Facebook's Perfect Storm of Advertiser, User Growth

The transcript discusses Facebook's strong position in the advertising market, highlighting its immunity to excess inventory issues faced by other companies like Google and Yahoo. It explores Facebook's growth in user engagement and advertiser base, leading to increased pricing and market share. The conversation also touches on the challenges of maintaining growth and managing expenses, as well as the potential cannibalization from Instagram. Future revenue streams from Instagram, WhatsApp, and innovations like Oculus VR are also considered, emphasizing Facebook's ongoing evolution and market strategy.

What is one reason Facebook is not experiencing excess inventory like other companies?

• They have a smaller advertising market share.

• Their user engagement is declining.

• They have fewer advertisers.

• Advertisers are following where users spend their time.

How has Facebook's pricing trend been described in the transcript?

• Pricing has fluctuated unpredictably.

• Pricing has remained stable.

• Pricing has decreased by 5%.

• Pricing has increased by 5%.

What is a potential concern for Facebook as it continues to grow?

• Decreasing user engagement.

• High expectations for expense management.

• Lack of new advertisers.

• Declining market share.

What is one of the future revenue sources for Facebook mentioned in the transcript?

• Yahoo Search

• Oculus and VR

• Google Ads

• LinkedIn Ads

Which platform is mentioned as starting to contribute to Facebook's revenue?

• Twitter

• Snapchat

• WhatsApp

• Instagram