Legend has it that when famous bank robber Willie Sutton was asked why he targeted banks, he replied, “Because that’s where the money is,” and the same logic applies to why Facebook’s quarterly earnings calls devote so much time to advertising. The social network’s first-quarter earnings call Wednesday was no exception.
Ad revenue accounted for $2.34 billion of Facebook’s fourth-quarter-2013 revenue total of $2.59 billion, so it’s no surprise that the social network’s advertising results and initiatives were the topic of the lion’s share of discussion during its earnings call Wednesday.
Facebook Exchange Partnerships Manager Josh Butler spoke about the social network’s real-time-bidding ad exchange to media buyers, agency trading desks, and brand marketers at OMMA‘s Real-Time Buying summit in Century City, Calif., last Thursday.
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.
Facebook is taking steps to provide more clarity to direct-response marketers on the effectiveness of their ad campaigns on the social network, announcing the extended beta test of a self-service conversion-measurement feature that it plans to roll out at the end of November.