Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Facebook Will Soon Get To Explode

I remain - ever the optimist, here... And I do (still) strongly feel that there are much sunnier days ahead for Looksmart. - Exciting days!

In spite of today's AdExchanger article ("The Myth of the End-to-End Ad Tech Solution") it's clear to me that there remains that all important (global) need to firmly have in place the 'independent' plumbing within an efficient ecosystem. (Data will always have a need to be protected & the 'friction' that's encountered - when looking for scale, avoided.)

Whether by design or, simply plain ignorance, articles like this will do this fledgling industry no good at all, I feel.

And that (as Looksmart advises), 'with proprietary data and algorithms [advertisers can only then, get to] analyze and evaluate anonymous consumer behavior - to identify receptive in-market digital audiences across premium inventory'. (Resulting from those 5 billion daily search engine queries, and in real time!-Is how common sense should prevail.)

To understand this better, readers should find it interesting to note, that of the 14 companies added to Facebook's Exchange (becoming Facebook Exchange RTB partners) there remains just two (Nanigans and XA.net, Inc.'s Optim.al) who continue to be the only ones that are also Facebook ads application-programming-interface partners.

Note that from within that above Nanigans' Link, we are told Nanigans (it's a 2nd link) analyzed some 200 billion Facebook ad impressions via its Ad Engine platform during the first and second quarter.

In this link Ad Engine advises, every second the Ad Engine delivers 22,000 Facebook ad impressions. Built from the ground up to introduce performance advertising to Facebook, over 100 large-scale advertisers license the Ad Engine software or leverage our managed service offering.

So we need to go back to April 06, 2011 to a company announcement and a quote from in an announcement from Rob Leathern, the Founder and CEO of XA.net to realise, they (too) will have a similar capability.

"Companies are approaching us as a leader in Facebook advertising optimization and quickly realizing the additional benefits of combining social media, retargeting and audience targeting via real-time bidding."

But what of those other dozen real-time-bidding partners (like, AdRoll, AppNexus, DataXu, MediaMath, Tellapart, The Trade Desk, Triggit, Turn, and Xaxis, that have access to the Facebook Exchange?

When do they get to become (fully fledged) Facebook ads application-programming-interface partners? Or, do they ever? Never?

If you click on the above (multiple partner's) link you will read, that... Bloomberg reported that Facebook Exchange will launch within weeks, and the service will allow advertisers to target specific types of Facebook users based on their browsing histories with pricing to be based on cost per thousand viewers, and spots to be sold via third-party technology partners.

Now read: LookSmart Announces Display Capabilities

What I'm suggesting is, that it's through Looksmart's capability in having an RTB Global OPEN Marketplace that handles up to 100 Billion 'events' per day that'll provide the 'plumbing' that's needed. And, always ensures protection of Facebook's user data, by use of a neutral, totally transparent & fully independent 'interconnector'.

Naturally, this has to be painstakingly tested and re-tested. And I'd suggest that this has been accomplished in confidence with the help of both (mentioned above), Nanigans and XA.net, Inc.'s Optim.al. That Facebook appears (a small percentage of upstream & downstream) in the Looksmart Clickstream as traffickers (at Alexa), supports the Co's claim that it evaluates anonymous consumer behavior. I do feel that this may also tell of Facebook generally 'testing' these ads in the following of anonymous users across Looksmart's marketplace?

Alexa: www.alexa.com/siteinfo/looksmart.com#

All this doesn't quite measure up with TechCrunch's guide to how the Facebook Exchange will work but my reckoning is based on bringing it all together in a ONE marketplace giving those targeted eCPMs broader reach. In time, it may include those type individual ads - capable of being served in real time, additional to also being placed along-side a Search Engine's SERPs, as shown.

TESTING

On P5 of the LOOKSMART LTD CC transcript, the CEO advises:

"We have done extensive proof of concept work and believe that we have eliminated, at this stage, the key technical uncertainties about the new integrated platform. The devil is in the detail, of course, but I believe it is reasonable to say that it is now a matter of development and execution, not a matter of technical feasibility."

Yes, The devil is in the Detail

Always an opinion,

LOOK: $0.9750 Down 0.0050 (0.51%) | After Hours: $0.97 Down 0.01

LC

ps; Re: Facebook Will Soon Get To Explode "O"

pps; Facebook Shares Hit New Low: Is Zuckerberg Worried?

Disclosure: Long LOOK