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Facebook now +5.3% AH; ad prices soar, impressions drop

  • Facebook (NASDAQ:FB) will make efforts to accept more payments on its platform, says Mark Zuckerberg on the Q2 CC following a question about Facebook's Buy button and related payments tools (still in testing). However, he adds advertising (92% of Q2 revenue) will remain the company's main business.
  • Zuck also reiterates (in spite of Facebook's efforts to grow public sharing) creating private spaces for users remains a core objective. He states Messenger (now run by ex-PayPal chief David Marcus) will play a pivotal role in furthering this goal. WhatsApp presumably will also play a role.
  • New CFO David Wehner states Facebook's ad prices effectively more than doubled Y/Y due to a shift towards more costly news feed/mobile ads (improved targeting also didn't hurt). This enabled ad sales to rise 67% in spite of a 25% drop in ad impressions.
  • Sheryl Sandberg notes the acquisition of video ad tech platform LiveRail will further Facebook's ad network ambitions; the company just recently launched its mobile ad network. She also declares marketers are getting more creative with Facebook campaigns, comparing them to TV campaigns in the process.
  • Facebook now has 399M mobile-only MAUs (30% of all MAUs). North America made up 44% of Q2 revenue, down from 47% in Q1. North American ARPU ($6.44) still dwarfs Facebook's global ARPU ($2.24).
  • Live blogs: I, II, III.
  • Prior Facebook earnings coverage

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Comments (3)
  • James Sands
    , contributor
    Comments (2426) | Send Message
     
    Payments is going to be tough to crack. I see Facebook working with credit card companies at first, which does not preclude Paypal eventually breaking into the scene too. Clearly, Marcus is not focused on payment-related business here either.

     

    eBay naysayers attempting to use these events as added fire against eBay were sorely mistaken.
    23 Jul 2014, 08:41 PM Reply Like
  • gordybrown
    , contributor
    Comment (1) | Send Message
     
    Wow, I guess you were on vacation when they said they hired Marcus so that Payments and Messenger could overlap? Additionally, Paypal uses credit cards for backup payments and authentication. Where have you been Mr. Sands, I wanna go there.

     

    My only concern would be how all this can be folded in without a conflict of interest or raising red flags with anti-trust concerns.
    23 Jul 2014, 11:54 PM Reply Like
  • James Sands
    , contributor
    Comments (2426) | Send Message
     
    Gordy,

     

    News headlines and talk are cheap (similar to your reply), which typically translate to putting pressure on and making decisions for the weak and fickle minded. Facebook has stated two contradictory things publicly already related to Marcus in a short time span. Non of this information is valuable nor relevant.

     

    We are still waiting for Google+ to overtake Facebook and Facebook to overtake LinkedIn business models by the way. Not gonna happen. Similarly, Paypal will continue to grow as long as credit card business grows, they move to the same beat.

     

    Investing is always part analysis and part deflection of speculative banter which more times than not, never becomes a reality.
    24 Jul 2014, 11:07 AM Reply Like
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