Facebook teams with China firm to target advertisers
By Chen Limin, China Daily/Asia News NetworkBEIJING--Facebook Inc., the world's biggest social networking site, has teamed up with a Chinese partner on real-time bidding (RTB) for advertising on its site, a technology used by Google Inc. and other Internet companies to target advertisements to consumers more effectively.
January 1, 2013, 12:59 am TWN
The move will enable the U.S.-based company to reach more Chinese advertisers who want to place more targeted advertisements on Facebook even though its service is not currently accessible in China.
Facebook is cooperating with Beijing PinYou Interactive Information Technology Co. (iPinYou), a Chinese advertisement broker that places advertisers' bids on RTB platforms. It is matching the system of its RTB service, Facebook Exchange, with iPinYou's, said Huang Xiaonan, chief executive officer of the Beijing-based company.
Facebook Exchange enables advertisers to reach specific types of consumers based on their browsing history with the usage cookies on consumers' computers. For example, an Internet user who visited Web pages related to trips to Paris may see advertisements of Paris' hotels and flights later on Facebook.
“There is demand from Chinese advertisers to reach out to U.S. consumers and this is the way how Facebook can cash in on the Chinese market,” said Huang. The chief technology officer of iPinYou had in October along with a team of Chinese advertisers held talks with Facebook officials on possible avenues for cooperation.
An email sent to Facebook for more information went unanswered.
There are a large number of Chinese exporters that want to reach international customers, and most of them now use Google to place advertisements, said Hong Bo, a Beijing-based IT analyst and founder of consultancy firm IT5G.
“The most widely used way for these exporters is to buy keywords on Google because keyword searching is the most directly linked measure of consumers' willingness to buy,” he said, adding that Facebook is exploring ways to improve the effectiveness of social advertisements.