Rumor has it that Twitter is prepping an ad-retargeting exchange to rival Facebook’s.
The practice works by locating people on the social network who had previously visited a brand’s site and retargeting them with non-standard display ads in hopes of luring them back to the brand site.
While Facebook didn’t launch Facebook Exchange (FBX) until last summer, after its IPO, it’s looking like Twitter might take the reverse route.
According to Ad Age, Twitter wants brands to buy directly on the exchange, and has been reaching out to multichannel retailers.
Some major advertising publishers have been adopting retargeting and exchange-based buying of late as they’ve grown more familiar with Facebook, Google, Yahoo, AOL, and other major digital ad platforms. So there are definitely dollars there for Twitter to court.
But is it a problem that Twitter’s pool of users is significantly smaller than Facebook’s? We’ll keep an eye on this story.