Facebook to unveil real-time ad bidding
In a move similar to Google, social network Facebook is planning to launch real-time ad bidding for brands targeting consumers. Called Facebook Exchange, the service will enable advertisers to reach users based on their browsing history elsewhere on the web.
According to IDC, real-time bidding accounts for 27pc or US$5bn of the US$19bn to be spent online on ads in the US alone this year.
The idea behind the bidding is to allow advertisers to reach users based on time-sensitive opportunities, such as driving advertising to thousands of Ireland supporters before, during and after tonight's Euro 2012 match between Ireland and Spain.
Facebook will continue to offer advertising based on users' interests and 'likes', but the addition of bid-driven ads stokes up the competition against Google, Microsoft and Yahoo! and could be a major moneymaker for the social network.
People are the product - you are commodity
However, the new service - which may use technologies from MediaMath, Triggit and AppNexus - will base bid opportunities on browsing patterns of users on other sites, which only cookies can reveal.
In recent days Microsoft and Yahoo! came under the spotlight after investigative journalism outfit Pro Publica revealed they were selling user names, zip codes and other data belonging to their users to political campaigns without telling their users.
While selling ads based on browser history could be deemed an actual service in terms of better and more relevant targeting, Facebook could find itself under pressure once again to prove advertisers themselves are not being given this data.