Facebook 2Q17 Earnings Call Notes

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Mark Zuckerberg

2B people use FB every month

“This quarter we reached an important milestone for our community. 2 billion people now use Facebook every month, and more than 1.3 billion people use it daily. ”

AI police on FB

“I am excited about how AI will improve people’s experiences across our products. We’re finding AI is both delivering consistent improvements to many of our systems, like News Feed, search, ads, security, and spam filtering and more. But more than just improving these existing experiences, I expect AI to change the way that we do business in some important ways. So for example, today to keep our community safe, we rely on people flagging content that might violate our community standards for us to review. In the future, AI will be able to help flag more of this content faster before people have even seen it. Now we’ve started using AI to fight terrorism and keep propaganda and extremist accounts off Facebook. We’ve even started experimenting with using AI to understand texts that might be used to promote terrorism.”

Now AI can target you with Ads

“On the business side, we’re seeing a large shift in the way that marketing works. In the first wave of marketing, people would buy ads and media they thought their customers might watch like a TV show that had similar demographics, but they wouldn’t know who saw their ads. The Internet gave people the power to target their messages to people who actually might be interested and to measure results much more precisely, and that was a big improvement. And now AI is taking this a step further. Now you can put a creative message out there, and AI can help you figure out who will be most interested.”

Sheryl Kara Sandberg – Facebook, Inc.

David M. Wehner – Facebook, Inc.

Slower supply growth leads to higher pricing

“I would really just point to the overall dynamics of the system. And again, what we’re seeing is with slower supply growth, that’s going to play out to higher pricing. And again, are we effective? And we’ve been effective at delivering good return on investment for our advertisers and getting better at converting what we have as inventory into what they care about as outcomes. And that from a systemic point of view is what’s playing through there.”