Facebook (FB) Ad Exchange Will Add $450 Million to 2013 Revenue

Nomura recently hosted a conference call to discuss Facebook Advertising Exchange (FBX). Based on comments from the call, they think FBX can add $450 million to 2013 Facebook (NASDAQ: FB) revenue.

FBX is a Facebook-exclusive ad network allowing advertisers to use their own real-time consumer insight and web-tracking data (cookies) to re-target audiences on Facebook.

"After updating our model, we are adding in $450mn to 2013 advertising revenue because of FBX . . . if anything, there is an argument that we may prove to be overly conservative with this estimate if it really starts ramping and generating higher ROI," said analyst Brian Nowak.

In the past Facebook has faced criticism about its ability to monetize users, especially considering the transition to mobile.

"In all, Facebook’s monetization story continues evolving (really developing), and FBX underscores how single strategic changes can lead to much higher long-term monetization on this platform," added Nowak.

Nomura Securities has a Buy rating on Facebook with a price target of $27.00.

For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.

Shares of Facebook closed at $23.23 yesterday.

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