When Facebook first introduced its ad exchange service (FBX) at the end of 2012, Domino's Pizza UK was one of the first companies to sign up. The service, says to Simon Wallis, Domino's UK sales and marketing director, works as a customer acquisition channel and builds the brands social presence, according to Marketing Week.

Many of FBX's early adopters were smaller or mid-sized companies. Domino's UK added the platform in August.

According to Ad Exchanger, the company has since experienced "substantially lower" cost-per-sale (CPS) than standard real-time bidding. It also had a 62-percent lower CPS for search ads on non-brand keywords such as "pizza."

To describe FBX in layman's terms, Tech Crunch writes that it is "a way for advertisers to market themselves to users based on those users' online browsing habits using a cookie-based real-time bidding platform. Those ads have proven to be some of Facebook's strongest performing ad units, so now it's taking them a step further, with an alpha test to extend FBX ads into the desktop News Feed, the place where users spend most of their time on the social network."

The publication further notes that the service's extension isn't expected to increase the number of ads in a news feed, but will make them more relevant, based on where a user has been online.

According to Facebook, the new retargeting ads will appear in the news feed only on desktop. Mobile retargeting has not yet been introduced.

"Allowing advertisers to reach people in News Feed is important because people spend more time in news feed than any other part of Facebook," Facebook writes. "We also believe that ads delivered through FBX will create more relevant ads for people. Introducing Facebook Exchange in desktop news feed will not change the number of ads people see in their News Feeds."

Read more about social media initiatives.

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