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Facebook's Ad Exchange Partners Are Making Up To $150 Million A Year In Revenues

Oct 14, 2013, 19:34 IST

Reuters/Robert GalbraithFacebook CEO Mark Zuckerberg

Facebook's FBX partners - the companies who buy ads based on tracking cookies inside Facebook's ad exchange - are making as much as $150 million a year in revenue, according to Karsten Weide, VP-digital media and entertainment at research firm IDC.

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Until recently, we've had very little visibility into just how big Facebook's ad exchange is. On Facebook's Q2 2013 earnings call, COO Sheryl Sandberg said "FBX ... is actually a very small part of our business." Previously, observers had suggested it may be worth $1 billion in revenue annually.

And we recently noted that Rocket Fuel, a Facebook ad partner that recently disclosed its revenue numbers in an IPO filing, was seeing less than $10 million per quarter in revenue from FBX.

The $150 million number includes non-Facebook revenue, too. And there are 20 different companies funneling ads into FBX. So it's still very difficult to gauge how big FBX is for Facebook. Here's what Ad Age reported:

"All these guys have $150 million a year in revenue, so this business is very interesting to them," said Mr. Weide. "It could make quite a bit of a difference for them. It's definitely boosting their fortunes."

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Last week, AdRoll announced it hit a run rate of $100 million, citing FBX as an important driver. "The impasse between Facebook and Google has allowed us to be Switzerland in the middle and focus on delivering results for our customers across both inventory sources as well as many others," said AdRoll President Adam Berke in an email.

Kurt Unkel, president of Publicis' VivaKi, said DSPs like Turn and MediaMath have captured increased amounts of the roughly $125 million VivaKi spends on social advertising.

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