With the increasing use of social media networking and Facebook’s popularity is it any wonder that changes are coming? Facebook Exchange is one that advertisers will love but what about the people who use it daily as a means to stay in touch with family and friends? The question that is on a lot of peoples mind is whether they will be bombarded with ads. This is another change in store for Facebook that is meant to increase their revenue, but with the changes they have already had will this one be good, bad, or ugly?

“Facebook already leads the overall US display advertising market which totaled $12.4 billion in 2011, with the social network’s share of market revenue growing to 14% in 2011 from 11.5% in 2010” says TechCrunch. With over 845 million active users monthly on Facebook social networking site, is it any wonder that more changes will be seen from social media marketing? People love being able to connect with friends and family. More and more businesses are using it as a means to connect and share with customers and employees as well.

Many Facebook users don’t like the idea that a site they use to connect with others may leave them feeling as though they are being bombarded with ads. They also don’t like having more cookies dropped so that they are targeted for specific ads. There is also the question of just how much of their personal information will be shared and just who has access to this information. Facebook Exchange will have a way to opt out, but it isn’t as easy as one simple click and you are done.

Steps for Facebook Exchange per TechCrunch

  • User visits a travel site that is set up with Facebook Exchange
  • A cookie is then left on the user’s computer
  • No purchase was made when user was at the site but the advertiser wants to continue marketing to them. The DSP contacts Facebook with the target’s anonymous User ID.
  • Creative ads for the product or service for that advertiser specific to that user are preloaded.
  • Once the user visits Facebook it sees the cookie dropped.
  • DSP is notified and makes a real-time bid to show that specific user ads
  • DSPs with the highest bids gets ads shown to the user
  • Users that don’t want to be shown these ads would need to follow a link to the DSP to opt out of future Facebook Exchange ads.

Facebook Exchange – good, bad, or ugly? You decide! Many people feel that Facebook is a social networking site meant to connect with others that offers mostly unwanted ads, but there has to be revenue to keep the site going. If Facebook makes more than a little income from the ads then that is business. Leave a comment and let us know at Posse Social Media how you feel about Facebook Exchange.