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STUDY: News Feed FBX Ads Increase ROI By 197 Percent

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Just how powerful is Facebook’s News Feed? One of the alpha testers of Facebook Exchange (FBX) retargeted News Feed ads, Nanigans, says that advertising in the site’s primary feature increased return on investment (ROI) by 197 percent, compared to the right sidebar.

Nanigans shared the results of their early test with FBX in the News Feed. Previously, ads based on users’ browsing data outside of Facebook could only be placed in the right sidebar. However, the returns on these kinds of ads are generally disappointing, as many users either ignore them or use ad-blocking technology to remove them completely.

Being able to use retargeted ads in the News Feed, where the most time is spent on Facebook and where ads can be hidden after they’re seen but not blocked initially, apparently leads to greater returns. According to Nanigans, ROI on retargeted News Feed ads increased 197 percent compared with the sidebar.

Additionally, retargeting ads through FBX in the News Feed led to a 17.1-times higher clickthrough rate and 48 percent lower cost-per-click.

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