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Will new FXB ad exchange be the revenue winner Facebook is searching for?

In terms of increasing its ad revenue it might be.

Facebook is launching Facebook Ad Exchange (FXB) a real-time ad exchange similar to those already employed by Google and Yahoo.

The system allows marketers to bid in real time to buy ad impressions on the social networking site and deliver their ads to users based on their immediate web-browsing habits, or linked to current events such as sports results. So if you look at a lot of condom ads you can expect one when you tune into Facebook.

And there’s the rub of course, will Facebook users welcome such tracking of their predilections?

So FXB is also a risk for Facebook but it’s probably something it had to do to compete hard for ad revenue. This, plus its various efforts to make itself more mobile-friendly should bring some much-needed succour to those Facebook shareholders who bought at $38 (the shares are currently $20).

Whether there’s enough ad revenue ever to justify Facebook’s still stratospheric supposed value is another question.

But Facebook has signed up the digital trading bits of WPP, Omnicom, Interpublic, Aegis and Publicis Groupe to the new service so that’s a good start. But they were bound to join in, of course, because it gives them another reason to coax money out of clients’ wallets. As ever, it’ll be the response of Facebook users that really matters.

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