Three months before, Facebook started testing a new ad retargeting tool called Facebook Exchange or FBX. It was running in the beta mode for last three months and after having great success in beta mode, it has been launched finally.

What is Facebook Ad Exchange ?

It’s a real cookie-based ad targeting system that works based on the cookies of user’s system and then displays the relevant ads in real time on Facebook. Facebook is working with no. of partners including AdRoll, AppNexus,  DataXu, MediaMath, Nanigans, Brandscreen, Criteo,  Kenshoo, Xaxis, Tellapart, TheTradeDesk, Triggit, Optimal, RocketFuel, Turn, and X+1. With the combined service of all these partners advertisers can access capabilitis like  multi-touch attribution, global frequency capping, view-through conversions, day-parting, and creative optimization.

The Facebook is already serving 25 percent of total Internet ads and this new ad targeting tool, the Facebook Exchange will not only help the Facebook to grow more, but will help the advertiser as well, as the real time ad display will increase the relevancy of ad and thus will help in growth of their business due to high CPC.

Who Should Use It ?

The advertisers will observe a great growth in their business through this system but don’t be in misunderstanding that it’s for all type of ads that you see on Facebook. This tool will be applicable to sidebar ads only and not to mobile ads and sponsored stories. If you wanna use it and don’t know how to do it, then you can read out the complete guide for it, here.

But this will not prove effective for every advertiser as Facebook says

“Facebook Exchange is perfect when the objective is a conversion outside Facebook and the data used to drive that objective exists outside Facebook. When brand goals like increasing awareness and favorability are the objective, Facebook’s native tools are usually a better fit because they work with all our social formats and placements in addition to fan targeting.”

Well, it will be interesting to see that how Facebook Exchange (FBX) will effct the advertising ecosystem.