FBX and the Future of Facebook Advertising
Published: April 1, 2013
Author: Daniel Ho
Earlier this week, Facebook announced that it will be extending its retargeting product, Facebook Exchange (FBX), into the News Feed, which expands the placement of these targeted ads beyond the network’s right-hand panel. Although this update is currently an “alpha test,” its upcoming release points towards a future with more powerful options and greater flexibility for advertisers. As said by our CEO, Rob Leathern, in a recent Forbes article, “It’s another step on the road to allowing advertisers to use their own data to target ads.”
FBX is known as one of the best-performing units available in digital media because of its ability to reach users who have demonstrated interest through their browsing behavior. By targeting users in a timely manner, FBX promotes engagement and sales very effectively, and it has been utilized in a variety of scenarios: retargeting abandoned prospects, increasing new customer acquisition, and promoting brand awareness.
The News Feed also represents a valuable piece of digital real estate, driving the strongest performing ads over any other location in Facebook. Likewise, Facebook also recently announced plans to revamp the News Feed with less clutter and “bright, beautiful stories”— another sign of the growing importance for this destination within the platform.
By marrying two of its most engaging offerings into a single product, Facebook has created an entirely new advertising option that combines high-performing features in one location. Now marketers have a second (or third) chance to make an impression on a potential customer—ultimately another shot at winning their business. Ads can be built to have the last word – to highlight benefits, address concerns, or simply become more memorable to customers.
Keep an Eye on the Maturing Landscape
The News Feed continues to be a meaningful destination for content; with appropriate timing and precise delivery, brands can effectively connect to their target audiences and drive engagement. As the Facebook News Feed begins to evolve as a meeting place for owned, earned, and paid media, the relationship among the three takes greater emphasis. Marketers must adjust in response to this evolution and take a more holistic approach towards allocating time and resources to these elements.
Also, retargeting remains one of the most valuable forms of targeting users because it incorporates the concepts of “recency” and interest, which is sometimes tougher to attain through other forms of targeting. It will be exciting to see if any other forms of inventory open up for FBX down the road, and how this affects overall FBX adoption rate.
Get Set Up with FBX
For users less familiar with FBX, setting up and buying FBX inventory is a very easy process. Working with an Ads API partner that has access to FBX (Optimal is one example of a provider), users only need to implement FBX pixels first to develop their retargeting pool and then buy FBX ads through the platform. One word of caution: marketers should not underestimate the time needed to develop their retargeting pool. Your targetable audience depends on the size of your retargeting pool. Depending on your site’s traffic volume, it may take time for your pool size to grow.
Therefore, to prepare yourself or your brand for FBX in the News Feed, we highly recommend the following in terms of pixel placement:
1) Start Early!
Even if you are unsure whether FBX will be a part of your campaign strategy, we would recommend implementing your segment pool first. Otherwise, you may need to wait for the segment size to develop before gaining any real traction with FBX.
2) Consider where your site traffic is located
SEO, social, and paid media are all responsible for driving users to your site. Think about where the users are going and place your FBX pixel there to develop your segment pool. Often, the larger your segment pool size becomes, the greater your opportunity to reach more people.
3) Segment your opportunities
Users who visit your product page may be more valuable than users who only check out your homepage. Consider setting up different pixels to create different FBX campaigns and deliver more personalized messages. If your site offers a significant number of products and offers, you may want to consider utilizing FBX dynamic creative optimization as well.
To learn more about the power of FBX, check out Optimal’s recent webinar, which features insight from leading experts in the industry.