Facebook Exchange: A New Way For Advertisers To Target Specific Users With Real-Time Bid Ads

Facebook is testing and will soon launch Facebook Exchange, a real-time bidding ad system where visitors to third-party websites are marked with a cookie, and can then be shown real-time bid ads related to their web browsing when they return to Facebook. This retargeting option could be a huge money maker for Facebook as it will allow for more relevant direct advertising.

For example a travel site could serve ads about a flight to Hawaii to someone who almost bought a flight on their site. Advertisers might pay big premiums for highly-accurate targeting.¬†Users will be able to opt out of Facebook Exchange via third-party demand-side platforms, but they can’t opt out of the program completely from within the social network.