What's Facebook's Plan to Draw Big Advertisers? An Ad Exchange.

By Steve Anderson June 14, 2012

Recent days have been less than smooth for Facebook, as big advertisers like GM have been pulling their paid ads and instead focusing on the social media marketing concept that Facebook helped launch.

But recent announcements from Facebook say they're not taking this lying down, and have a plan to get advertisers back in the paying ranks with an advertising exchange.

The advertising exchange, dubbed Facebook Exchange, is set to launch sometime in the next few weeks, and will give large companies an opportunity to deliver ads to Facebook users who have recently browsed those companies' websites.

A Facebook user who recently shopped for a computer on Dell's website, for example, could be shown a Dell ad when visiting Facebook. Some reports suggest coverage could expand from there, with users needing only to visit the site of an electronics retailer in general before seeing the advertising.

Facebook's approach resembles similar behavior launched by Google and Yahoo, in which advertisers can bid in real time for targeted advertizing. Oddly enough, the new Facebook exchange won't allow companies to buy mobile advertising, a development that's likely hurting Facebook as more and more of its users come in from mobile devices.

A Facebook spokesperson himself called the exchange a way that "advertisers can deliver more relevant advertising in a timely manner at a scale not possible before." Given the recent problems Facebook has had with keeping advertisers – and the continuing issues the company has faced in regard to its stock price since the IPO – it's clear Facebook has to do something to keep advertisers in the fold and paying, lest their major revenue streams dry up.

Facebook also has something of an unusual situation, in that more advertisers are discovering value in the social media marketing strategy. Getting likes and friends on Facebook has been shown to pay some substantial dividends, and considering the relative simplicity – not to mention cost savings – of such an act makes it especially attractive to companies trying to save as much money as possible.

Facebook facilitating ad buying – especially well-targeted ad buying – may serve to bring companies back into the paying fold, but there are many more moves the company can, and likely should, make to give themselves the best chance of selling paid ads for display to the masses of people using Facebook.

But any move in the right direction is a good move to make, and hopefully this will pay off for Facebook, enough to have them continue moving.

Edited by Braden Becker

Contributing TechZone360 Writer

Related Articles

Microsoft Introduces the Surface Book, Newest Surface Pro and Lumia Models

By: Joe Rizzo    10/6/2015

Microsoft revamped their lineup at this morning's NYC demonstration, with a clear challenge to Apple. Here are the most notable additions to the Micro…

Read More

Parks Associates Study Sheds Light on SMD Viewing Habits

By: Kyle Piscioniere    10/6/2015

Recent Parks Associates research has determined that U.S households with a streaming media device (Roku, Apple TV, Chromecast, etc.) consume four more…

Read More

Dorsey Named Twitter CEO a Second Time

By: Christopher Mohr    10/6/2015

Twitter announced recently that Jack Dorsey, who had been serving as the company's interim CEO the past three months, will continue in the same role o…

Read More

Who Will Save Sprint?

By: Doug Mohney    10/5/2015

Sprint has been on the skids for a while, a long slow decline due to a combination of bad decisions. Currently owned by SoftBank, it's an open questio…

Read More

Amazon Pulls Apple TV, Google Chromecast from its Store

By: Kyle Piscioniere    10/2/2015

The move is a blow to all three companies; Apple and Google lose the retail giant's highly visible sales platform, while Amazon loses the valuable ins…

Read More