Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Facebook Inc. (FB) Expands FBX with AOL Inc. (AOL) Alliance

Facebook Inc. (NASDAQ:FB) – a stock owned by 67 equity hedge funds that we track, a 40-percent increase over the third quarter of 2012 – started its Facebook Exchange for advertising less than a year ago, but it has established itself as a revenue machine for the social network. Now, apparently the FBX will likely expand as AOL, Inc. (NYSE:AOL) has apparently agreed to integrate its $600 million ad sales network into the exchange, allowing AOL clients to buy space on the Facebook platform.

More specifically, AOL, Inc. (NYSE:AOL) Networks site has signed on with Facebook Inc. (NASDAQ:FB) to utilize the Facebook Exchange platform. The FBX is an opportunity for outside vendors to buy advertising space on Facebook using the same data analytics and marketing strategies that those outsiders use on other Web pages to target customers. Facebook’s exchange has grown so much that it generates a billion impressions per day, and Facebook ha a different advertising program in effect as well that generates advertising based on data and information about Facebook users.

Facebook Inc. (FB)In announcing the alliance, AOL Inc. (NYSE:AOL) Networks chief Ned Brody blogged,  “We know that advertisers want to include Facebook inventory in their buys — we’re seeing it on RFPs — so we’re glad to be able to further meet their needs.” reportedly accounts for $600 million in ad sales each year for AOL, so this is likely the largest FBX client for the fledgling network. And if Brody’s client base is thirsting for the Facebook platform for tis ads, Brody may likely leverage this alliance with Facebook to entice new customers to use the AOL Networks instead of Google Inc. (NASDAQ:GOOG), which currently does not have an alliance with Facebook Exchange.

What do you think about this new partnership? Is this a win-win for both companies, or does Facebook Inc. (NASDAQ:FB) or AOL Inc. (NYSE:AOL) come out better in this deal? Do you see either company being hurt by this? Let us know your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Please see these related FB articles:

Top Stories in Tech to Consider

Facebook May Subsidize Messenger in Emerging Markets

Avoid Facebook? Here’s Why I Am