Facebook Exchange, or FBX ads, enable businesses to target consumers based on their online browsing interests outside of Facebook. Previously limited to the right sidebar, this ad unit is slowly making its way into the News Feed — and early results look promising.
Following news that Facebook is expanding the test of FBX ads in the News Feed, Nanigans, one of the alpha testers, released some of the data it has collected along the way. According to the early study, retargeting ads that appear within News Feed deliver an average increase ROI of 197 percent, compared to those on the right-hand side.
In fact, Nanigans found that on average, FBX ads in News Feed had 17.1 times higher clickthrough rates and 51 percent lower cost-per-clicks. This was discovered after analyzing more than 10 million ad impressions from a variety of retailers between April 18th and May 6th.
For brands, the benefits don’t stop there. Compared to other exchanges, FBX offers lower costs per acquisition and ads that appear above the fold and on “brand-safe” pages. In general, News Feed ads tend to perform better than their sidebar counterparts, likely because they’re harder to ignore.
That said, advertisers and Facebook will have to find a happy balance. As more ads find their way into the News Feed, members might be less likely to interact with them. If you’re currently running one or more ad campaigns, test new ads using Unpublished Posts, and make sure that you’re also balancing promotional material with engaging content that won’t turn away fans.