What’s next for FB Mobile?

@ogillin07/2012

Agenda

• Monetizing social discovery• Sponsored stories as content … with benefits

on Mobile• Organic post targeting for pages• Top Facebook News since IPO• Timeline for Mobile• New features: Post Saving, Pages you may like• Some Statistics in BE, FR

Monetizing social discovery

• users really don't like traditional mobile ads: On mobile phones, consumers are most likely to pay attention to sponsored stories or links over other forms of ads, according to a new study from Prosper Mobile Insights.

• But, the real key is monetizing social discovery: In the same study from Prosper Mobile Insights, consumers cited relevance as the mobile ad factor most likely to draw their attention. Social discovery -- the use of social apps on mobile devices to find nearby people and places that are most relevant to what users are doing at that particular moment -- may be the key business model to make social work on mobile.

Sponsored stories as content … with benefits on Mobile

5/5/12 FB Sponsored stories on mobile

CTR 15x higher (1.3% vs 0.086%)Clicks 30% cheaper ($0.42 vs $0.6)BUT CVR (Conversion) is 16% lower

Fans coming from mobile comment 22% more than desktop users.Mobile users "like" posts 63% more than non-mobile users.

"They aren't even seeing them as ads”"They're just seeing them as organic stories.”Based on 200 million ad impressions

Promoted Tweets engagement rate 1% - 3%

Organic post targeting for pages• The full set of characteristics that can now be targeted

include:– Age– Gender– Interested In– Relationship Status– Education– College Grad: College Name, Major– In College: College Name, Major, Years– In High School– Workplace– Plus the old options: Language, and Location: Country,

State, City• only apply to News Feed distribution.• All posts will remain visible from the page’s Timeline.

This will allow the friends of fans who don’t meet the targeting criteria to see stories about their friends Liking or commenting on the post.

• deprecating an option to publish updates to users who clicked Like buttons on Open Graph objects around the web, so this upcoming targeting option for pages could be a replacement.

• interest-targeting will not be an option for now.

current

New

Top FB News since IPO• 5/30: Facebook Rolls Out ‘Promoted Posts” Feature [Inside Facebook] - Promoted Posts is designed to

make it easy for small businesses to pay for more impressions in the news feed• 6/5: Buy Mobile-Only Ads On Facebook • 6/11: Apple Gives FB Deep Integration Into iOS 6 • 6/13: Facebook Exchange: A New Way For Advertisers To Target Specific Users With Real-Time Bid Ads• 6/19: They Work! Facebook Mobile Ads Are Clicked 13X More, Earn 11X More Money Than Its Desktop

Ads• 6/21: Problems For Monetization: Lawsuit Forces Facebook To Let You Opt Out Of Sponsored Story Ads• 6/22: Facebook Ads and Sponsored Stories Are Now Running On Zynga.com, Previewing A FB Ad

Network• 6/27: Facebook Now Lets You “Like” and “Follow” Someone In Any App, Get Their Updates In News

Feed - All part of Facebook’s plan to become the only news feed you need, and monetize attention with ads.

• 7/6: NOT LAUNCHED: New Mobile Target Ads Based on App Usage• 7/12: The Facebook Tweak That Killed A Billion-Dollar Industry [CNN Money] - The switch to the

Timeline design for Pages reduced traffic to some Page apps by up to 90%.• 7/19: Facebook Begins Testing Sponsored Results, Its First Search Typeahead Ads• 7/25: Zynga Explains “Challenging” Q2: Facebook Platform Changes - Facebook aiding discovery of new

apps over the most popular ones led to revenue decreases, causing its stock price to plummet.

What’s next?

Mobile inventory to grow (org. growth, +kids, iOS 6)

Better Targeting based on location (OS only now)

Deeper tracking (Cost-Per-Install FB store)

BUT still limited by size, need new model (ARPU down)

Timeline for Mobile

• 01/12 Mobile Timeline 07/12 on Mobile Pages

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+ call

Be awareLogged inLogged out

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FB Post Saving Options on Mobile

Another tool for brands?

Emphasize quality content

Potentially a new metric for judging content quality, similar to “favorited Tweets”

Sponsored Stories to “Pages you may like” mobile module

Started in June without sponsorsIncrease mobile inventoryEffect on CTR TBDFrom “Recommended pages” on desktop: mix of suggestion or sponsored stories only ? TBD

Some StatisticsBE FR

Population 11m 65.4m

Internet Population 8.5m 50.3m

Facebook 4.6m (Netlog 4m) 24m

Smartphone population

2.4m (22%) 24.8m (38%)

Mobile Social Network (of smartphone)

1.7m (71% frequently)750k (31% daily)

17m (70% frequently) 9.4m (38% daily)

Other smartphone activities

Email (47%), Search (36%), internet daily (39%)

Email (62%), Search (48%), internet daily (39%)

Mobile OS iOS 53%, Android 32%, Nokia 7%, Blackberry 2.2%, Win 1.6%

iOS 54%, Android 35.3%, Bada 2.4%, Nokia 1.8%, Win 1.3%