebook exchange, you can leverage your customer’s reach. You can spend more money on Facebook advertising and earn more money. Facebook has around 1 billion reach, so you can increase both quantity and quality of traffic to your business.
- With the help of consumer data which can be obtained through other display advertising campaigns and also through DMP‘s, you can reach more customers in Facebook through Facebook exchange. Almost Now a days, everyone has a Facebook account, so there is a huge opportunity for your business to reach your potential customers using your customer data and also the data from third party providers like Bluekai, Addthis and Lotame etc.
- With Facebook exchange, you can use your RTB platforms for bidding on impressions and buying them. The more you spend, the more inventory you can get from Facebook.
Who Should Use Facebook Exchange?
Facebook Exchange is useful for marketers who are willing to expand their audience reach. With this they can retarget their customers and also use behavioral targeting for 1 billion users who are in Facebook. This gives the opportunity to reach huge amount of audiences.
Facebook says that, Facebook Exchange does not replace their current social media campaigns which they are running in Facebook, they say that it should be used along with normal Facebook advertising in order to gain more reach, Like the Facebook’s popular News feed ads should be run along with Facebook exchange campaign in order to achieve greater results.
Benefits in using Facebook Exchange:
- With Facebook Exchange you have the flexibility to reach over 1 billion active users globally.
- Facebook Exchange supports both right side ads and also News feed ads which helps in reaching your customers in all possible ways.
- With Facebook Exchange you can run direct response campaigns. Unlike other advertising companies where you need to wait 3 – 4 days in order for your campaigns to kick in. You can see instant results with FBX.
- Facebook Exchange supports popular DSP’s (Demand Side Platforms) like Appnexus, Adroll, Mediamath etc. So you can buy FBX inventory from these approved DSP’s. To see what are the DSP’s that Facebook supports see here.
Here are the steps on how to setup your first campaign to buy FBX inventory from Sitescout DSP.
Login into your sitescout RTB manager, by visiting the following URL
After you have logged into your account, click on New at the right hand side of your Sitescout dashboard. And then choose, Desktop Campaign > Facebook Campaign
Now, give a name to your Facebook campaign, and fill the following details.
- Campaign Name
- Destination URL
- Impression Tracking URL ( If you are using any third party ad server, then you should use this)
- Frequency Cap
- Default CPM Bid
- Daily Budget and All time budget
- Day Parting settings
- Flight Dates ( In which you can set your campaign run in specific date ranges)
- Location ( Set the location info on where you want to run your ads)
- Zip Code ( You can also target users basing their zip codes)
- Conversion tracking ( You can create a new conversion pixel which can be used to track your conversions)
Under the Conversions field, create a new conversion pixel by clicking the Plus button to track your conversions.
Click on Track to track your conversions and pull the tags for that pixel you created and place it in your thank you page to track conversions properly.
You can also capture the audiences who have visited your landing page which can be used for retargeting, by using Campaign Audience Capture.
Create a new audience group by clicking on Create new Audience and select the audience group when targeting and pull the audience tags and place it in your landing page, so that whenever a visitor visits your website, a cookie will be placed on the visitor’s computer which can be used for retargeting.
In the above example, I have created an audience group named Test Clicks. Later in this article, I will show you how to use this audience group for remarketing purposes.
In this step, choose the devices you want to display your ads. In my example, I am targeting to desktop users only. You can see below.
After choosing the devices you want to display your ads, click on Next Step.
In this step, Sitescout will give you two options either to target third party audience groups or your own audience group (If you have already built one). Earlier, in Step 3 I have created the audience group called Test Clicks. If I want, I can target to those users who have visited my website through other sources. For this, first you need to place your audience pixel code in your landing page, so that people who visit your website by other means will be added to your audience list. Then you can target those users using Facebook campaign in sitescout or else you can simply use third party data from third party data providers.
Here in this example I am going to use third party data,
I am looking to target people who have already shown some interest in hotels booking. In the above screen I am going to choose some targets related to Hotel booking. And click on Next Step to proceed further.
In this step, your sitescout will allow you to choose from two options.
- Run on selected sites in Facebook
- Run Across all of Facebook.
If you know which pages can bring you good results, you can select the pages you want to advertise on. In this example I am going to use Facebook – Home page to display my ads.
After selecting the required pages you want to display your ads, click on Next step to move further in creating your Facebook Exchange campaign.
Finally, in this step, you are required to upload your ad creatives. The supported ad sizes are 600×315 and the ads should have both a Headline and Body text. Once you have uploaded your creatives, click on next and submit your creatives for approval.
Once, your campaign got approved, you will start receiving traffic from Facebook Exchange.
Points to Remember:
- When creating your ads, make sure your ads and landing pages comply with Facebook Ad Policies.
- The review process may take longer time than expected, in order to get your ads accepted, three reviews are going to happen for your ads. The first review will be from Sitescout and then Appnexus and finally Facebook team. So, be patient, once your ads got approved you can see traffic coming through to your ads.
- Try to create a separate campaign by targeting your remarketing list also which will help in gaining your lost customers through Facebook.
If you need any help in setting up your sitescout campaign, leave a comment here and I will be glad to help you out.