In their last earnings call on October 28th, 2014, Mark outlined his plans for the next three, five and ten years. You can get the full-transcript here if you’d like, but I’ve taken the time to summarize it and pull some key sections from the 20 page behemoth.
The key points:
- Native video is a huge focus in the upcoming year
- Mobile advertising is key, but growing the reach and improving the experience of the messaging platforms they own comes first.
- Oculus is a long-term bet on a 10+ year horizon. Facebook sees it as a potential game-changing computing platform after it ramps up adoption to 50-100MM units over the next several years.
- Facebook will continue to break out the web experience in to smaller single-purpose apps that “do one thing very well.”
- China is important but it’s a slowly improving relationship.
Facebook continues to grow their base and increase their ARPU, especially on mobile.
Looking at our business, we continue to do well. This quarter, total revenue reached $3.2 billion and advertising revenue grew 64% year-over-year. Mobile now accounts for 66% of our advertising revenue.
Three Year Goals
They will continue to focus on growing their daily active user base.
864 million people use Facebook every day, and across our core products we continue to see huge engagement.
Grow their engagement between public figures and their fans.
…[W]e’ve continued to build on our results and there are now more than 1 billion interactions every week between public figures and their fans on Facebook.
Prioritizing native video and increasing viewing across the platform. Some of growth could be largely attributed to the ‘Ice Bucket Challenge.’
This quarter we announced a new milestone for video on Facebook, achieving 1 billion daily views of native videos.
Instagram continues to be grow and increase engagement. This has helped drive Instagram’s strong international growth, which in some countries has achieved more than 100% year-over-year growth. Globally, people using it now spend around 21 minutes a day on average using the app.
Zuckerberg quickly glossed over how they’ll improve the marketing experience and cited the focus on the news feed experience and their Atlas ad platform as the way to do so. That said, the news feed algorithm has become the bane of many marketers existence.
Five Year Goals
Facebook is going to double down on winning messaging with WhatsApp, Instagram and Messenger.
They hope to become a major computing platform that all apps are built on. The hope is that Facebook can help apps grow faster with their reach.
Over the next few years our goal is to make Facebook the cross-platform platform that allows developers to build, grow and monetize their apps across every major mobile platform.
Focus on pushing App Links:
App Links is now used by hundreds of apps across iOS, Android and Windows Phone, and in just the past six months, developers have created links to more than 3 billion individual destinations in these apps.
Ten Year Goals
Expand internet adoption via Internet.org
In July we worked with Airtel to launch the Internet.org app in Zambia. This provides free data access to a set of basic internet services for health, education, employment and communication.
Facebook wants to be the computing platform for VR and AR.
[W]ith Oculus we’re making a long-term bet on the future of computing. Every 10-15 years a new major computing platform arrives, and we think virtual and augmented reality are important parts of this upcoming next platform.
Oculus continues to be hot.
We continue to see a lot of excitement in the developer community, and we’ve now shipped more than 100,000 Rift developer kits to over 130 countries.
Interesting Tidbits From the Q&A
On a question about Oculus’ relevance in the short term, Mark had an interesting response.
I don’t think that this is going to be — it needs to reach a very large scale, 50 million units to 100 million units before it will really be a very meaningful thing as a computing platform.
So when I’m talking about [Oculus] as a 10-year thing, it’s building the first set of devices and building the audience and the ecosystem around that until it eventually becomes a business.
Mark, speaking more deeply about where they’ll be focusing on public content in the upcoming year.
Video is a very big priority. News is a very big priority, because a lot of people want to share that on Facebook already, and enabling public figures, whether they are celebrities or athletes or actors or politicians or leaders in different kind of communities, to get on Facebook and use the platform to distribute the content that they want.
When asked about mobile payments, and a rumor that payments will be added the Messenger, Mark responded by stating that a focus on the ad business is smarter to build and it’s better to partner on the payments side as there are smaller potential margins.
[P]ayments is an important part of the online business ecosystem. But we’ve traditionally thought about this as something that we’re going to partner with other companies on to enable great solutions, rather than trying to compete and do it as a business ourselves.
Payments tends to be fixed fee, whereas in ads because of the option model, there’s really good price discrimination built in, right? So a partner or business who is willing to pay us 30% of their revenue can bid that, and someone who’s willing to only pay 5% of their revenue can bid that.
￼￼Mark spoke generally on a trend for mobile apps to increasingly focus on doing one task incredibly well and how Facebook is going to slowly break up in to these single-purpose apps.
Mark ended on the question of Facebook’s future in China.
[W]e’re already doing more in China on the business side than I think a lot of folks think about…Our approach to China and every country is very long-term. We’re going to be here for decades, and we want to create good relationships with these countries and businesses around the world that will help and grow over the long term.
What’s your take – is Facebook missing a huge trend?
This post was originally posted on kapuno.com.