In the midst of its plummeting share price, continuous criticism and ever-increasing skepticism, Facebook is doing all it can to prove its value. In the coming weeks, the social media giant will unroll its most recent tool to help woo advertisers (and subdue naysayers). The service, Facebook Exchange, will introduce real time bidding for advertisers a la Google bidding. Prices will be on a CPM basis, and sold through 3rd party tech partners like MediaMath, Turn Inc and AdRoll.
Currently, advertisers target facebook users based on profile information and "likes." Facebook Exchange will help them reach a more behaviorally appropriate consumer in a more immediate way. Marketers will now be able to capture facebook users based on where else they've been on the web, and therefore better tailor their communications.
I suppose the larger question is whether or not this improved timing and targeting is the golden ticket to effective advertising. If facebook users are dismissing advertising now, is it simply because they're not being served the right messages? Will more pointed ads make users finally take notice, or even better, click on ads? My intuition is that consumers are disregarding ads not because those ads are irrelevant, but because the facebook environment is not entirely conducive to marketing distractions. I am often served ads that are (scarily) relevant, but I am simply not on Facebook to shop or to bounce around the web.
As Facebook Exchange is rolled out and metrics are taken, it will be interesting to monitor its impact both on advertisers and on consumers.
No comments:
Post a Comment