Facebook has decided to shut down its Facebook Exchange in favour of moving advertisers over to newer products. The move is part of a larger strategy to focus in on its mobile-first advertising services. The Exchange will be made redundant by November 2016 in order to focus on ad products including Dynamic Ads for Carousel and video campaigns.
Facebook Exchange to be shut down
Matt Idema, VP of monetization product marketing, Facebook, confirmed that the company is moving its clients and advertising technology partners over to newer products. Given that mobile accounts for 82% of Facebook’s overall ad revenue, and the success of its mobile products, many marketers have already made the move. He adds:
“Mobile is now a necessary component of effective marketing campaigns, and Facebook is helping millions of businesses understand their customers’ purchase path across devices. Dynamic Ads and Custom Audiences have mobile at their core and are delivering excellent results for businesses, so Facebook Exchange spending has shifted towards those solutions.”
The company launched Facebook Exchange back in 2012 which noted strong results initially, such as a 50% decrease in cost per click and for some advertisers a 200% ROI.
However, there can be little doubt that mobile is where it’s at. Facebook has been busy revamping its Audience Network and added features such as video ads. For Q4 2015, the Audience Network may hit an annualised run rate of $1bn.
Overall, it seems Facebook Exchange has become too small a part of the company to continue. Idema adds:
“As people have moved to mobile and spend more of their time using Facebook and Instagram and the Audience Network on mobile versus on desktop, that’s really been the arc of the potential impact of desktop retargeting in general. As mobile has become a larger part of our business, desktop has become a smaller and smaller part of our business.”