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Facebook confirmed yesterday that it will be shutting down its ad exchange, FBX, which, since 2012, has allowed third-party ad technology companies to purchase ads on the social network.
A few quick takeaways for Facebook advertisers who now won’t have access to the retargeting functionality of the exchange:
- It won’t affect mobile. Facebook has spent years investing heavily in driving revenue from mobile by creating higher-performing advertising features. And it’s worked; in Q1, Facebook reported that 82% of its advertising revenue came from mobile. FBX, which is only available for desktop buys, is a far less significant removal than it would have been even a year ago.
- It’s not surprising. Along with the mobile-themed writing on the wall, Facebook has been reducing the number of partners eligible to buy FBX inventory over the last year.
- There are more effective ways to retarget users on Facebook. Anyone who invests in remarketing on Facebook understands how important the channel is for reengaging with existing customer and site visitors. At 3Q, one of our top-performing features across all social accounts is website custom audiences (WCA), which allows us to remarket to people who have visited our clients’ websites. We use WCA for the majority of our remarketing and won’t be affected by the FBX shutdown, and I’m assuming many advertisers are in the same boat. Those who have been reliant on FBX will certainly go through a transition period, but I’m guessing the tough love from Facebook will pay off in the end as advertisers are forced to adopt other (better) tools.
Do you have any reactions to the FBX shutdown? Leave a comment!