Facebook to launch ‘Facebook Exchange’

Facebook will soon be launching ‘Facebook Exchange’, which will allow advertisers to participate in real-time bidding to show ads on its website.

The service, a potential moneymaker for the world’s most popular online hangout, will enable advertisers to reach users based on their browsing history elsewhere on the Web, and the advertisers can bid on ads.

According to the Los Angeles Times, the ads will be sold by third-party ad brokers, who will use cookies to track users on the Web.

Facebook Exchange comes as the latest effort from Facebook to pump up revenue to levels that justify its stock market value of about 58 billion dollars.

Google, Yahoo, AOL and other companies, to target ads to consumers as they surf the Web, are already using real-time bidding technology, however, this is the first time that Facebook is enabling advertisers to target its users this way.