Because of those shifts in how people share, “we are talking about becoming video-first,” Zuckerberg said, a statement reminiscent of his decision to be mobile-first in 2012.
A key step toward becoming video-first is Facebook Live. Zuckerberg called out “Chewbacca Mom,” whose Live video was viewed 160 million times. He alluded to the shootings and violence that have been captured via Live by noting that the format “[shines] a light on important moments.”
One reason Facebook has been growing revenue faster than users is that it had plenty of open space to increase ad load. It grew ad impressions 49% year over year and the price per ad 9% this quarter.
But it warned investors that there’s little room left to grow ad load without hurting the user experience. Starting in mid-2017, it will have to grow the user base and time spent in order to increase its ad load.
Or it can look to Audience Network, which allows Facebook advertisers to target its users off-site. “We continue to invest in ad tech,” COO Sheryl Sandberg said. “Audience Network is a key part of that.” Garmin used Instagram, Facebook and Audience Network for the launch of its new watch, and saw a ninefold return on ad spend, she said. On the supply side, Sandberg said Audience Network is seeing “solid adoption” from publishers.
The company also said it will report Audience Network revenue on a net basis, making it tough to gauge the percentage of revenue Facebook takes.
Facebook is juggling a number of long-term efforts, from starting to give businesses a foothold in Messenger to its virtual reality tech, Oculus.
One of those is better search functionality in Facebook. Engineers are improving the ability to find people, businesses and content via search. Down the line, Zuckerberg said, there’s an opportunity to capture intent data via Facebook search. For now, though, search engine giant Google makes more in a quarter than Facebook does in a year.