Simpli.fi has become the second advertising company qualified to partner with Facebook (News - Alert) Exchange.
Facebook Exchange is the social media giant’s real-time online bidding platform. New York-based Chango was the first company to strike up a similar deal with Facebook last December.
Simpli.fi and Chango use the data gathered from people who use Google (News - Alert) to market more ads targeted toward a user’s previous searches. The agreement reached between these two companies and Facebook shows Facebook’s push toward capturing a market that has solely been controlled by Google in the past.
Both companies make use of tracking cookies to monitor users’ browsers while using the Internet. These cookies are used to see which sites users are clicking on, developing an instant strategy as to which ads appear on a page, in hopes of enticing a user to show interest in a product by clicking on the pop-up ad, once they start to use Facebook.
If a person is searching for a new camera, Facebook Exchange takes the information garnered by cookies while looking at such sites as Canon (News - Alert) or Nikon, and enters it into a data collection cell. When the user logs into Facebook, s/he is welcomed by ads featuring special offers and deals for cameras.
Google has been able to monopolize the shopping intent market, since it is a site geared toward people searching to buy products. It was a natural fit that has earned Google billions of dollars over the past few years.
When Mark Zuckerberg (News - Alert) decided to monetize Facebook for more profit, placing ads was an area that had few competitors. Since the social network gets one out of every five page views on the Internet, it was a logical choice.
But people do not use Facebook as a shopping site; therefore, Facebook Exchange was created to bring shopping to the people, rather than the other way around.
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Edited by Braden Becker