On November 1st, Facebook will disable FBX, its real-time bidding ad system that enables advertisers to purchase desktop ads with third party networks and demand-side platforms. Launched in 2012, FBX allowed advertisers to utilize 1st party and 3rd party data to reach desktop only audiences within Facebook. With 82% of its advertising revenue now coming from mobile, Facebook plans to close its desktop ad exchange and instead, has expanded FAN (Facebook Audience Network), which not only permits advertisers to bid on mobile and desktop users on Facebook, but also targets those on mobile sites and apps outside of its platform.
This move signifies Facebook’s continued focus on mobile, and is consistent with the ongoing trends in digital consumption. Former company insiders claim that it was only a matter of time before Facebook abandoned the one component that gave outsiders some control of the ads platform. With this change, Facebook has taken a significant step toward becoming more of a walled garden. Marketers will have no choice but to make the necessary adjustments to ensure they are still taking full advantage of this very powerful marketing tool.
"When Mark Zuckerberg decertified more than half of the top data and marketing cloud providers from the RTB exchange in February of 2015, our team knew the writing was on the wall," states Nicholas Galante, Director of Programmatic. "This move signaled the end of open door data pass back and ownership, and cemented the walled garden officially within Website Custom Audiences. Since last year, Direct Agents has adopted WCA agency wide through API integration with our partners, and continue to leverage the world's largest Social platform to drive marketing performance at scale. "
What does this new announcement mean for your business? Contact us to learn about how your campaign strategy should be adjusted to fully maximize your performance on Facebook & Instagram.