It made $28.6bn from advertising last year alone – clearly that business works for Facebook. But what advertising works for Facebook’s customers?
That is a question Facebook advertising research director Daniel Slotwiner has been asking himself lately.
Speaking at a Beet.TV leadership summit, he pondered: “How do you measure the value of video?”
“We’re thinking a lot about what’s different about the video we provide versus other formats,” Slotwiner added. “We’re spending a lot of time trying to understand the relationship between outcomes and duration, how to evaluate creative, what’s the relationship between certain types of outcomes, and what’s the relationship between the formats.”
And Slotwiner has come to a conclusion. “The biggest levers for value and ROI are reach and creative,” he declared.
Facebook certainly boasts reach. Last quarter, it claimed a daily active user (DAU) metric of 1.23bn – almost a sixth of the global population.
But Slotwiner says times are changing. “Reach was easy to achieve on TV 30 years ago,” he said. “It’s still possible to reach as many people, for sure – but you have to do it in a lot of different places.”
He was interviewed by MediaMath chief marketing officer Joanna O’Connell.