The New Features Fueling Facebook's Future

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April 30 (Bloomberg) -- Suntrust Robinson Humphrey's Robert Peck and Bloomberg's Jon Erlichman discuss Facebook offering improved tools and a more streamlined experience for logins, including the option to sign in anonymously. They speak with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

It's always an interesting crowd.

There are a lot of developers and tech ceo's here.

Qualcomm helps power a lot of the stuff that facebook is doing.

The reason that mark zuckerberg and facebook need to cater to developers is because to succeed in the world of mobile phones and tablets, it needs them.

Facebook on its own is just an app on your phone or tablet.

If they are the tool you use to build apps or they are involved in the building of apps, and they can sell the developers on the idea of, we are going to help market your app, plus we can help you make more advertising dough -- that may increase the appeal of facebook, and maybe it helps to keep facebook following along with you everywhere you go when you are on your phone.

The login is part of that.

Is enough to keep developers really interested?

Yes.

It is one of the biggest announcements they have made.

This takes limited inventory that advertisers can go off on facebook and opens it up to the entire mobile web.

They have a $30 billion market their.

They're going to take about a third of that.

$10 billion of incremental volume for facebook.

Explain how it works.

I'm an advertiser and i come to facebook.

They can say, i love to advertise on facebook, but can you get me on other apps?

A news app, gaming app.

You can do that today already.

Facebook brings all the data and information they know about you.

It will be one of the two or three players in this space.

This is another example of big data, and the power of big data.

Facebook really trying to capitalize on it.

Consider this, a couple of years ago, facebook had no advertising tied to mobile.

And now it is the dominant source of advertising revenue for them.

That was them going public and saying, here is what we can do.

We can use targeted information.

Robert mentioned ad inventory.

Facebook does not want to get you angry with too many ads in your feed.

There are only so many targeted ads they will put in front of you.

That's the reason why they have to go to the developers.

They are out of ad space.

If they want to keep growing, they have to lean on these other players who can collectively put in good, targeted ads.

Their hope is that everyone makes more money.

This is a $30 billion opportunity?

Yes.

There is $3 billionon on targeting.

When they started the mobile app installs, it was a new ad unit and took off right away.

This could take off right away.

What do you think facebook is doing right here that twitter has not managed to do?

They have made the reach to the global masses.

The euphemism is, is your momn o n facebook?

She's probably on facebook.

My mom is on facebook before i was on facebook.

One of the scary things about facebook, if my mom is on it, chances are the kids are looking for something else entirely.

That's true.

Kids are not leaving facebook.

They are adding to their social portfolio.

They will not leave facebook.

This is an opportunity for facebook to capture those younger users.

We have seen this through the acquisition of whatsapp, trying to expand and augment their user base.

Absolutely.

They have been very bold in doing those kinds of things.

They have not talked a lot about whatsapp and instagram today, maybe they can allow these developers to think of themselves as a -- in a position to create the next big app.

I think it is a big issue.

This idea of having a more anonymous login.

Facebook has this advantage that long ago they said, we will make it easier for you to grab a new app using your facebook login.

Facebook said today, we are willing to leave some of that on the table and take some of the information of what is being shared out of the mix so we can continue our reach.

Thank you.

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