Facebook’s FBX decline signals broader advertising strategy

As a social media conglomerate with troves of consumer data, Facebook is about to make a huge play in the social media space. (Watch out, Jack Dorsey.)

Consider Facebook’s recent announcement to publicly drop more than half of its partners, a total of 15 companies from its Facebook Exchange (FBX), signifying a serious shift in advertising strategy.

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What does this mean for digital advertisers and how will this influence social advertising more broadly?

Selina Petosa, founder and Chief Creative Strategist of Rational Interaction, contends that Facebook will be (if it isn’t already) making a larger play in the media space by actively strengthening its capabilities for real-time bidding, API integration, and audience targeting and retargeting. Facebook is armed with an astronomical amount of audience/consumer data as well as built-in customer relationship management. But the real miss here is with the other major social platforms – Twitter and LinkedIn.

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Rational executives recognize that they have not seen any significant improvements with either of these platforms capabilities or offerings and frankly, it’s a bit too late to catch up.

In terms of the impact of the overall industry, Facebook owns so much consumer data, and over two million advertisers rely on the platform so Facebook has the opportunity to solidify their authority in the advertising space. Twitter and LinkedIn must combat Facebook’s ad strategy soon, because Facebook is strategically focusing on building its own RTB capabilities, leaving other social networks as an afterthought for advertisers.

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