Definition: Facebook Exchange, also known as FBX, is Facebook's proprietary platform advertising service for desktop users. FBX is driven by real-time bid purchases, and allows online advertisers to place ads onto the Facebook sidebar or directly onto users' timeline as they scroll down.
Facebook Exchange is currently aimed at desktop users, with relatively little integration in the official Facebook mobile apps.
Facebook Exchange leverages the social media giant's massive (and growing) user base with prime advertising real estate for online businesses.
1. Restricted to large buyers
FBX is not open to the general public, but is only available to large Demand-Side-Providers of advertising services. Generally, a company has to be partnered with a major online ad agency to get FBX access.
2. Focused on retargeting
As mentioned above, FBX relies heavily on retargeting for placing ads, whereas traditional Facebook ads are targeted solely based on demographic and activity-related data.
3. Additional data sources
FBX allows companies to integrate their own external data sources into ad targeting, beyond Facebook's own data.
4. Emphasis on conversions
Traditional Facebook ads are generally intended to build brand awareness and spark conversations. FBX ads are almost always aimed at driving viewers to websites and creating lead/sales conversions.