Most of the business press has noted that the exchange is about improving the effectiveness of ads on Facebook.
Few. however, have noticed how it protects Facebook's vast trove of marketing data, making it more valuable for Facebook and concealing it from advertisers who might otherwise have access to it,
The exchange works by allowing advertisers to target people with "cookies" — tiny bits of software that sit on your device and monitor your web browsing — when they visit non-Facebook websites. When those people eventually arrive on Facebook, the cookies activate ads promoting the other web site's brands.
Partners in the exchange include so-called "demand-side platforms" like Triggit, TellApart, Turn, DataXu, MediaMath, AppNexus, TheTradeDesk and AdRoll. Those companies place and buy web advertising for clients
The exchange will allow advertisers to run only standard Marketplace ads–those little text-and-a-photo boxes on the right side of Facebook pages. They’re not the “Premium” ads that run alone on people’s opening Facebook home pages, nor the more overtly social ads such as Sponsored Stories. Facebook is betting those latter ads will be more effective over time than its standard ads because they are essentially natural posts by people that marketers pay to make sure they appear to people’s friends, making them more likely to be noticed. But it’s believed that most of Facebook’s revenue currently comes from more standard Marketplace ads.
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