Another Sign Facebook Is All In On Mobile Advertising | Financial Buzz

Another Sign Facebook Is All In On Mobile Advertising

Facebook (NASDAQ: FB) is planning to shut down Facebook Exchange, FBX, which enables third-party ad technology firms to purchase ads on the social network.

This means FBX partners will have to use a different platform. Ad-tech companies such as Criteo, DataXu, MediaMath and AppNexus will be influenced by this move.

It is hardly a surprise in the ad-tech industry. Facebook had pared down its FBX partners early 2015 and recently the giant Web company appeared to shift its focus to its own Audience Network. Audience Network lets marketers buy ads by using Facebook’s data, which means Facebook deals with marketers directly. Facebook also sells video ads through the platform. The company’s advertising revenue last year was more than $17 billion, while the sales on Audience Network suggested $1 billion in the fourth-quarter last year. 

“Mobile is now a necessary component of effective marketing campaigns, and Facebook is helping millions of businesses understand their customers’ purchase path across devices,” Matt Idema, vice president of monetization product marketing for Facebook. “Dynamic Ads and Custom Audiences have mobile at their core and are delivering excellent results for businesses, so Facebook Exchange spending has shifted towards those solutions.”

“Facebook is becoming more of a closed ecosystem, something we expected,” said Greg Williams, MediaMath’s co-founder told the Wall Street Journal. “It allows Facebook to control their own platform by maintaining the ability to make the last-mile decisions on behalf of advertisers.”

Since Facebook’s advertising revenue on mobile has exploded, the company is sitting high on the hog and try to come up with more efficient way to earn profits from advertising.