Twitter will soon launch an ad exchange, which works by monitoring cookies on web browsers so advertisers are able to target ads at twitter users. The company decided to take advice from Facebook’s FBX ad exchange partners because their exchange has been a huge success for advertisers.
“It’s unclear how far along Twitter is in building the exchange, though Facebook managed to create FBX from scratch in a month. In keeping with the company’s measured approach to advertising, Twitter is performing its due diligence. Since at least late last year, the company has met with several FBX partners who are well-versed in locating on Facebook people who had previously visited a brand’s site and retargeting them with non-standard display ads on the social network, in hopes of luring them back to the brand site. It works by pinging a partner when a cookied user visits Facebook so that the partner can bid to target ads to that user on the social network. The talks are early but ongoing, and Twitter has not briefed potential partners on a planned launch date.”
Twitter’s ad revenue is pretty small considering the amount of time it has been around. Like Facebook, Twitter has also launched a number of ad products like interest-based targeting and ad API. It was estimated that the company will receive $528.8 million in ad revenue this year, but there may be a significant boost with the new ad exchange. (adage.com, businessinsider.com)