It’s no secret that Facebook has had difficultly getting companies to pay for advertisements on their site, especially since they can make company pages on the social network for free. They also recently settled a suit with a $10 million pay-out to charities that alleged that Facebook’s Sponsored Stories benefited from its users’ “likes” without giving them compensation or a chance to opt out.

Now, reports are that Facebook is developing Facebook Exchange, a platform (FBX) for real-time bidding for advertising on the site. This service would be designed to help advertisers target specific types of users based on their browsing history with prices based on cost per thousand viewers and spots sold via third-party technology partners.

While notable, Google and Yahoo offer similar services to advertisers. There was some confusion initially over what was confirmed about location specific ads, but real-time targeting is not in the works yet for their mobile product.

“Facebook’s been having challenges coming up with effective advertising,” said Debra Aho Williamson, an eMarketer analyst. “[The company] is hoping to use that inventory on the right side of the page to deliver advertising that is more targeted.”

Real-time bidding generates about $5.08 billion, or 27 percent of the projected $18.9 billion to be spent on U.S. online display ads in 2015, according to IDC research. Facebook bidding and re-targeting could bring substantial revenue the social network that’s been publicly battered after the recent IPO by offering more relevant direct advertising.

Facebook is reportedly testing eight ad vendors’ platforms — TellApart, Triggit, Turn, DataXu, MediaMath, AppNexus, TheTradeDesk, and AdRoll — for Facebook Exchange.

Source: Brand Channel