/// Why the Ad Tech Guys Are Going Nuts About Facebook Exchange, and Why That Matters

October 5, 2012  |  All Things Digital


This summer, Facebook launched its own ad exchange . If you’re in the ad tech world, that’s a really big deal. And the rest of you have probably never heard of it. That’s in part because Facebook itself hasn’t said much about it. It kept its partners under a tight gag order throughout the summer until last month, when it allowed them to hand out a few upbeat anecdotes . And none of that stuff will make sense to a regular human being. So we asked Triggit CEO Zach Coelius to try to explain what Facebook is up to, using as much plain English as possible. Coelius isn’t close to being a neutral observer, because he’s been an enthusiastic Facebook partner. But he’s a good explainer, and relatively candid. One scenario to keep in mind as you read the interview: If Coelius is right, and the Exchange adds dramatic value to the cheap ads Facebook is using it for right now, what would happen if the company relented and offered the Exchange on all of its ads? Two theories, which aren’t mutually exclusive: Facebook’s overall revenue shoots up, as the company conforms to the way most of the Web ad world does business. Facebook’s value flattens or drops, because Facebook will have conceded that it hasn’t been able to figure out a revolutionary new way to sell ads

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Why the Ad Tech Guys Are Going Nuts About Facebook Exchange, and Why That Matters



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