Facebook 1Q14 Earnings Call Notes

A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

1.28 users

“We continued to grow our community in size and engagement, with nearly 1.28 billion people now using Facebook each month and almost 63% visiting daily.”

Instagram at 200m users

“Messenger and Instagram both reached 200 million monthly actives this quarter.”

An example of a Facebook advertising success story

“One recent powerful example is Sport Chek, Canada’s largest sports retailer. They recently decided to pull their paper circulars, which their company have relied on as its primary ad vehicle for 92 years for two weeks and replace them completely with digital spend, a majority of which was on Facebook. During those two weeks, national in-store sales grew 12% year-over-year and in-store sales of the items they promoted on Facebook grew 23%.”

Getting more sophisticated on measurements

“we’re also really pleased with the results we’re seeing from our investments in measurement tools. Our online conversion measurement tools enable our direct response advertisers to measure the impact their Facebook ad campaigns have on online sales. And, we recently launched new offline conversion tools to measure in-store sales, which have yielded positive initial results.”

Focus on building a great ad delivery mechanism

“Our ongoing focus will continue to be on improving the quality, relevance and performance of our ads and demonstrating value to marketers. We believe we still have a lot of opportunity to generate future returns by continuing to focus in these areas.”

News Feed ads get a premium price

“The increase in average price per ad was primarily driven by a mix shift with more ads being shown in News Feed. News Feed ads have significantly higher engagement, click through rates, and price per ad compared to right hand column ads, so a higher proportion of ads appearing in News Feed drives up the overall average price per ad.”

Everyone gets a unique ad experience

“every person who uses Facebook has their own experience and the experience including the ad experience is personalized based on the other content we have available based on how much they’ve engaged with ads we’ve shown in the past etcetera.”

Advertisers want to be able to measure their spend

“Nielsen OCR anything that helps advertisers measure their spend is really important. I’ve talked on the call a bunch about how measuring online and in-store sales really matters. It also matters to marketers to be able to measure their spend compared to other investments they can make.”

Neilsen OCR has helped advertisers measure their spend across channel

“what OCR has done, it’s given advertisers and marketers comparability between TV and digital and our spend. I think in those comparisons we do very well. And I think that is part of the shift that’s happening and its part of why we see growing interest from clients.”

Consumers spending more time online than watching TV now

“last year was the very first time those lines crossed and consumers spent more time in digital, which is mobile and desktop than they did on TV.”

“where we are right now is, the average U.S. consumer as an example spent 4.5 hours per day on TV but five and three quarter on digital and that’s largely been driven by mobile.”

Marketers are looking for the highest ROI they can find

“So we definitely believe there will be and continuous to be a shift happening. I talked about a print shift happening with that example of Sport Chek in Canada. But we see this across the board that marketers are looking for the highest ROI they can find and they should be comparing us and everyone else across and they do that not just across digital but across print, across radio, across TV, across any other vehicle they can.”

Investing in measurement will pay off

“I think our investments in measurement really pay-off here. We say to our clients all around the world, we want to earn your business because we want to be the best dollar and the best minute you send because both their dollars and their time are so valuable.”

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