Google’s DSP Added To Facebook Exchange

facebook-doubleclickMore than a year after Facebook opened its exchange, Google is finally being integrated into the retargeting service through its demand side platform, DoubleClick Bid Manager (fka Invite Media), the company said in a blog post.

The integration comes a day after Google posted Q3 earnings that demonstrated the slowing of its paid click growth and an indication that it would look more toward hardware first to generate the bulk of its revenues.

As Payam Shodjai, Google’s senior product manager, writes, “Partnership has been key to Google’s success as a rising tide lifts all boats.  So we’re excited to announce a new way to help our clients succeed by working with Facebook to participate in FBX, their real-time bidding exchange.”

The integration of Google’s BidManager into FBX comes as the company has been driving hard to promote even greater adoption and dominance of its ad tech “stack” strategy. Among the first steps Google took towards approaching Facebook as a potential partner in the social network’s exchange was the addition of social media campaign manager Wildfire, which the search giant acquired for $250 million in 2012, into DoubleClick Digital Marketing (DDM). As Google display head Neal Mohan said many times over the past year, the company believes there is a “$200 billion opportunity” in unlocking offline dollars for exchange-based ad spending.

While Google and Facebook have been locked in a race for display dominance  since last year, it will be interesting to see which one sees the greater benefit. As eMarketer figures show, Google will bring in more US display ad dollars than any other company this year, topping the market with 15.4% share. Facebook, by comparison, will earn $2.16 billion and a 14.4% share in the US display ad market by the end of 2013.

To be sure, Google has vied to be part of FBX since it began accepting partners and Publicis trading desk had been known to complain about having to choose between the the two. With this deal, Google’s existing exchange partners are likely to be cheering about access even more than either Facebook or the search giant.

In the meantime, there’s a number of questions to be sorted out, given that Google said it will not be commenting beyond its blog post today. For one thing, will advertisers be able to buy Facebook Exchange inventory through Google AdWords now or someday soon?  After all, AdWords buys through the exchange.

A Google rep said that “Bid Manager is the way agencies/advertisers can buy across exchanges (not just AdX/Google Display Network) and this doesn’t change that.”

Digital ad executives expressed relief Google and Facebook have moved past their differences — and that they’ll no longer be asked what they think of the stalemate.

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  1. Google has clearly gotten the message Triggit and other FBX partners have been evangelizing since FBX launched 18 months ago – Facebook is *the* highest-ROI, most efficient place to retargeting the world has ever known.

    Now, it will be interesting to see how aggressively Google pushes advertiser spend from its own inventory to FB’s. My prediction is they’ll spend <10% what they should, and will only do enough to make advertisers think that with Google they've 'addressed' the FBX opportunity.

    Having launched more of Google's top 5000 AdWords spenders onto FBX than anybody, we know that FBX should get virtually every incremental retargeting $$ for years to come, because it converts better, costs less and has a much higher click & view-thru value than Google's inventory.

    Will Google tell advertisers the truth?

    I doubt it, which is why I'm psyched at the unbridled growth ahead of Triggit and our advertisers!

  2. One other note on this: I can’t wait to see what happens as advertisers start to realize that both Google & Criteo (the two biggest retargeting firms in the world) unilaterally and secretly use their advertisers’ 1st party cookie data as the intent signal to grow other retargeting advertisers’ campaigns. Details:

    AdWords Remarketing Similar Audiences: (see 3 comments)
    Criteo cookie sharing: (real-world examples)

    When the deluge of big direct response advertisers wanting to work with DSPs who do dynamic creative well on FBX and who respect their 1st party data ownership ends, we’ll let you know. . .

  3. M. Zuckerberg

    Haha – it’s not like I would have expected Triggit to greet this news with open arms, but perhaps the above comment might have been better served with posturing that was just a *bit* less clumsy? Whatever his faults, at least you could count on Zach C. to always speak his mind. (Though, “oh crap – there goes our differentiation” might not be precisely where I’d go either.)

    It will be very interesting to see how quickly a dynamic creative solution is cobbled together on top of DBM. The Teracent guys could probably hack something together if they weren’t living in the belly of the beast – so perhaps all hope is not lost?

    Tip: FUD is the last bastion of the weak and panicked. Use real differentiation when you have it – and in this case, you still do – for now.

    Ah yes, we work in an interesting industry, folks!

  4. Zuck Impersonator: I built & ran sales at Efficient Frontier, an SEM startup that was acquired by Adobe for $425M last year. At EF we were told by pundits that we should fold our hand when Google came out with Conversion Optimizer, and again when Marin & Kenshoo entered the market and used $50M in VC funds to drop their pants into 1000’s of deals.

    It’s all about execution. Google getting onto FBX means 10-100X more advertisers will get a taste of FB + 1st party data, which grows the market massively for those like us who who can take big DR advertisers to the next level once they see that Google’s only interest is further extending their toll road.