Brand owners will soon be able to bid in real-time to place ads on Facebook, based on users’ browsing history elsewhere on the Web.
The imminent launch of Facebook Exchange – which uses cookies to track other sites that users have visited – will see the ads sold by third-party brokers.
It is the latest effort from Facebook to boost its advertising revenue. Real-time bidding technology is already used by Google, Yahoo, AOL and other companies to target ads to consumers as they surf the Web. But this is the first time Facebook will let advertisers target its users this way.
The social media giant is to place cookies on the browsers of its users, although consumers can only opt out of through third-party ad brokers.
Analysts say the move could generate additional advertising revenue for Facebook. Prices will be based on the cost per thousand viewers.
EMarketer analyst Debra Williamson said: “The more Facebook can open up to different types of advertisers with different types of goals and make it easier for them to deliver targeted advertising, the better for Facebook.
“It will certainly open up Facebook inventory to companies that want to reach people in this manner,” she added.
