Sheryl Sandberg: Facebook ad revenue is doubling all over the place

Above: Facebook COO Sheryl Sandberg

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Facebook chief operating officer Sheryl Sandberg continued using the words “doubled,” “increased,” and “accelerated” to describe the great advertising quarter the social network had during today’s quarterly earnings call.

Big opportunities for the company include local and mobile advertising, though Sandberg says marketing spend is on the up across the board.

“The time people are spending on mobile devices are increasing dramatically, yet mobile only represents 2 percent of ad spend globally and 3 percent in the U.S.,” said Sandberg during the call.

As of today, Facebook has increased its mobile advertising revenue from zero last year to 41 percent of its overall advertising gain. “All four marketer segments are growing and contributing” to Facebook’s growth, according to Sandberg, which include direct response marketers, local businesses, brand marketers, and those involved in Facebook’s “custom audiences product.”

Direct response marketers use advertising that can be measured through “cost per click” and “cost per transaction”-like models. Facebook saw ad revenue from e-commerce direct response marketers double since last quarter alone.

Custom audiences help similar marketers pair up their data with Facebook’s data to better target potential customers. Sandberg says that Facebook saw ad revenue double since last quarter for these marketers as well.

Facebook is also trying to focus more on the local markets, which Sandberg says is a big growth opportunity. Currently, more than 18 million local businesses have Facebook pages, but Facebook only has one million active local business advertisers. That’s still a fairly large increase for the company, however, which had only half of that this time last year.

Sandberg says brand marketers have something to be excited about as well when it comes to advertising in conjunction with other media.

Brand marketers might have an interesting opportunity in using Facebook’s advertising in conjuction with media. According to Sandberg, 88 million to 100 million people in the United States actively use Facebook while watching prime-time television every single night.

“We believe that over time marketers will increasingly rely on Facebook … to fundamentally transform their businesses,” said Sandberg, “We know we still have a lot of hard work to do, but we’re excited about this quarter and the opportunity in front of us.”


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