Facebook Exchange is reportedly seeing more than seven billion ad impressions a day come through its system, which is about one ad avail for every living human each day, and may pose a significant contribution to "excess" inventory in the markets. In revenue terms, this is about $2.5 billion a year for each $1 in CPM price, and quite possibly puts FBX's industry revenue share into the double digits, up from essentially nothing back as recently as this summer.
The figure comes out as Chango is promoted to a Preferred Partner of Facebook, and has been beating its chest about how super fast its system must be in marrying together avails from Facebook and its own profiles of search behavior.
Employing Preferred Partners is one of Facebook's strategies for helping to add value to the vast quantity of its media avails, which otherwise could glut the media market to the point of prices reflecting not much above the cost of ad serving.
Those partners rely on data now being closely watched by the FTC, with new reports that Acxiom, Corelogic, ID Analytics, Rapleaf, Datalogix, Recorded Future and eBureau are answering questions from the Commission.
The FTC's release on their investigation did not indicate an explicit objective or concern, but tellingly stated, "Consumers are often unaware of the existence of data brokers as well as the purposes for which they collect and use consumers' data. This lack of transparency also means that even when data brokers offer consumers the ability to access their data, or provide other tools, many consumers do not know how to exercise this right."
Reading between those lines, the FTC might be concerned that the digital ad data industry does not have a system, as credit scoring firms do, for individuals to interact with and correct their own records; which would constitute an extremely high - and perhaps uncontemplated - bar over which data firms would have to hurdle.