Near the latest annual Facebook report – which I should warn you, it takes almost 100 pages – the social network company (FB) describes its biggest business risks. The first is the principle of any company that dares to describe the words “S”. “If we do not manage to retain existing users or add new users or if our users reduce the level of engagement with Facebook,” writes, “Our revenues, financial results and work may be significantly harmed.” Read a little further and you will find the second biggest risk for Facebook. It says: “We generate a significant majority of our advertising income. Loss of a merchant or a reduction in consumption by a trader with Facebook could seriously harm our business.” If you are wondering, it is significantly 89% of nearly $ 8 billion, which was needed last year. This is the reason why Sheryl Sandberg, the company’s main operating director, was in New York this week. Sandberg, of Bend Glory, she was in the city for the city’s annual advertising week. On Sunday, her company announced that she renewed Atlas, an advertising apartment he bought from Microsoft (MSFT) In early 2013. The new software promises to facilitate the marketing cross-remedy. (Or, in the words of Facebook’s marketing, it is based on “people.”) Sandberg on Tuesday found herself on a Wealth Brainstorm Tech Marketing Dinner At Mario Batali’s restaurant at the Del Post restaurant, explaining the marketing and executives of ads why even the most basic ad, which is not effective today. “If you look at how the announcements are served and the measures, the systems we used are no longer work,” she said. “Since they are based on cookies, they are not working on a cell phone. They do not work off the network on the network. And they don’t really understand that people have more devices. They really worked well when everyone had a desktop and nothing else. The old systems do.” Atlas, it continued, “allows advertising and measurement. So they are the right people and real results. Allows traders to be more efficient. which is only age and gender, which is the most basic aiming for anyone who works on the network does not come to the right people. ”
What Sandberg did not expect was to be put on defense ElloRival Pipsqueak, which seemingly took over the internet storm, confessing that he never, never, triggers advertisements. Wealth Editor Alan Murray, who interviewed Sandberg during dinner, asked her about the upper statue. She nodded, then threw her hands. “I didn’t see the page,” Sandberg said. “Ever since I was on Facebook, I constantly see things like,” My mom goes to Facebook, I get down. “ Saturday night live Is that Skit years ago. What is really important is that people get the best product. And they realize that a company that is very fired. “She continued.” People will continue to use Facebook if they realize that we do not tell who they are to anyone, if they understand that they have control over what they share and if we build a great product that is still connected. I think what we are really focused on all these things, especially the product. What we worry about getting bigger is, we want to innovate. And so we remain very focused on the continuation of the delivery of the product. ”
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The 800 pounds in the room, of course, was not so much Ello, whose story was just starting and can prove to be short. It was a tacit recognition that Facebook in recent months has caused the patience of its users with changes in their products dealing with their actual customers: advertisers. Today, the main appeal on Facebook is that its algorithms too often show content or ads that are irrelevant to its users. Second is that he does not respect his users’ privacy. “Neither Atlas nor Facebook tells anyone who you are,” Sandberg said. She would repeat the feeling, almost literally, later in conversation. However, you feel on the Facebook business model, it is clear that there is a lot of room for growth. On the one hand, the company still lasts trails, the company still lasts a company still trails Google (Goog) in total revenue from a wide margin ad. On the other hand, he completely moved to a mobile first company company, receiving more revenue than laptops but not for the first time in 2014. (“The transition to the mobile is the fastest adoption of the communication technology we have ever seen,” Sandberg said. “The word” on the net “will be something that is on the mountain, only from the road, on Facebook, can be embarrassed in your silicone, can be captured. Online, I think the answer is that we can win,” Sandberg said. ” Mobile is an average of 25% of the time for consumers and that is 10% of [advertising] budget. And as things get out of the out -of -net on the net, I think Google will succeed well [and] I think we can really good. “She added,” I think there is room for the growth of this pie. “Even while Facebook claims 1 of every 5 minutes the person spends on their phone connected to the Internet.
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The biggest challenge for Facebook, which now has 8,000 employees, and recently celebrated his tenth anniversary, is the way he can stay on the way to continuous growth. “Most companies mess it all on their own because they are not doing very well,” Sandberg said. “We are our biggest risk.”
Note the editor: Although Sandberg did not repeat the tilting in the conversation, she noted that there were many women in the room of the manager of marketing and it took a moment to spend the experiment in which she first asked the men in the room to raise their hands if they had ever told them they were “bossy” at work. (The little fist did.) Then she asked women. (Approximately four times more hands rose.)
“If you go to most business dinner in New York or San Francisco, most women in this room are used to being the only women in the room,” she said. “That’s what I want to change. That’s what we all want to change.” He jokes that the chief girl has executive leadership skills, is not something she can laugh, she said. There should be as little humor in thought as it would be for a chief boy. “That bias exists in all of us, “she said,” in men, in women, in me. “
This story is originally shown on Fortune.com
