When Facebook launched Facebook Exchange (FBX) last September, it was an important day in the history of online advertising.  Facebook accounts for some 25 percent of U.S. display inventory on the web. Now that inventory can be purchased with real-time bidding (RTB), and marketers can target their most valuable customers with a display ad on Facebook.

But, though it didn’t receive as much attention as the launch of FBX, Facebook made another critical move in December when it allowed advertisers to target customers based on what they searched for in Google, Yahoo! and Bing. By combining FBX with search data, Facebook brought the power of intent that’s revealed by searches to the world’s biggest social network. Or, put another way, in serving ads against search data, Facebook is now employing the Internet’s most effective marketing tool, the very tool that has earned Google so many billions.

Let’s take a look at how FBX works and how you can serve ads to Facebook users based on searches they’ve made on other sites.

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