Facebook Inc (FB)’s Q4 2014 Earnings Conference Call Transcript

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During the holiday season, we saw many clients telling us stories creatively through video. 2014 was also the year we began scaling Instagram apps. In Q4, we rolled out Instagram apps in Australia and Canada. Marketers are excited to have access to the 300 million people who use Instagram and the creativity it inspires for seeing beautiful, creative and great results from brand marketers across verticals. From insurance and text to app from retail to entertainment for example as one of our first Instagram video advertisers, Banana Republic developed a series of videos to promote its new VR clothing line. The videos showed fashion sketches from the new collection and over 23 point left in ad recall. While it’s still early and we are being delivered in our app, we believe that Instagram will become core to advertisers mobile brand building efforts.

We also made progress growing the number of marketers using our ad products. Custom audiences are speed of proprietary targeting products has become an essential tool for segmenting current and potential customers. Conversion tracking away from marketers to measure the impact of their campaigns online is also seeing writer adoption. We have made it easier for businesses of all sizes to plan and manage their ad campaigns and for small businesses to use our targeting tool. Travel Company, Thomas Clark recently used Facebook in Belgium to reach a broad audience and used custom audiences to send targeted messages to existing customers based on the places they expressed interest in. They reached 30% of the Belgium population in just 1 day and achieved a 3.85 times a return on investment. Results like these are attracting more marketers of all kinds to our platform.

Finally, we made great progress in improving ad relevance and measurements. To do this, we made significant investments and build our core measurement and targeting tool as well as ad tech. Earlier in 2014, we introduced ad buying capabilities based on reaching frequency matrix which is similar to how brand marketers buy tv ads and therefore enable better cross comparison. We improved our ads manager product to give better insights into ad campaign for audience and impact. In the fall we relaunched Atlis to help marketers reach real people and measure results across multiple devices. [Unidentified Company Name] was our first global client and this month we announced a partnership with Avast to further expand globally. We also invested in audience network which helps marketers extend their campaigns that of Facebook and Livewire which provides publishers with video tools to monetize their inventory more efficiently.

Heading into 2015, we are excited to build on the progress we have made with our core ad product as well as with newer areas like video, Instagram and Adtech. It’s still early days in all of these efforts, there is a lot of hard work to do and we plan to invest aggressively. Our ultimate goal is to be a critical business partner to our clients providing people based marketing at scale to build their brands and move their products off shelf. Over the past two weeks, I have had a chance to meet with many of our largest global clients and agency partners and talk about how we can drive real business results for them making every impression count and every dollar they spend improve their bottom line. Our clients here are excited by the opportunity to use video, Instagram and ads on and off Facebook to reach the right people with the right message. In turn, other ads become more relevant, we provide a better experience for the people who use Facebook.

Coming up is our biggest year ever, I want to say a special thank you to the Facebook teams around the world, to our global sales engineering, product designing and infra structure team. Your accomplishments over this past year are the reason our business is in such a great place. To our entire company, I feel lucky to work with you as we stay focused on our priorities and work together to help connect the world and to our clients. Thank you for your partnership and your trust in us. Heading into 2015, we have big opportunities and a lot of work ahead. Thanks and now here is Dave.

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