Facebook (NASDAQ:FB) announced Wednesday it plans to launch Facebook Exchange, a real-time bidding platform for advertising on its site, not unlike that used by Google (NASDAQ:GOOG) and other Web companies to more effectively target ads to consumers.
The service will allow advertisers to target ads to users based on their browsing history, Facebook spokesman Annie Ta told Bloomberg. The apps will be served through third-party demand-side platforms (DSP), including AppNexus, DataXu, AdRoll, Turn, and MediaMath, and will be priced based on the cost per thousand views. The new service is also designed to let advertisers deliver more time-sensitive messages, according to Bloomberg.
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“By bidding on a specific impression rather than a larger group, advertisers are able to show people more relevant ads while
also running more efficient and effective campaigns,” the company said in a statement. Facebook uses a travel site as an example, as it could target an ad to a Facebook user who searched for a flight but did not complete the booking.
However, advertisers will have to rely on their own in-house data or information supplied by data partners — Facebook will not be sharing data about user activity. Furthermore, the social network said users will still have the same control over ads they see on Facebook as they do now.