On Facebook there are two ways an exchange ad (FBX) can reach a customer; on the sidebar and in the newsfeed, but the performance of these ads vary according to an infographic from MDG Advertising.
The infographic, “A Marketers’ Guide to Retargeting on Facebook” from MDG Advertising, is made up of data from reports that appeared in Adroll, Inside Facebook, AdWeek, Nanigans, Spruce Media and Venture. It first explains what the FBX process is and how it works.
Launched in 2012, the FBX is a retargeting advertising program that allows users to place real-time bids on "ad inventory." For example, a Facebook user may visit a company’s website and then sign into Facebook. Based on this "customer intent data" from the website visit, marketers can re-target their ads. The ad partners include DataXU, MediaMath, AdRoll and the TradeDesk. These ads reach about 1.15 billion users a month, with about 699 million of these users being daily visitors.
From there the infographic shows how newsfeed FBX ads perform better than FBX right sidebar ads, while also comparing the newsfeed data to other web retargeting services.
Newsfeed vs. Sidebar
Facebook launched the right sidebar ads over a year ago. MDG Advertising described them as a type of ad that can "drive direct response." While a successful choice for many brands, there are some limitations with these ads, such as the inability of visitors to share ads and the interaction limited to the click through to the offer.
The newsfeed ad was found to be a better choice for advertisers and digital marketers. The newsfeed FBX was released this past May and besides viewers being able to comment, share and like the post, the ads can also be used for “content marketing and promotions taking advantage of its social components.”
Newsfeed in the Lead
Since viewers can interact more with newsfeed ads, the infographic then breaks down data metrics to show how well these ads have performed over the past few months.
Between the two kind of ads, newsfeed ads -- at 197 percent -- offer a better ROI than the right sidebar ads. The click-through rate for a newsfeed ad is 21 times higher than other web retargeting services and 49 times higher than the sidebar ads. As for the cost-per-click rate newsfeed FBX ads cost 79 percent less than web retargeting ads and 54 percent less than the right sidebar ads.
Click only cost per action rate also performed better than the other metrics. When compared with other web retargeting services, the cost for a newsfeed ad was 77 percent less and with sidebar ads it was 45 percent less.
Based on these results, the infographic suggests that perhaps it’s time for brands to reconsider the Facebook Exchange advertising platform and the placement of ads within the social network.