Another important new arrow in Facebook’s advertising quiver is its 2012 launch of Facebook Exchange, or FBX, as it’s been nicknamed. Its two big elements for marketers are (1) remarketing ads and (2) real-time bidding. Remarketing, also known as retargeting, is already a much-used advertising practice on the web, where site owners install scripts to cookie their visitors and later display banner ads to them on third-party ad networks throughout the Internet.

The goal is to reel in past website visitors for repeat purchases or to recover abandoned shopping carts. With cookie-driven Facebook Exchange ads, you can target your website abandoners later, on Facebook, with sidebar ads. (Sponsored Stories are not available in this program.

Picture a visitor to your website who browsed a few products, performed a couple of searches, added an item to her shopping cart, but left your website without checking out. These visitors are identified by cookies, which are used later by third-party websites (news and entertainment sites, blogs, you name it) to trigger relevant display ads.

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How pertinent are these banners to your marketing efforts? Depending on the information harvested by your website, your remarketing banner ads can display the exact items that a particular consumer searched, viewed, or abandoned in the cart.

Personalized ads like these have been shown to produce a 20%-plus lift in sales conversion over traditional ads.

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