Launched last fall, Facebook Exchange (FBX) is a way for businesses to show ads to people on the social network based on their online browsing interests. Today, the company launched a small alpha test that introduced FBX-targeted ads in News Feed.

This is a significant change to Facebook’s advertising product. Previously, FBX ads were limited to the right-hand column of the website. According to Facebook, its members spend the most amount of time in the News Feed, so it makes sense to give advertisers and agencies the ability to deliver the most relevant ads here.

Starting today, you can now run Page Post Ads on the right-hand side of Facebook and in News Feed on desktop. Instead of targeting audiences based on behavior, Facebook is guaranteeing delivery of your ad to someone who has visited a specific website.

It’s unlikely that consumers will notice the difference between a retargeted ad and a Sponsored Story. And it’s also worth noting that this will not change the number of ads people see in their News Feed. The main difference is that when clicked, individuals will be sent outside of Facebook to a landing page.

The social network believes this will create more relevant ads for people, which could lead to higher ROIs. Early results show that FBX ads give a 16-time return on investment to advertisers, according to AdRoll, one of Facebook’s partners for the initial rollout.

Currently, Facebook is focusing this test on desktop; mobile platforms aren’t supported. The company is working with a small number of demand side platforms, but plans to expand to additional DSPs and advertisers over the “coming weeks.”

[Via: TechCrunch, Image credit: woodleywonderworks]