by Molly Glover Gallatin
Facebook’s announcement about the launch of a real-time ad exchange, which enables advertisers to now target audiences using their own data and data from third parties is a significant event for direct response advertisers. The value here goes beyond merely adding Facebook inventory to retargeting lists. By combining socially derived audience insights with re-targeting, advertisers will now have a powerful tool at their disposal. For example, in addition to knowing that this user attempted to buy something on Amazon (which the re-targeting cookie provides), knowing that the user is a mother of two who likes several baby-related items and is a fitness enthusiast (which our socially derived insights provides), will allow an e-commerce merchant to serve highly relevant ads suited to this person and their current purchase intent. This level of relevance is far superior to that provided by search ads because it combines the "what the user wants" with "who the user is."
This announcement is significant for advertisers focused on driving transactions because whereas previously Facebook has been hyper-focused on using ads to drive users to pages within Facebook, this now provides a compelling means to drive users off-site to sites like Amazon and eBay to make a purchase.
We are excited about this announcement because Compass Labs is uniquely positioned to help advertisers achieve this level of precision and relevance. With our un-matched ability to precision target relevant audiences at scale across social networks, our CLIQ platform already provides much of the tools needed by advertisers and DSPs to maximize their effectiveness on Facebook. Now that advertisers can get further down the purchase funnel, conversions will increase along with the value of Facebook’s inventory. The addition of re-targeting makes Facebook an even more powerful advertising platform to reach over a billion users!
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