Monday, 4 March 2013

Facebook Extending Exchange For Advertisers

Facebook is increasing the reach of its Facebook Exchange service for advertisers on the site, with plans to move into Asia and America.

Facebook Exchange, a five month-old service with 1,300 current customers, tracks users with cookies offsite and sells the information in real-time to Facebook Marketers.
The idea, which head of ad products Gokul Rajaram first proposed to CCO Sheryl Sandberg in April 2012, was designed to appease advertisers who wanted Facebook to be part of the display-advertisement market.

The extended service is expected to generate $460 million in sales revenue this year, analyst Brian Weiser told Bloomberg, closing the gap with search giants Google Inc. who lead the way in online advertising.

Google currently claims around 50% of the $15 billion U.S. display-advertising market, but with the expansion of Exchange, Facebook is expected to earn a large chunk of the projected $7.06 billion in revenue from real-time bidding in 2016, according to eMarketer.

Rajaram has described Facebook Exchange as “a break from past thinking […] It really changes the kinds of ads that people see on Facebook, because it’s not just based on your likes, your interests.”

There are concerns that Facebook Exchange invades the user’s privacy, but the service has been specifically designed to keep all information anonymous.

Do you think that Facebook could compete with Google in advertising revenue?


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