Monday, September 17, 2012

This Diagram Explains Facebook's Next $10 Billion Business

This is a great example of an idea that uses the true base strength of your business or company—in this case with Facebook it is their enormous data on us—to expand your business by deploying different market access. The idea is summarized in this 2X2:
An explainer: Right now, Facebook only sells ads on These ads can only be targeted to users based on data they gave Facebook about themselves – their "likes" and their profile information.  That's the top left quadrant. 
In the bottom left quadrant, our source wrote "FBX," which stands for Facebook Ad Exchange.  Through the Facebook ad exchange, which is in beta right now, advertisers will be able to buy ads on and target them using both the same Facebook data described above AND data about users provided by third-party sources.
Right now, Facebook says it will build this exchange, but our source thinks Facebook will eventually acquire New York-based ad tech platform AppNexus and plug it in, instead.
Our source says Facebook's next $10 billion business (which would be its first) takes place in the top-right quadrant. In this business, Facebook will sell ad inventory on third-party sites and target it using its own data AND third-party data.

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