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Recap: Facebook’s Q4 2014 Earnings Call

Written by: Juliana Casale, Director of Marketing

Facebook’s Q4 2014 earnings call yesterday afternoon was one for the books, with healthy growth in YoY revenue (58%) and Q4 revenue ($3+ billion) signifying a strong start to 2015. CEO Mark Zuckerberg and COO Sheryl Sandberg continued to hammer on their mission to deliver “people-based marketing at scale,” echoing Q3‘s themes of quality content, targeting, and measurement. The importance of being where the customer is (mobile) also remained the same, but an emphasis on not just looking at clicks, but whether a campaign moves units off shelves was added to the conversation.

For other takeaways from the call, read on:

Stats and Facts

Facebook 2014 revenue

Reach

  • The Facebook community is comprised of 1.39 billion monthly active users
  • Time spent on Facebook per Daily Active User is up more than 10% YoY
  • Facebook Messenger has 500 million Monthly Active Users
  • WhatsApp has reached 700 million Monthly Active Users

Engagement

  • In 2014, Facebook video posts per person increased 75% globally and 94% in the US
  • 50% of Facebook Daily Active Users view one video or more per day
  • Facebook, Instagram and WhatsApp users share 2 billion+ photos daily
  • WhatsApp users send 30 billion messages a day

Facebook daily active users Q4 2014

Features

  • The number of apps in the Facebook Audience Network has more than tripled
  • Facebook Search has already indexed one trillion posts
  • Travel company Thomas Cook reached 30% of the Belgian population in one day and achieved 3.85X ROI using Facebook’s Custom Audiences

Takeaways for Advertisers

Missed connections – 69% of Facebook’s ad revenue in Q4 came from mobile. Despite that impressive figure, Sheryl Sandberg once again pointed out a lag in marketer adoption of mobile as an advertising channel vs. the amount of consumers that access Facebook products through smartphones, laptops and tablets. Overall, 25% of consumer media time is spent on mobile, but only 10% of ad budgets go to mobile. In addition, Facebook represents a tiny part of advertising budgets considering that people spend 20% of their time between Facebook mobile and Instagram.

Shift to rich media – Mark Zuckerberg explained the evolution in content shared on Facebook over the past five years as a journey from text to photos to video. Facebook is currently focused on encouraging consumption of user generated video so that video advertising in the news feed will blend in more naturally.

Relevant content – Facebook recently launched a search feature to index content and surface recommendations from friends. Advertising is not currently on the table, but it’s worth keeping an eye on.

Looking for further details on the call? Here’s some additional coverage:

Or you can go straight to Facebook investor relations to view the slides, listen to the call, and read the transcript in full.

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