Ad Age: In terms of what ads Facebook might
retire, do you think right-hand rail ads might ever go away? It
seems like marketers are much more enthusiastic about news
Carolyn Everson: The right-hand side -- which
is obviously only in the desktop environment -- is still serving a
significant purpose. I'll start with small and medium businesses,
which actually rely on that advertising unit a lot, all the way up
to big brands that use it particularly for Facebook exchange and
retargeting. So I don't expect we'll do anything in terms of having
it go away. I certainly don't foresee that coming... [But] we went
from 0 percent to 30 percent in mobile, and that is driven by a
move to news feed. The fact of the matter is that I'm having more
conversations with marketers and agencies where they realize the
power of news feed because it gets into people's hands on their
Ad Age: So 30% of last quarter's revenue came
from mobile. Do you see that continuing to tick upward?
Ms. Everson: I can't comment on any future
projections. What I can say is that our mobile growth numbers and
the interest advertisers have in mobile continue to strengthen...
And be it a photo or a video page post on news feed, it often takes
up almost the entire screen if it's on a smart phone. And that is a
beautiful creative canvas. So suddenly we've ignited a lot of
interest from the creative community. They're not thinking about us
as just that right-hand rail.
Ad Age: Do you see a lot of marketers who are
exclusively interested in mobile?
Ms. Everson: Yes, we definitely have marketers
that will say to us, can we consider doing a mobile-only deal? And
we're happy to entertain that conversation. There are some large
marketers that have been fairly vocal lately in the press around
their mobile-only deals, and that's a really important strategy for
them. I think a lot of the motivation behind those deals is to
institute very rapid change in the company. If they sign a
mobile-only deal, it makes the marketer and their teams realize how
important [mobile] is. The other thing I should say is that we also
have [the ability to target feature phones only] which we did not
have as of two months ago... [Advertising on feature phones] has
been a very important way for global marketers to reach consumers
in emerging markets.
Ad Age: There are no ads on Instagram yet, but
marketers are excited about it. What kinds of ads do you think
would work in that environment?
Ms. Everson: Instagram's growth is incredibly
impressive -- it's a 100 million-plus users now per month, and over
40 million photos are being uploaded now per month... In terms of
what marketers are doing, a lot of them are on Instagram now. Their
brands are represented, they're taking photos. You have Burberry,
Nike, GoPro, Red Bull, a lot of
brands that are probably the usual suspects.... So you can start to
imagine what we might do down the road because of that.
Ad Age: What does a native Instagram ad look
Ms. Everson: I can't comment on what we're
going to do with Instagram. What I can tell you is that [CEO] Kevin
[Systrom] has spent time with the client council and shared the
exciting growth that has happened on Instagram. And his advice and
our advice for all of our clients is that they get on it, see
what's going on and upload some photography about your brand that
makes sense to understand how the platform works.
Ad Age: What do you think the monetization
potential is for hashtags?
Ms. Everson: Hashtags are an important language
on the internet, and we found that people were using them quite
extensively on Facebook and they weren't able to aggregate those
conversations into anything that made sense. So you can imagine the
use cases down the road as people continue to use hashtags --
around content they're interested in, around travel, around all
sorts of topics -- that there will be a lot of interesting
opportunities. But there's no monetization plan right now for it.
This is a consumer product, and one that we'll continue to iterate
Ad Age: Do you feel like Facebook has taken a
step back from the concept of social ads? Over the last year, it
feels like the emphasis has shifted over to products like FBX and
custom audiences and lookalike targeting.
Ms. Everson: I'll give you a tidbit of what
just happened today in the U.K. I had two major client meetings,
and those clients came in talking about Facebook six months ago,
which [meant talking] about fans on your page, social context and
what I would call social-media tactics. And it was a really key
turning point in both of those meetings when I said that that was
Facebook six months ago. Where Facebook is today is about being a
mass reach vehicle in an incredibly targeted way. It's explaining
that we have all of the people that matter to [marketers] every
single day and on every single device that they want to reach