This morning social ad network RadiumOne is announcing an integration with Facebook Exchange, the social network’s real-time bidding ad engine that allows advertisers to use insights from the open web while marketing to users inside Facebook.
In other words, ad retargeting of Facebook users based on pages they’ve visited elsewhere on the web.
I spoke to RadiumOne chief executive Gurbaksh Chahal about the announcement. He’s excited about the integration, because it allows his company, which previously targeted only the open web, to now target the 20 percent of the web’s page views that happen behind Facebook’s closed doors.
And he’s excited because now he’ll be able to offer much higher-performing ads to his clients.
“The problem with Facebook,” he said, “even though everyone thinks they have so much data on you and they’re the next Google … is that recency is a big factor.”
In other words, Facebook has an immense amount of inferred data — you like Led Zeppelin, boats, and skiing — that you’ve provided to the social network at one time or another. But the web continues to evolve and change … and so do people. Particularly when they’re at decision points on purchases.
That’s, of course, the rationale for the creation of Facebook Exchange, which enables advertisers to combine Facebook demographics with web real-time data. And that’s where RadiumOne shines, according to Chahal, saying that RadiumOne has its own data access, including previously visited pages, comments, links, and reviews, and already reaches 700 million unique web surfers a month, with 25 billion ad impressions every single day.
Integrating with Facebook isn’t just a major product opportunity. It’s also a seal of approval.
“Facebook has been very careful in picking people who will add value to the Exchange,” Chahal said. “There’s like 400 ad networks who are all just arbitraging, but Facebook is being very selective, only adding about 20-25 partners.”
This gives RadiumOne new opportunities with its clients, who already either are, or want to be working with Facebook.
“It’s pretty clear when you have a billion users on your platform you become a must-buy,” he said. “And if you’re buying on Facebook already, we can help you use the Facebook Exchange and become much more effective.”
Programmatic buying — automated bidding and purchasing — will be a $2 billion business this year, sharply up from $700 million last year. Over the next several years, Chahal says, it will grow to $7 or $8 billion.