2Q EARNINGS CALL: Facebook COO Sheryl Sandberg Touts Advertising Growth, News Feed Ads

Not surprisingly, Facebook’s second-quarter earnings call devoted a great deal of time to the social network’s advertising growth, with Chief Operating Officer Sheryl Sandberg devoting the majority of her remarks to the subject.

Sandberg addressed the issue of user satisfaction with ads in the News Feed, saying that they make up about 5 percent of total stories, and adding:

We haven’t seen a meaningful drop in satisfaction when we ask people about their experience with Facebook, compared to responses to the same question asked of people using a version of Facebook without News Feed ads.

On the advertiser side, she said a Datalogix analysis of 55 campaigns on the social network over the past six months saw marketers achieve median returns on ad spend of 5.9 times on campaigns that included ads in News Feed, compared with 3 times on those that did not.

Other second-quarter achievements highlighted by Sandberg included:

  • Between 88 million and 100 million people are using Facebook during U.S. primetime television hours, and marketers are taking advantage of those numbers.
  • Consumer-products manufacturer Reckitt Benckiser more than doubled its ad spend on the social network following the success of campaigns for its Lysol and Airwick brands, which generated returns on ad spend of 2 times and 5 times, respectively.
  • Facebook continued to grow in the area of direct-response marketers, with growth in the ecommerce category alone doubling versus the second quarter of 2012.
  • More than 1 million active local businesses advertising on Facebook were more than double the year-ago total.
  • Nearly 18 million local businesses now have Facebook pages, up from more than 16 million at the end of the first quarter.
  • Revenue from mobile application install ads continued to grow.
  • The number of marketers using custom audiences has more than doubled since the end of the first quarter.

Readers: Will Facebook be able to continue this momentum, especially on the mobile side?

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