Facebook to Start Using Your Browsing History For Advertisers

facebook exchangeEver since Facebook went public, they have significantly increased their advertising with a wide variety of new advertising options such as new Facebook mobile options, so it comes at no surprise to hear that Facebook will be using a more sophisticated form of delivering advertisements to users.

Bloomberg announced the Facebook service called Facebook Exchange yesterday which will allow Facebook advertisers to deliver specific ads based on where they have browsed on the Internet outside of Facebook.  This will be done by having the Facebook Exchange program place cookies, or a small piece of code on third-party websites. After you have visited these 3rd party sites with this cookie, you could see ads on Facebook based off of that cookie.  For example, if you visit are in the market to buy a new cell phone and have previously visited  cell phone related websites, your browsing history will be remembered by the Facebook Exchange cookies that was installed on the sites you visited.  Once you log in to Facebook afterwards, you will likely see Facebook advertisements related to cell phones.

This will likely increase conversion rates for advertisers.  Up until the Facebook Exchange program, Facebook advertisers could primarily only target users based off of their interests that the Facebook user put in their profile. This has been a service that Google has been doing for a while to effectively target ads.

Facebook Exchange Pricing

Facebook spokeswoman, Annie Ta said, “Prices will be based on the cost per thousand viewers and spots will be sold via-third party technology partners.  It will debut within weeks.”  The partners that will be selling these type of ads will include AdRoll, TellApart, Turn, Trigit, DataXu, MediaMath, AppNexus and The Trade Desk.

Facebook Exchange Privacy Concerns

Many Facebook users may be concerned with invasion of privacy with the Facebook Exchange program collecting data from users browsing 3rd party websites.  Facebook users concerned with this can opt out of this by disabling cookies on their browser.

Does this new form of Facebook advertising concern you? As an advertiser, will you be using this as part of your social media marketing strategy?

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