Social networking site Facebook Inc (NASDAQ:FB) will start to target users’ activity outside of the site and then present ads to them based on the interest they show.
Facebook Exchange is the feature that will be used to do this targeted advertising. On Thursday the company said that Facebook Exchange has moved out of its beta testing stage and is ready to be launched commercially.
The technology that will be used by Facebook enables it to track what users or visitors to its site do when they leave Facebook and tracks their activities online.
Based on the data collected these customers will be targeted by relevant advertisers.
Incidentally, when Facebook had earlier announced this feature it had raised concerns about privacy, since it meant that the company would be able to track what users are doing online even after they logged out of social network platform.
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So even if a user has logs out of his or her Facebook account, the software embedded in it enables it to keep tabs on what the user is up to online. This information is fed back to the Exchange where the advertiser or marketer can access it and accordingly target customers.
Targeted advertising has been used before by search engines such as Google and Yahoo which uses customer behaviour data culled from how and what they search for on the Internet.
Facebook is under intense pressure from investors to boost its revenue growth that has been flagging of late.
Google enables advertisers to remarket to users according to their interests across sites. "When people leave your site without buying anything, for example, remarketing helps you connect with these potential customers while they browse other websites," Google says on a company site.