A remarkable achievement for the Israeli startup myThings: It is one of 20 companies known as FBX-qualified companies, successfully integrated with and launched on Facebook Exchange (FBX) — Facebook's real-time bidding (RTB) ad exchange. Thus, myThings is the first Israeli company that will be able to purchase on behalf of advertisers' display ads on Facebook in real time — whether for the Facebook Timeline interface or the Facebook feed interface, which displays sponsored statuses as ads.
The Israeli myThings thus joins American AdRoll, AppNexus, and Triggit on Facebook’s ad exchange, known as FBX, which is designed to be Facebook's response to Google’s DoubleClick and Yahoo's Right Media ad exchanges.
While myThings is not the first Israeli company to collaborate with Facebook’s ad exchange, it is the first to do so in real time, in a sector which is considered the most fast-growing and lucrative. Unlike a standard ad exchange, a RTB ad exchange involves an automated process, lasting milliseconds, in which multiple advertisers compete for a spot to display a commercial ad.
Facebook and myThings characterize within the same time frame, for all relevant advertisers, the user's preferences and demographic features, as well as the relevance of the advertising to the advertiser. The more relevant the user is to the advertiser, the higher the fee for advertising in the specific time frame. Ultimately, the ad most profitable for both Facebook and myThings and most relevant to the user is selected from the pool of advertisers taking part in the automated bidding.
Advertising through RTB currently accounts for 20% of the display ad market in the United States, and its market share is rapidly growing. According to the American market research firm International Data Corp., or IDC, by 2015, the revenues from display advertising in real time are expected to reach $5 billion in the United States alone, accounting for close to 30% of the market. Furthermore, as indicated by IDC, the revenues in this segment are expected to exceed revenues from standard advertising on Mobile and social networks, and video ads.
MyThings is currently considered to be a major provider of technology for the retargeting industry — personalized retargeting being a display advertising technique used to recapture a consumer who considers purchasing some article on a certain website, but changes his mind at the last minute. If a user enters a site, looking to buy shoes, he will finds an ad promoting shoes or a shoe store on another site that he visits. The ad is automatically and instantly formed by myThings, without the user ever noticing it. MyThings is currently serving 400 advertisers, including Adidas, Microsoft, McAfee, and Yves Rocher. According to myThings, 31% of the surfers on the Web are exclusively exposed to the real-time advertising network of Facebook.
So far, the company has raised $39 million from Accel Partners, Carmel Ventures, Iris Capital, Viola Private Equity, and T-Venture. It was founded and is managed by CEO Benny Arbel.
Kenshoo and Maverick — the most effective revenue-generating engines for small businesses on Facebook
Facebook has also announced the award winners of the Facebook Preferred Marketing Developer Innovation Competition — a semi-annual competition conducted by Facebook for external developers who develop business marketing platforms. Among the six award winners are two Israeli companies: Kenshoo, and the tiny start-up Maverick (formerly, Appforma). Kenshoo, which is a longtime partner of Facebook, is located in [the Tel Aviv neighborhood of] Ramat HaHayal. It was selected as one of the six Innovation Award winners for the technology it developed — pricing of advertising, and commercial ad design based on business inventory and on demand on social networks and search engines.
Another Israeli award winner is the young start-up Maverick, which developed a digital marketing system for small and medium businesses, based inter alia on advertising and traffic generation on social networks, and on measuring their effectiveness. The company generates traffic through automatic posting on Facebook and Twitter. It buys media on Facebook’s ad exchange using a sophisticated algorithm, and it runs campaigns by email and by means of a dedicated app. Maverick was founded by Itamar Shafir, Eyal Kedem, Eyal Abramovich, and Hillel Porat. Sixty-nine companies took part in the competition. Two other winners of Facebook’s Innovation Award besides Kenshoo and Maverick are the global cloud computing company Salesforce.com Inc., and the social ad buying and analytics company Optimal, Inc.
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