As Facebook’s new FBX exchange kicks into gear the networks brokering the inventory are reporting that the market rate for the retargeted ads are significantly higher than Facebook’s traditional display rates. That isn’t a surprise – retargeted ads convert much better than even highly demo-targeted ads – but what’s interesting is the idea that eventually retargeting may account for most of Facebook’s inventory.
Business Insider has more:
Because they are clicked on so much—and because those clicks so often lead to sales, re-targeted ads are valuable, and publishers are able to charge advertisers steeper rates for them.
That’s good news for Facebook.
How good?
Zach Coelius, CEO of Triggit, one of the ad-reselling companies Facebook has invited onto FBX, says that return on investment for advertisers buying through FBX is so good, that if all of Facebook’s ad inventory were sold with re-targeting, instead of user data targeting, Facebook would be able to charge 3X the price it charges for ads right now.