Facebook have recently decided to launch their own service, 'Facebook Exchange' that allows businesses to advertise on Facebook. Despite the obvious popularity of Facebook some people may still ask, how beneficial is Facebook advertising actually going to be for my buisness? The answer is very beneficial!
With reportedly over 500 million daily users on the social networking site, the opportunity to promote your ecommerce business is substantial. However, if you decide that your business should embark on the Facebook Exchange, who will actually see your advertisement?
How Facebook Exchange Works
When a Facebook user visits an external third party site, the cookies for that site are marked by Facebook Exchange. Then, when the user next visits Facebook, advertisements will appear along the side of the various Facebook page advertising products and services similar to the page external page you previously viewed.
How Do You Get Your Business to be on Facebook Exchange?
If a business is looking to have their advert appear on Facebook, they will hire Demand Side Platform (DSP) company. A DSP is a company that communicates with Facebook allowing a business to customise their performance indicators such as target audience and cost per click. They also allow a business to bid on specific ads that relate to your business. However, competition for these ad slots are incredibly high with a number of different companies all attempting to get them. The company who has bid the highest amount for the advert slot that relates to the users third party website will get their advert placed on Facebook.
The real problem with advertising on Facebook is that users will always have the option to opt-out of having a specific Facebook Exchange adverts appear on their Facebook page. This means that you could have a number of people visit websites that relate to your business, but if they have opted out your advert previously, it will not appear on their page no matter how much you have bid for the slot.
Despite this potential negative, the positives of using Facebook Exchange are huge. This is underlined by the fact that Facebook are predicted to increase their advertising revenue this year by 60% to over $5 billion.