Photo: World Economic Forum
Facebook reports third quarter earnings this afternoon, and we’ll be all over it with live coverage on SAI.The big question for Facebook is, did it re-accelerate its revenues.
But there are smaller but still important questions analysts are asking too.
For example: Morgan Stanley analyst Scott Devitt wants to know if the Facebook Ad Exchange, opened this summer, has had any effect on Facebook’s overall ad rates.
We can spoil the drama right now: The answer is not really.
Facebook’s ad exchange, usually called FBX, is a new product that allows advertisers to buy Facebook ad inventory and target it, using data from third parties.
We’ve written multiple posts about how this could be a very big business for Facebook soon. One source told us Facebook can charge three times as much for ads sold through FBX than it does on its own.
But total spending on FBX remains super tiny relative to spending on all of Facebook. It may not have even reached millions of dollars yet, according to one partner.
So, while Facebook may announce that it re-accelerated revenues in the third quarter (we are sceptical) it won’t be because of FBX. Sorry to spoil the suspense.
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