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Will Retargeting Platform AdRoll Brave the Launch of Facebook Product Ads?

By Tinuiti Team

Mar 09 2015

For nearly a decade, retargeting platforms like AdRoll have invested in building innovative technology to enable their advertisers to engage customers.

According to AdRoll, generally 2 percent of shoppers convert on the first visit to an online store but retargeting brings back the other 98 percent. The company, who represents brands like Clinique and Vistaprint, must now brace itself for the launch of both Facebook’s new Product Ads program and recent initiative to invest heavily in improving its advertising platform.

Will the so-called “middle man” be cut out entirely?

In a recent post, we discussed how the latest Facebook product advertising program could lead to groundbreaking revenue for both the social network and retailers thanks to their advanced user-data and targeting capabilities. Retailers will be able to advertise directly through Facebook, rather than though a third-party.

So what about popular retargeting platforms like AdRoll?

Josh Brisco, Senior Retail Search Manager at CPC Strategy predicts the introduction of Facebook Product Ads will prove a challenging time for retargeting companies.

How will the launch of Facebook Product Ads impact retargeting platforms?

“Facebook product ads, and the many other new advertising programs offered by Facebook will have a significant affect on display focused solutions who have been the gatekeepers of FBX for some time now. These upgrades should not have an effect on their general display offerings, but my feeling is that once people realize they can cut out the middle man so to speak, and advertise directly through FB itself, they will begin doing so. “

“The 2016 Guide to Facebook Retargeting“

Is there a future for AdRoll and similar companies?

“If AdRoll and the like are able to recreate the product ads offering via their own platform, that would help to mitigate the negative affects of this transition. But if Facebook does not open this program up to FBX, they will be left at a steep disadvantage, especially in the realm of e-commerce. As far as e-commerce related Facebook advertising, the display platform agency no longer provides a solid argument to go that route instead doing this in-house or via a company’s existing feed/PPC agency.”

Product Ads is currently only available to Facebook Marketing Partners, who are sorted into several categories including:

Ad Technology
Media Buying
Facebook Exchange (FBX)
Community Management
Content Marketing
Small Business Solutions
Audience Onboarding
Audience Data Providers
Measurement

At the time, it remains unclear the future of AdRoll and like-minded platforms, but as Facebook continues to gain momentum in the advertising world – it is becomes more apparent that retargeting platforms will be forced to evolve to keep pace with the ever growing social media giant.

AdRoll, a Facebook Marketing Partner, declined to comment due to “very strict guidelines on what their partners can say publicly about their products and our partnerships”.