Re-targeting has been a long-time practice in the online advertising biz. It essentially displays ads for sites that users have already visited. The idea is that there should be a higher conversion rate because there is some level of interest.
Facebook (NASDAQ:FB) recently entered this market with its Facebook Exchange (FBX) platform. While it should be a nice money maker, it has inevitably generated controversy from organizations like the Council of Better Business Bureau.
To help mute things, Facebook has made some tweaks to its FBX program. If a user hovers the mouse over x-shaped icon, an AdChoices message will pop up. It will say that Facebook engages in ad tracking.
True, you can opt-out of an ad … but that has been a standard feature for Facebook.
All in all, the company’s move is somewhat half-hearted. But then again, to keep providing a free service, Facebook needs to pay the bills … and this means there will always be annoying ads.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.