Facebook bets on ad tech, forewarns 55-75 per cent hike in expenses

Despite exceeding analyst expectations in its Q3'14 results, Facebook officials warn that expenses could increase by 55-75% in the coming year as the company plans strategic

e4m by Abhinn Shreshtha
Published: Nov 3, 2014 9:31 AM  | 4 min read
Facebook bets on ad tech, forewarns 55-75 per cent hike in expenses

Facebook's Q3'2014 results would have made stakeholders happy as the internet giant out once again outdid expectations by posting total revenue of $3.2 billion. Mark Zuckerberg, Founder and CEO of Facebook, said advertising revenue grew 64 per cent year-over-year.

Though ad revenues for individual countries were not revealed, Facebook CFO Dave Wehner said ad revenues had increased by 50 per cent or more in all four geographies (Asia, US & Canada, Europe and Rest of World).

Mobile ad revenue was approximately $1.9 billion or 66 per cent of ad revenue, compared to approximately $881 million or 49 per cent of ad revenue last year. Desktop ad revenue was up 11 per cent compared to last year. Mobile now accounts for 66 per cent of Facebook's advertising revenue, said Wehner.

In Q3, the average price per ad increased 274 per cent compared to last year, while total ad impressions declined 56 per cent. "The increase in the average effective price per ad was driven primarily by the redesign of our right hand column ads, which resulted in larger, more engaging ads that delivered more value to marketers and thus had higher effective prices. These right-hand column ads were also fewer in number, which drove the decrease of impressions in the quarter," said Wehner.

Despite the positive results, Facebook's shareholders could still be in for a rough ride in the coming year after Facebook announced that expenses could go up by as much as 75 per cent next year. This is attributed to increased spending on products, existing products, acquisitions and bringing in more talent. Continuous heavy investments are expected in ad tech and on developing the Oculus Rift platform that Facebook acquired recently.

"We’re investing in ad tech for a simple reason: consumers are shifting quickly to mobile and the advertising industry is not keeping up. 2013 was the first year the average American adult spent more time on digital media than watching TV and that gap has continued to grow. Today, the average adult in the US spends nearly 25 per cent of their media time on mobile, but advertisers spend only about 11 per cent of their budgets there," said Sheryl Sandberg, COO of Facebook. Both Sandberg and CEO and Chairman, Mark Zuckerberg stressed on the fact that ad tech and platforms like the Oculus Rift are "long-term investments". However, Sandberg's comments on ad tech, especially the relaunched Atlas platform, suggest that platforms and tools that allow marketers to serve relevant ads on the mobile and measure their efficacy will be a key focus area going forward and so the completion of the LiveRail deal and the rolling out of Audience Networks in Q3'14 can be regarded as important milestones for the company.

"These (investments in ad tech) are large and strategic investments. The payoffs will take time, but we think they provide a necessary foundation for the advertising industry to make the shift to mobile and for Facebook’s long-term growth. We recognize that by staffing engineers in these strategic ad-tech areas, we forgo shorter-term product improvements that would generate revenue more quickly. As we look toward 2015 we’re going to stay focused on capitalising on the shift to mobile, growing the number of Facebook marketers, and building products that make ads more relevant," said Sandberg.

Meanwhile, Facebook officials said investments would also be made to develop newly acquired products like WhatsApp, whose acquisition was finally completed last month. However, Sandberg cautioned that monetization on platforms like Instagram and Oculus Rift will be approached in a "deliberate and slow" manner.

"Over a five-year time frame, we have a number of services that we think are well on their way to reaching 1 billion people: WhatsApp, Instagram, and search are a number of them. And once we get to that scale, then we think that they will start to become meaningful businesses in their own right," said Zuckerberg. In fact, Zuckerberg has reiterated this point in earlier earnings calls too. It seems quite clear that despite early media and analyst speculation, we are unlikely to see any aggressive monetisation plans for WhatsApp or Instagram anytime in the next couple of years.
 

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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