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Facebook Launches New Retargeting Capabilities

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Facebook RetargetingNew retargeting options are coming to Facebook that won't force you to go through FBX (Facebook Ad Exchange). Advertisers will no longer need to manage their Facebook retargeting campaigns through demand-side platforms (DSPs). Advertisers will now be able to manage retargeting programs directly through Facebook's interface.

Currently, through FBX, advertisers can only serve their ads on desktops within the news feed or on the right rail. Advertisers also have to buy their ad space through DSPs. With tens of millions of users accessing Facebook on their mobile devices each month, this new feature will allow advertisers to target individuals on their mobile devices.

The New Features

Custom Audiences will allow advertisers to set up retargeting campaigns directly in Facebook's interface. Advertisers will also be able to overlay standard Facebook targeting options such as demographic information. This is something that is not currently available within FBX through DSPs and provides a distinct advantage.

This advertising option will also be available to target mobile devices, which make up a large share of impressions delivered on Facebook. Essentially you'll be able to retarget across multiple devices due to users needing to login to their Facebook account.

What FBX Still Does Better

While Facebook added features such as allow retargeting ads on mobile devices as well as overlaying traditional targeting tactics, there are a few ways FBX trumps this new option.

One of those is predictive buying – if an individual continuously browses for a certain product or service, FBX's predictive buying capabilities will allow advertisers to show an ad that matches what the consumer has been looking at.

How Does This Help Advertisers

The control and optimization efforts can now be done directly in the Facebook interface. While DSP's can be great for automated bidding, if you happen to run a direct response type of campaign, having those bidding controls available to your PPC manager can be beneficial.

Being able to overlay the standard targeting options within Facebook will also present advertisers with a great opportunity. If you know a certain demographic makes buying decisions or purchases, you'll be able to add that level or targeting on as well, increasing your chance of conversion.

Why Did Facebook Make This Move?

By working through DSPs, a significant amount of the revenue generated by ads on Facebook was heading to the DSPs. Facebook Chief Operating Officer Sheryl Sandberg said FBX generated "a very small part" of Facebook's revenue.

This move will help keep more ad revenue in house with Facebook and not heading off to the DSPs. This also opens up retargeting to the mobile space on Facebook which should present significant revenue opportunities as well.


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