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Insider’s Guide to Retargeting with Facebook Exchange

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  • Insider’s Guide to
    Retargeting
    with Facebook
    Exchange
    Strategies, Case Studies, and Best Practices
    to Maximize Your FBX Campaigns
    FEBRUARY 2014
    PREDICTIVE LIFETIME VALUE™
    FOR PERFORMANCE MARKETING AT SCALE
  • INTRODUCTION
    Retargeting has become a must-have component of
    any performance marketing campaign as marketers
    have discovered the extraordinary value of reaching
    the 98% of consumers who didn’t convert on their
    rst visit to a website. Brands across the majority
    of verticals have achieved exceptional results by
    leveraging behavioral data from their websites for ad
    targeting.
    Concurrently, Facebook emerged as a powerful
    advertising channel boasting more than 1 billion
    users globally. Facebook won over advertisers with its
    innovative targeting capabilities and native ad units that perform exceptionally well
    because of their centralized location, ability to scale and high engagement rates.
    To capitalize on its massive inventory, Facebook introduced Facebook Exchange
    (FBX) in June 2012. FBX lets advertisers purchase Facebook ad inventory that
    retargets users based on their browsing behavior or intent shown on websites.
    Since then, FBX has grown to represent a signicant portion of retargeting
    ad spend—it now accounts for about half of retargeted clicks on the web.
    Numerous studies have shown that FBX delivers an astounding return on
    investment (ROI). On average, we’ve seen FBX campaigns achieve an ROI (return on
    ad spend investment) of 546%.
    However, there is some confusion about how advertisers can make the most of
    FBX to meet their ROI objectives at scale. In this latest eBook we explore:
    INSIDER’S GUIDE TO RETARGETING WITH FACEBOOK EXCHANGE NANIGANS.COM
    PREDICTIVE LIFETIME VALUE™
    Details on how FBX works
    Strategies and approaches for your
    FBX Campaigns
    Case studies on FBX performance
    A comparison of FBX to other
    exchanges
    Best practices for maximizing your
    FBX campaigns
  • INSIDER’S GUIDE TO RETARGETING WITH FACEBOOK EXCHANGE NANIGANS.COM
    PREDICTIVE LIFETIME VALUE™
    A consumer visits a product page on a brand’s website and a cookie is set on their
    browser. A request is sent to the Facebook servers to notify the DSP of when the
    user is on Facebook. Next, Facebook noties the DSP of the users presence, with
    what is commonly called a bid request. The DSP responds to Facebook with a bid
    and an ad creative, within 100ms of the initial request. Facebook holds an auction
    and if the ad wins the consumer sees a product ad retargeted uniquely to them on
    Facebook. The user clicks on the ad and purchases a product after seeing the FBX ad.
    Real-Time Marketing
    FBX powers time-sensitive advertising because ads are bid on and delivered to
    users in real time as people browse Facebook. This allows marketers to drive
    performance by targeting a user who for example, has recently browsed a hotel
    room on an online travel agency website with personalized ads immediately when
    they open their Facebook page. FBX is ideal for displaying the right product at
    the right time to the right user, increasing not only clicks, but more importantly
    consumer purchases.
    1 2
    3
    Customer sees a product
    ad retargeted uniquely to
    them on Facebook
    Customer visits a
    product page for a
    specic brand
    Customer clicks on ad
    and purchases a product
    after seeing FBX ad
    HOW FBX WORKS
    Real time bidding (RTB) helps media buyers nd audiences at scale with automated
    or programmatic buying that allows advertisers to bid on each ad impression as it
    is served. Facebook entered the RTB market with Facebook Exchange.
    FBX gathers data data from people’s interactions on external websites. Advertisers
    can then retarget Facebook ads to potential customers who previously browsed
    their site. Consumer behavior with FBX often works as follows:

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Insider’s Guide to Retargeting with Facebook Exchange

Insider’s Guide to Retargeting with Facebook Exchange

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