Facebook Exchange or FBX enables advertisers to retarget users after visiting their website, and according to new data, 50 percent of impressions are costing between 10 and 50 cents.
Details of FBX costs were revealed by advertising technology company Turn, one of the few companies with access to FBX data. The firm analyzed “billions of impressions” to reach its conclusions.
22.5 percent of FBX ads are purchased between a 10 and 20 cent CPM, and on average, the cost per thousand impressions or CPM is just 45 cents.
While the low costs are great for advertisers, Advertising Age says it could also be good news for Facebook:
But the low CPMs might not necessarily mean FBX is not succeeding. Online ad buyers are focused more on performance than views, according to the IAB, with 65% percent of media buys purchased on a performance basis. That said, while buyers are now purchasing FBX inventory at low CPMs, many might be backing the numbers into performance plans and could be quite happy with their investments.
Back in August, MDG Advertising found that FBX ads in the News Feed had a 49-time higher click-through rate than ads in the sidebar.
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