Facebook Inc (FB) Earnings Call Transcript: 2014 Q3

Operator

The next question comes from Anthony DiClemente with Nomura Securities. Your line is open.

Anthony DiClemente, Nomura Securities

Thanks a lot! First for Sheryl. I want to just come back to the theme of media measurement . You gave us some good prospective. Can you help me first party data versus third party data. Can you get where we need to go with brand marketers using your in-house tools like Adlesse or you know. Do you think you need validity and integrity of third party measurement source Nealson in order to get there? And then second question for Mark. Mark, I was just wondering where you see Facebook in this point in terms of its place in the hardware eco system given so much time spending your apps do you think it is possible that you can get more aggressive in devices, in hardware in order to achieve some of the longer term or 10 year goals that you laid out?

Thank you!

Sheryl K. Sandberg, Chief Operating Officer, Director, Facebook

Your first question. Data is really important for both measurement and targeting and when you think about first party and third party data you have to think about both of its usage. Currently with measurement, third party verification of that data can be very important. A lot of our largest clients and agencies built their own data systems which are very important part measuring and kind of certifying everything we do with them. So, we are using a combination of first party and third party. I think where this really gets interesting is around relevance and as I talk about as a major theme for us we think it is one of the best things we can do to drive more value for marketers and to improve consumers’ experience on Facebook.

Data is a great way of doing that. For example with custom audiences. Custom audiences is a combination of our clients using the data they have on their client base combined with that data we have, that we can target. Let’s say target one ad to existing customers to get them to engage more and buy and one ad to bring new customers and you can see how having a different ad to people that have never bought your product and a different add to people who are currently buying your product would make a lot of sense. And then you look at something like look alike audiences where we are looking to map customers to share their characteristics – age, demos, likes, interests with current customers. And all this takes a combination of first party and third party data all of which we do in a very privacy protective way.

Operator

The next question comes from Stephen from Credit Suisse. Your line is open.

Stephen, Credit Suisse

So, Sheryl from a product development prospective it feels like from the outside looking in that you have accelerated to roll the delivery of various products. So, I was wondering how are you thinking of higher product delivery cadence will change especially given the investment shift prior to 2015. Thanks!