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Google selling FBX ads – what it means

Published: October 18, 2013

Author: Dennis Yu


So what’s behind this sudden (and downplayed, at least by the two main parties) union of Google and Facebook ads?
Simple– marketers and ad agencies are lazy. Facebook has to make it easier to buy inventory, and allowing DoubleClick into FBX makes complete sense. All else equal, I don’t want to have to use multiple buyers for my paid search and display.
Moreover, adding more bidders to FBX will increase competition and lift average CPMs. Facebook’s right-hand side (RHS) inventory has been at 60 cents, while general display inventory is often over $4, so there is plenty of room for price increases.
Programmatic ad buying and cross-channel marketing optimization are forcing these awkward partnerships.

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