Facebook dumps web ad platform

written By benerg digital marketing agency | May 31, 2016
facebook exchange

Facebook released an official statement stating that from November, the social networking site is closing down the desktop advertising platform called Facebook Exchange or FBX. The FBX, from November, will not be available for advertising and Facebook is now trying to focus more on reaching out to the users with handheld devices. The company announced that it has already begun the process of transition for the clients, advertisers and partners over to the new products. The goal is to complete the migration by November 1, 2016.

Soon after the troubled IPO in 2012, Facebook business has become a mobile-centric business, acquiring popular services like Instagram and WhatsApp.  With over 80 percent of income is generated through mobile ads, the move by the Facebook has been proven to be profitable for the business.

In early 2015, Facebook Ads had reduced the number of partners who are eligible to buy the ads through FBX. Facebook seems to have prioritized focus over its user base. The third party vendors can still use Facebook Ads through its application program interface (API).

The ad inventory available through the FBX was only limited to desktop computers. It was available, mostly for the display ads that appear on the right side of the Facebook’s home page of the account holder. It is only imperative that Facebook has thought FBX is not a viable option considering the fact that the bulk of it traffic and revenue is through mobile devices. FBX does not also have video or mobile ads.

As mentioned earlier, the Facebook advertising has beefed up the “Audience Network” and has started selling the video Ads. The firm has been tweaking few of its technology offerings and has been trying to control over its ad offerings. Facebook has been aggressively working in the favor of media distribution business. It is also digital advertising-centric.

The intentions of the Facebook occurs to be focussed on the dynamic ads and custom audience so that they can target the customers on the Smartphone’s/tablets. According to a study out of 1.65 billion of its users, 92 percent of them are active on FB through the mobile devices. In the increasingly mobile world, the Facebook is looking to offer people more relevant ads and the businesses the more effective formats to promote.

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