Description of Meta Platforms Inc's Business Segments
We focus on providing value for all kinds of marketers, including brand marketers,
direct marketers, small and medium-sized businesses, and developers by offering
a unique combination of reach, relevance, social context, and engagement:
Reach. With over one billion MAUs, Facebook offers marketers the ability to reach
a vast consumer audience.
Relevance. Marketers can target users on Facebook based on demographic factors
such as age, location, gender, education, work history, and specific interests
that users have chosen to share with us on Facebook. In addition, marketers may
choose to match their own data or third-party data with ours, so they can find
their customers - or those who look like them - directly on Facebook. We believe
that users have a better experience when ads are effectively tailored and, therefore,
more relevant to them.
Social Context. We believe that the recommendations of friends have a powerful
influence on consumer interest and purchase decisions. We offer marketers the
ability to include "social context" with their marketing messages. Social
context is information that highlights a friends connections with a particular
brand or business.
Engagement. We believe that the shift to a more social web creates new opportunities
for businesses to engage with interested customers. Many of our ad products offer
new and innovative ways for our marketers to interact with our users, such as
ads that encourage comments, include polls, invite people to an event or help
users discover and install mobile applications.
Any brand or business can have a presence on Facebook by creating a Facebook Page.
Through Pages, we give brands the opportunity to form direct and ongoing relationships
with their existing and prospective customers, with the potential to turn them
into valuable advocates. When a Facebook user "Likes" a Page, the Page
owner has the opportunity to publish stories to the persons News Feed on an ongoing
basis. We believe that this ongoing connection provides businesses with a significant
advantage as compared to advertising on traditional websites. In addition, businesses
can use Pages to drive awareness, traffic to their e-commerce websites or physical
stores, sales, and ultimately customer loyalty. We do not charge businesses for
their Pages, nor do we charge for the resulting organic distribution of their
content. However, Page owners can use Facebook ads to reach a larger audience
or utilize our Promoted Posts feature, which enables businesses to pay a fixed
fee to boost the distribution of posts that they care about to people who have
"Liked" the Page, to gain more prominent distribution.
Facebook offers products and tools that enable marketers to leverage our unique
combination of reach, relevance, social context, and engagement.
Facebook Ads. Our ads, including sponsored stories, offer businesses the opportunity
to direct a user to specific content, a destination web page or a Facebook Page
if the user clicks on the ad. Our ads provide our users with a consistent ad experience
and enable marketers to deploy and adjust campaigns rapidly.
Currently, ads can appear in multiple locations including in the right-hand side
of most page types on personal computers, and in the News Feed on personal computers
and mobile devices. Ads with social context allow marketers to highlight the interactions
of a users friends with a brand or product, such as Liking or Commenting on the
marketers Facebook Page. Ads with social context respect users privacy settings
and may be shown only to the people users have already shared their activity with
on Facebook.
Facebook Ad System. When marketers create an ad campaign on Facebook, they specify
the types of users they want to reach based on information that users chose to
share. In addition, marketers can use other products such as FBX and
Custom Audiences to more precisely target their desired audience. Marketers
indicate the maximum price they are willing to pay for their ad, per click (CPC)
or per thousand impressions (CPM), and their maximum budget. Our system also
supports guaranteed delivery of a fixed number of ad impressions for a fixed
price. Facebooks ad serving technology dynamically determines the best available
ad to show each person based on the combination of the persons unique attributes
and the real-time comparison of bids from eligible ads.
Ad Analytics and Facebook Insights. Marketers can use our analytics platform
to track and optimize the performance of their campaigns. Facebook Ad Analytics
enable marketers to gain insights into which ads were displayed and clicked
on. These analytics help marketers make modifications to their ad campaigns
to maximize results.
For marketers with Facebook Pages, Facebook Insights provides timely information
about the performance of their Page and related posts. The data include the
number of users who Liked and Commented on the Page and a metric, "People
Talking About This," which shows how many stories about the marketers
brand are being created and shared, among other aggregated and anonymized engagement
data.
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