Digital Insights

Facebook Exchange – To Bid or Not to Bid?


Published: September 11, 2012

Earlier this year Facebook announced its plans to launch Facebook Exchange. Well friends, the wait is over because FBX is officially here and the DigitalEYE team would like to share our thoughts on this “new and improved” way of targeting Facebook users using a DSP (demand side platform).

Facebook Ads vs. Facebook Exchange

Facebook Ads and the use of DSP’s are nothing new to the digital community – DSP’s are used on a plethora of websites, most notably on Google. So what is the difference between a Facebook Ad and the Facebook Exchange? When you a purchase a Facebook DSP ad space you are taking a shot not in the dark but in a dimly lit room. Although your ad is not being spammed to every Facebook user, target demographic is only being determined by the pages that users have liked and are listed on their profiles. Using the Facebook Exchange, on the other hand, is taking a shot in a well-lit room. When you use FBX, your ads are not only being targeted to users that have liked your Facebook fan page but that have previously visited your site or similar sites. By using FBX vs. Facebook Ads, companies should see not only higher click through rates but an increased number of click throughs that translate into sales.

How does it work?

FBX works as a real-time bidding platform (essentially ebay bidding for ad space). The company who places the highest bid at a certain time wins the DSP space. For example, a user on Facebook opens a tab in their browser to search for digital cameras and clicks through to The site then drops a cookie to the users browser and the DSP receives a complementary cookie. can then bid on the DSP ad space along with its competitors.

To Bid or Not to Bid?

Still not convinced that FBX is for you? We say go for it. The team has always been a fan of Facebook ads and we are even bigger fans of FBX. Facebook is one of the most visited sites (the majority of your potential customers are probably checking their newsfeeds right now) and in our opinion one of the best channels to digitally advertise.