Facebook expands ad targeting system to its newsfeed

SAN FRANCISCO Wed Mar 27, 2013 5:28am IST

A women works with her computer which displays Facebook logos on the screen in Bordeaux, Southwestern France, January 30, 2013. REUTERS/Regis Duvignau

A women works with her computer which displays Facebook logos on the screen in Bordeaux, Southwestern France, January 30, 2013.

Credit: Reuters/Regis Duvignau

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

SAN FRANCISCO (Reuters) - Facebook Inc (FB.O) is expanding the advertising system that lets marketers tailor messages to users of the No. 1 social network based on their browsing history, in the company's latest step to refine its ad business.

So far, the system has been used to target graphical display ads on the right side of a Facebook user's page, based on websites visited in the past, such as for products or potential vacation destinations.

The move announced on Tuesday will incorporate this system, called Facebook Exchange, to the ads in Facebook's News Feed.

It ties together two of the most significant innovations that Facebook Inc has made in the past year to its advertising business, which accounts for roughly 84 percent of the company's revenue.

Marketers last year welcomed the launch of Facebook Exchange as it provided a common online advertising technique long missing on the social network.

Ads that appear directly within the Facebook News Feed are considered crucial to its future business prospects since they can be seen on mobile devices such as smartphones. About two-thirds of Facebook users accessed the site on a mobile device in December.

Facebook said the Facebook Exchange system will initially be available for newsfeed ads that appear on desktop PCs but not on mobile devices.

"Desktop is more in line with what FBX (Facebook Exchange) has been doing effectively in the right hand side. And we also find that desktop is the place where more people convert from seeing direct-response ads," said Facebook spokeswoman Elisabeth Diana.

The company is testing the new service with a limited set of partners, with plans for broader availability in the coming weeks.

Shares of Facebook closed 7 cents higher at $25.21 on Nasdaq.

(Reporting by Alexei Oreskovic; Editing by Richard Chang)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Apple

REUTERS SHOWCASE

Hacking Threat

Hacking Threat

All at sea: global shipping fleet exposed to hacking threat.  Full Article 

Mt. Gox Update

Mt. Gox Update

Tokyo Court orders bankruptcy trustee to begin Mt. Gox liquidation .  Full Article 

Net Neutrality

Net Neutrality

U.S. regulators to propose new net neutrality rules in May.  Full Article 

Facebook Results

Facebook Results

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article | Related Story 

Huawei Shrugs

Huawei Shrugs

China's Huawei says reports of NSA spying won't impact growth  Full Article 

Betting on Content

Betting on Content

AOL, Microsoft lure advertisers with TV-style shows.  Full Article 

Restructuring Plans

Restructuring Plans

Zynga's Pincus withdraws from operations amid turnaround.  Full Article 

Security Threat

Security Threat

FBI warns healthcare sector vulnerable to cyber attacks.  Full Article 

Online Streaming

Online Streaming

Amazon grabs rights to stream older HBO shows.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage