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2. What is Facebook
Exchange and
How It will
Work?

3. Facebook is most popular social
networking site, therefore, many
companies use Facebook Pages as a
way to market. To this point in time,
many companies have had good
success but are always looking for
ways to cherry pick the hottest
prospects.

4. Now, this dream may have become a
reality as the social media giant
recently announced it will begin
rolling out Facebook
Exchange. With Facebook Exchange,
companies can market to their Fans
using marketing cookies. Companies
have used marketing cookies for
sometime but what Facebook is
proposing is to offer real-time
bidding based on the user’s activity
online.

5. What is Facebook Exchange?
Facebook Exchange is the newest way
that advertisers can reach their niche
audience, which could end up becoming
the new way that advertisers get the
results they want. This feature will
offer a new advertising service that will
allow advertisers to retarget users and
bid in real-time based on a user’s recent
browsing activity.

6. Specifically, advertisers will be able to
reach users based on their browsing
history elsewhere on the Web. What
this means is that marketers will be able
to specifically advertise to people who
have shown interest in their product or
service based on their recent website
visits!

7. How exciting is this for marketers?
Facebook has stated that the
advertisers will be able to bid on a
specific ad impression, which targets a
user better than ads based on a
possible interest to a group. The
advertising in this case shows ads to
those that have shown interest in
something similar they had previously
showed interest in.

8. The key feature of this new exchange
system is the cookie is not dropped on
the user’s computer unless he or she
has actually showed interest in
buying. For instance, a user that
appeared to be booking travel plans
on a specific site but did not actually
make the purchase could then be
shown ads on Facebook that would be
similar, which is retargeting the user.

9. Not only that, but they could be
setting a new trend for specific
marketing to individuals that could in
fact, have a huge impact on how
online marketing and advertisement is
carried out.

10. How Does Facebook Exchange
Work?
According to TechCrunch.com, here’s
how Facebook Exchange works:
1. A user visits a travel site that’s hired
a DSP rigged up with Facebook
Exchange
2. A cookie is dropped on that user’s
computer, typically when they’ve
shown purchase intent

11. 3. If the user fails to make a purchase,
or the advertiser wants to market to
them more, the DSP contacts
Facebook and gives them the user
they wish to target’s anonymous
User ID
4. The advertiser pre-loads creative for
ads that would target that user
5. When the user visits Facebook it
recognizes the cookie dropped by the
DSP

12. 6. The DSP is notified and allowed to
make a real-time bid to show the user
ads
7. The DSPs with the highest bids get
their highly-targeted ads shown to the
user
8. If the user disapproves of being
shown the ad and ‘X’s it out, they’re
shown a link to the DSP where they can
opt out of future Facebook Exchange
ads