Does Facebook chief operating officer Sheryl Sandberg see television as a competitor, a complement or a fading star when it comes to advertising?
During the company’s first-quarter earnings call Wednesday evening, Robert W. Baird & Co. analyst Colin Sebastian asked if Facebook could “offer some perspective on how much of the video ad spending on Facebook applications are incremental to television budgets, or if there’s any evidence you’re seeing of a share shift,” and Sandberg replied:
On TV, we are definitely seeing people continue to advertise on TV and use us as a complement. So over time, we believe that the dollar shifts with eyeballs, and we want to earn it from our clients and be the best dollar and the best minute they spend and help them measure across channels.
I think increasingly, the question is not if you can do without TV, but it’s if you can do without mobile. And we’re working hard to help advertisers develop the video creative that really works for mobile because that really makes a really big difference. And we think the combination of the creative working for mobile but also the measurement and targeting we can do is a very powerful offer.
To share one of my favorite new examples, Subway, working with its agency, 360i, developed video ads and images for Facebook and Instagram to promote the limited-time-offer Reuben sandwich. And they used audience insights, targeting people aged 18 through 49 who purchase meat and cheese, and that’s just pretty incredible targeting. Nowhere else I don’t think you can actually target that way and people interested in fast food and encourage them to visit Subway. They then used Nielsen Brand Effects and were able to measure a 16-point lift in ad recall and a five-point lift in intent to visit Subway. So it’s a really unique combination of the power of creative that was designed for video for mobile with very specific targeting and very specific measurements.
Image courtesy of AndreyPopov/iStock.