Facebook Exchange allows marketers to use real-time customer data to reach a larger audience on Facebook. Essentially, if a person visits a website, but does not buy anything, that business can retarget those people the next time they go on Facebook.
RadiumOne will be combining its audience amplification layer ShareGraph with Ad Exchange.
ShareGraph analyzes how Internet users interact with their friends on social networks, in order to deliver the most relevant ads. It looks at how clusters of close friends interact on social networks, namely those who are interacting regularly as opposed to those who are distant friends or merely acquaintances. As users interact with their intimate circle of friends, the service uses this information to deliver ads to users for brands and products that their friends like.
ShareGraph sees more than 25 billion real-time impressions we see each day.
By combining with Ad Exchange, RadiumOne says it will be able to deliver greater reach, higher audience relevance, and increased efficiency. In addition, the integration will enable RadiumOne to "extend beyond the 75% of connections the company currently reaches on the web, and into Facebook where 20% of web page views are taking place."
In a blogpost, Gurbaksh Chahal, CEO of RadiumOne, called Facebook Exchange “one of the most exciting innovations we’ve seen in the digital ad space in the past few year.”
“FBX’s inventory is massive and highly valuable for advertisers. By combining existing ad buys with real-time Facebook inventory, advertisers will get near instant campaign performance. This means a more holistic conversation with consumers on the web and Facebook – it’s the complete audience approach,” he wrote.
San Francisco-based RadiumOne was launched in October 2010. In March 2011, it announced the close of a $21 million Series B round of funding, led by Crosslink Capital, with participation from DFJ Esprit and existing investors Adams Street Partners and Trinity Ventures. This round brought RadiumOne's total funding to date to $33.5 million.
Facebook Ad Exchange debuted in June, and came out of beta in September. In that short time, the success of Facebook Exchange was already being touted by multiple companies who used it, including AdRoll, TellApart and Triggit.
According to AdRoll, its 60 advertisers who launched campaigns on Facebook Exchange, including Room & Board, HootSuite and GoPro, saw a 16 times rate of return on their investments, while TellApart said that its clients saw a 10 to 20 times return on investment. Users who were shown ads on Facebook Exchange, were as likely, or more likely, to click through than other ad exchanges. Facebook Exchange had an average click through rate of 6.6%.
Triggit wrote that Facebook Exchange had seen return on assets that are four times higher than traditional ad exchanges. It also has a post-click conversion rate that was 2.2 times higher, and a cost per click-through order that was 6.5 times less.
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