Facebook Makes Its Mobile Move by Chris Trayhorn, Publisher of mThink Blue Book, September 20, 2012 Facebook today began to allow its data to be used for targeting mobile advertising in apps and websites. This is an extension of its “ad exchange layer” concept in which, rather than creating its own ad network, Facebook instead layers its demographic- and interest-based targeting on top of existing networks. If you wanted to know how Facebook can monetize without annoying its users, then this is it. “Advertisers set a bid they’re willing to pay Facebook to reach a certain demographic of users. Meanwhile, Facebook syncs its anonymous user IDs with several mobile ad exchanges. When a Facebook user visits one of the apps or sites where these exchanges have placements, the exchange instantly sends Facebook that user’s ID and asks if there’s a bid set to target them. If so, Facebook pays the ad exchange some portion of the bid, and the ad is shown to the user.” More here. And here. Filed under: Mobile Marketing, Perform, Social Media Tagged under: Business Models, CampaignManagement, Featured, Industry Trends, Mobile, Social Media About the Author Chris Trayhorn, Publisher of mThink Blue Book Chris Trayhorn is the Chairman of the Performance Marketing Industry Blue Ribbon Panel and the CEO of mThink.com, a leading online and content marketing agency. He has founded four successful marketing companies in London and San Francisco in the last 15 years, and is currently the founder and publisher of Revenue+Performance magazine, the magazine of the performance marketing industry since 2002.