Facebook's New Ad Exchange Has 'Quadrupled' The Market; Performs 'Better Than Google' (FB)

It's been hard to gauge how big Facebook's new real-time bidding platform for advertisers, Facebook Exchange, has become since it was launched in June, but global sales chief Carolyn Everson let slip just how big it could be in a recent conversation with Adweek and Group M digital chief Rob Norman.

First Norman said he believed FBX had "quadrupled" the size of the available market for advertisers who wanted to place ads based on real-time bidding in exchanges:

We love it. We absolutely love it. Massive, massive, massive increase in the amount of exchange traded media. We think it?s probably quadrupled the market in terms of availability of total impressions.

Then Everson said FBX was performing better than Google's ad exchange:

So we are very excited about Facebook Exchange. We?re excited about the results that we?ve seen. Our performance so far in the Exchange is doing better than the Google Exchange, and Triggit and others have all spoken up on our behalf.

The caveat here, of course, is that quadrupling the supply of available ad inventory isn't the same as quadrupling the demand for it. And the performance evidence from the demand-side platform companies who have been placing ads inside FBX, like Triggit, is so far only anecdotal. Those buyers say clients can get 16X ROI inside FBX. (Notably, FBX was not mentioned in Facebook's recent 10-Q.)

Nonetheless, it's yet another breadcrumb on the trail toward Facebook's claim that it is on the way to gathering a new $2 billion ad marketplace.

Disclosure: The author owns Facebook stock.

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