Ad tech firm Triggit says exchange is “Facebook’s Adwords”

Mark Zuckerberg ringing opening bell

For those wondering when Facebook is going to figure out that advertising thing, Triggit has some good news: it claims that ads that appear in the site’s news feed are 16 times — in some cases 38 times — more effective than regular old Facebook ads. The ads are so good, in fact, that Triggit’s CEO calls them “Facebook’s Adwords” — a reference to the search ads that have made Google so rich and powerful.

If you prefer your good news with a grain of salt, you can take note that Triggit makes its living by helping marketers buy ads on Facebook’s exchange — the bidding platform where brands can buy ads in real time. The exchange, known as FBX, was supposed to jumpstart the social network’s advertising efforts.

According to Triggit, which is one several ad tech companies that Facebook permits to broker the ads, the cost for a large international retailer to obtain a customer on the news feed exchange is one-third the price of a traditional “right-hand rail” ad and 1/16th that of a traditional Google display ad. The company says the ads are especially taking off in international markets like Latin America.

“The big takeaway is that this is a game changer for advertising. It changes the economics for publishers too,” Triggit CEO Zach Coelius said by telephone, claiming that every other company that has a news feed will soon look to create an automated exchange too.

For believers, news feed-style ads are “native” and less likely to be ignored by consumers, while the use of real-time bidding permits masses of them to sold to the right people (based on retargeting data) with minimal effort.

If Triggit’s claims are even mostly true, that will be welcome news for investors who fret that Facebook’s advertising results haven’t lived up to their original promise.

Ad industry watchers, meanwhile, agree that the newstream ads more effective than other forms of Facebook ads. But they also caution that too many of them, including forthcoming video ads, could be off-putting to users of the social network.

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