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Understanding Facebook's FBX — Social Media's First Ad Exchange

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Business Insider - KEY POINTS Facebook Exchange or FBX is the platform digital advertisers use in order to target Facebook users in real-time within Facebook, with ads based on their past Web browsing history. For example, an e-commerce site may target users in Facebook who showed interest in flat-screen TVs, but did not buy them. The real-time aspect of FBX is crucial. It's impossible to target a user who is interested in living room furniture with personalized ads when they open their Facebook page unless he or she can be identified and served a relevant ad in milliseconds. FBX is becoming a huge player in the real-time bidding space: Millions of ads are sold and purchased on FBX every second, and billions of impressions are served every day. Some ad buyers believe FBX has the potential to become a larger source of real-time bidding inventory than Google's AdX exchange. FBX inventory consists of two different ad types: Small display ads in the right rail and News Feed ads, which are slightl

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