Facebook Exchange ads enter News Feed; limited to desktop and select DSPs for now

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By Jonathan Espinosa Comments

fbxFacebook has launched a small test to introduce Facebook Exchange Ads in its News Feed on desktop, according to the Facebook Studio blog.

The company is working with a small group of demand side platforms (DSPs) including TellApart, MediaMath and Nanigans. It has also said it will begin making the ads available for more DSPs and advertisers in the coming weeks.

The new retargeting ads will appear in the News Feed only on desktop. Facebook has yet to introduce mobile retargeting into the FBX. Previously, Facebook Exchange ads were reserved for the right ads column which only appear on desktop.

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The ads will appear in the News Feed the same as any other page post ad or Promoted Post bought through Facebook’s internal platform. Users will not be able to differentiate if the ads were purchased through the FBX or Facebook’s internal platform. Like previous FBX ads, Facebook’s format places a number of restrictions on creative, where advertisers might be used to more dynamic rich media ads on other exchanges. However, the new format introduces options for users to Like, share or comment on an ad, whereas previously users could only click on the ad and be taken to a third-party site.

The social network says number of ads in the News Feed will not increase from this change. With more advertisers bidding for placement, however, ad prices could increase, especially because FBX advertisers are targeting users who might be more valuable because they are further down the purchase funnel.

As the News Feed is where users spend the most of their time on Facebook, ads in this space have much greater engagement numbers and results. Facebook Exchange ads have also shown early promise. The combination of retargeting and front-and-center placement could give advertisers — and Facebook — a big boost. By placing FBX in the News Feed, marketers will be able to make more valuable impressions, even if it is only available on desktop for now.