Andrew Bosworth on FB ads

In June 2012, Facebook launched FBX, an ad exchange that allowed advertisers to buy retargeted desktop ads using third-party tools like Criteo and AppNexus. The idea was to revolutionize online marketing and a chance to compete with google , which earns $10 billion from the Americas alone.

This memo lists a few advantages:-Inventory advantage-Data advantage-Platform advantage

And a Few threats:Consolidation - This will reduce data advantage and create network effects which will reduce their ability to compete

But in 2013, after a key meeting of Facebook's top ad tech execs with COO Sheryl Sandberg, a decision was taken that would severely limit FBX's future.

This is Andrew "Boz" Bosworth's strategy memo on how FB should approach ads. Boz is a personal friend of Sriram and ex-colleague and this memo, sent in December 2012, showcases Bosworth's strategy skills.

"We think the heart of the gamble revolves around how much Facebook believes it can shape the marketplace withinwhich it operates. We have two options: Go For Broke, or Take The Money. I will detail those later." wrote Andrew.

Friction - People getting comfortable working with DSPs making harder to move budgets later on.

Senior ad buyers said they believed FBX would "quadruple" the market — which would mean that $8 billion in media spending was up for grabs. Facebook ad sales boss Carolyn Everson said she expected FBX to "unlock a significant amount of spending around the globe." But FBX was barely able to get to $1B by 2015.

Disintermediation - If they felt that if they werent shaping the marketplace then others will do it.