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Facebook launches 'Facebook exchange' for real-time ad bidding
Facebook launches 'Facebook exchange' for real-time ad bidding
By: iMedia News Bureau

Soon after launching integration with WordPress for the bloggers, Facebook has come up with a new tool but this time it is not for the users.

Facebook is getting more aggressive about advertising.  The social network plans to launch Facebook Exchange, a real-time bidding platform, in the next few weeks. The news was first published by Bloomberg.

Advertisers will be able to target ads to Facebook users based on their browsing history, through this service. The new service is also designed to let advertisers deliver more time-sensitive messages.

Real-time bidding is a different sort of beast from the pre-paid ad model most people are familiar with. The bidding component is simple: Advertisers vie for a particular ad spot, and whoever offers the most cash wins the prize.

Google, Yahoo, AOL and other companies already use Real-time bidding technology to target ads to consumers as they surf the Web. But this is the first time that Facebook is enabling advertisers to target its users this way.

The ads will be served through third-party demand-side platforms (DSP) including AppNexus, DataXu, MediaMath, AdRoll and Turn, and will be priced based on the cost per thousand views.

Facebook will continue to deliver ads based on user "likes" and interests, though these won't be factored into the bidding process. Users won't be able to opt-out of the program from within Facebook, but can do so via third-party vendors.

For Facebook, the new exchange means more revenue potential from advertisers looking for more ways to reach users they’ve tracked elsewhere on the Web. It could also bring the social network one step closer to creating the Web wide ad network that many think is on the way. 

Facebook shares have slid nearly 30% since the company's initial public stock offering last month as investors worry that advertising revenue won’t keep up with its user base. The Menlo Park, Calif., company -- which has more than 900 million users worldwide -- generated nearly $3.2 billion in advertising revenue last year.  The social network had rolled out mobile ads recently.