Facebook Exchange, or FBX, has introduced real-time bidding at the impression level on Facebook — working to increase the ROI of Facebook advertising campaigns. Enabling retargeting on Facebook, marketers can deliver ads to people on Facebook who have recently visited and engaged with their domains.
Nanigans is the only Strategic Preferred Marketing Developer listed in Facebook’s PMD Center with access to the Facebook Exchange and the Facebook Ads API. Complementary advertising channels, marketers should leverage both to maximize reach, engagement and impact in achieving marketing goals from awareness to conversion – and ultimately, to deliver a strong return on ad spend. Before leveraging either, it is important to understand differences between ad buys through the Facebook Exchange and the Facebook Ads API.
Below we demystify five common misconceptions of the Facebook Exchange:
1. FBX provides access to Facebook targeting data
False! Facebook Exchange does not provide access to Facebook’s rich targeting data, such as demographics (from age, gender, location to education, workplace and more), interests, and actions. This targeting data is available through access to the Facebook Ads API. Facebook Exchange, on the other hand, allows marketers to bring their own intent data to Facebook, such as the browsing practices of people visiting their own web properties. For example, a retailer could leverage Facebook Exchange to retarget users who have visited their site and perhaps added items to their carts but not actually purchased.
2. FBX provides access to all Facebook ad inventory
False! Facebook Exchange provides access only to ad inventory on the right-hand side of Facebook desktop. Marketers must leverage Ads API buys in order to access inventory in the most engaging part of Facebook, the News Feed, as well as to leverage Facebook’s compelling mobile advertising offerings.
3. FBX provides access to native Facebook ad types
False! Facebook Exchange provides access only to standard domain ads. These ads feature a title, body and image. However, Facebook’s native ad types and social ad products are not accessible through the Facebook Exchange. Marketers must leverage Facebook Ads API buys in order to leverage engaging ad units and the social context inherent in ad products like Sponsored Stories, Page post ads, homepage ads, mobile app install ads, and offers.
4. FBX is the only remarketing tool on Facebook
False! Facebook Exchange is the only method that enables marketers to retarget at an individual user and impression level on Facebook. However, there are additional ways to achieve remarketing goals through the Facebook Ads API. For example, connection targeting can be leveraged to remarket to people who have already Liked your Page or installed your app. In addition, custom audience targeting is a powerful remarketing tool. This leverages a marketer’s own CRM data (email address, phone number, user ID) and matches it with Facebook user profiles that include this same information, creating unique audiences to retarget.
5. FBX is only a retargeting tool
False! Facebook Exchange provides the opportunity to bid on ads in real time. This can be a great retargeting avenue, but it is not limited to retargeting as it can increase the return on ad spend for any Facebook advertising campaign. It can be used as a remarketing tool to convert browsers into buyers as well as a means to acquire new customers, such as by leveraging third party data or your own intent data across different domains. Nanigans recommends all its customers leverage FBX in order to increase ROI on their advertising campaigns, and we have released a one-click “Enable FBX” button within our Ad Engine software to make this as easy as possible.
We hope this article helps clarify differences between and opportunities across the Facebook Exchange and the Facebook Ads API!