PowerPoint Presentation

The Power of MobileThe most scaled and targeted mobile advertising platform1Facebook is mobileCONNECT with more people more effectively on mobileENGAGE people at the center of their Facebook experienceINFLUENCE customers to drive your brand and business resultsWe all know that marketers want to connect with, engage, and ultimately influence their customers. Facebook is enabling businesses to do this on a daily basis and mobile is an essential part of that process.2How does Facebook mobile stand out vs. competition? More reach to authentic peopleIncreased targeting optionsLarge engaging ad units

SponsoredFacebook mobile truly stands out vs. other mobile ad platforms.

Facebook mobile gives you more reach to authentic people.Facebook mobiles targeting options are the same as they are on desktop, meaning you have access to more sophisticated targeting than any other mobile ad platform. This lets you reach the right people with the right message. Lastly, the ads that appeal in the Facebook mobile news feed are extremely engaging letting your brand stand out. 3Connect with more people more effectively on mobileI will begin with connect. The first step for any marketer is to find and reach the right audience. Facebook enables businesses to do that every day with precision at scale. As consumers spend more and more time on their mobile phones, Facebook gives you the ability to connect with more of the people youre most interested in more often. 4Massive shift to mobile 75% of the worlds population now has a mobile phoneMore mobile subscriptions than people in next 2 yearsAlmost 50% of U.S phone subscribers are smartphone

Source: Nearly 1 Billion Smart Connected Devices Shipped in 2011 with Shipments Expected to Double by 2016, IDC, http://www.idc.com/getdoc.jsp?containerId=prUS23398412Information and Communications for Development 2012: Maximizing Mobile, World Bank, 07/17/12Worldwide smart connected device shipments (M)201020112012F2013F2014F2015F2016F

It goes without saying that mobile is growing rapidly.

And, the explosion in smartphone adoption demonstrated that the smartphone is the most transformative technology since the internetAs you can see from this chart, smartphone shipment relative to PC and Tablet is far greater and expected to increase at a faster pace.

Mobile is allowing more and more people to connect. Globally, 75% of the worlds population now has a mobile phone.

In the next 2 years, there will be more mobile subscriptions than people.

In the US, almost 50% of phone subscribers are smartphone users

40020006001 year8 years800

people1BN 4 years1000Facebook is mobilepeople543M

Understandably, as the world goes mobile, so do the people on Facebook.This natural fit between Facebook and mobile phones is reflected in the incredible adoption of our mobile products over the past four years.It took us eight years to reach our current milestone of 955M people actively using Facebook.It took only four years to get to over 543M people to start using our mobile products - roughly where we were just a couple of years ago on the desktop web.

People are connecting to Facebook on their phone, and thats why businesses should use Facebook mobile to connect with customers.

Additional global stats:And, Facebook is mobile across the globe: In the US, Facebook accounts for nearly 30% of all time spent on the top 10 mobile propertiesIn Nigeria and South Africa, 90% of users access Facebook through their phones.And, in India, of all the people who join Facebook every day in India, over 30% are registering through their mobile phone.

Reach people in more places with Facebook mobile 543Mmobile monthly active usersSource: Facebook 10Q, June 2012.

67%YOY mobile monthly active user growthFacebook mobile provides a tremendous opportunity for advertisers given the scale of of our platform and consumer shift to mobile. 543M people are active on Facebook mobile each month and this number is growing: 67% year over year as of June 2012. 7more often than any other mobile platform8:044:511:171:06FacebookMicrosoftTMYahooTMGoogleTM

Hours spent per person per month in US Mobile30%of all time spent on the top 10 mobile properties in the USSource: comScore, June 2012. You can reach people on Facebook mobile, not just because of scale, but also because its where people spend a significant portion of their time.

In the US, people spend more mobile time per month on Facebook than other leading sites: Microsoft, Yahoo, Google.

Facebook accounts for 30% of all time spent on the top 10 mobile properties in the US.

8Find the right customers with more sophisticated ad targeting than other mobile platformsPersonal

City/State/ZipBirthdayEducationWorkplaceRelationship status

Social

Likes & interestsFriend connectionsActivity (e.g., check-ins)IntentDemographic

AgeGenderZipDeviceOS

Standarde.g., AdMobIn addition to reaching people because of scale on Facebook mobile, you can actually make sure you are reaching the right people your customers - because the same targeting available on Facebook desktop is also available on Facebook mobile.

While other mobile platforms such as AdMob provide targeting at solely the demographic level, Facebook enables you to deliver the right content to the right person through more sophisticated targeting via personal and social data.

The fact that people share much more about who they really are on Facebook lets advertisers target people based on personal characteristics, such as their birthday, education, workplace, or relationship status.

Though, Facebooks ultimate differentiator is social: given people on Facebook are extremely engaged socially, advertisers can target people based on the social behavior they exhibit, such as likes & interests, friend connections, activity, and intent.

These targeting capabilities truly differentiate Facebook when compared to other mobile platforms they allow you as an advertiser to target people on mobile in a way that was never possible before.

NOTE: Device targeting on Facebook is based on the devices from which a user has previously signed onto Facebook. Therefore, it is not yet possible for an advertiser to target a specific device while it is being used.9Reach the right people more efficiently with more accurate ad targetingNarrow campaign accuracyOnline averageFacebook90%35%60%cost savingsBroad campaign accuracyOnline averageFacebook95%72%25%cost savingsSource: Nielsen OCR, October 2011. You may be asking yourself, Ok, what does this targeting give me?

Ultimately, sophisticated targeting puts more $ in your pocket and greater efficiency for your dollars.

The same targeting that advertisers benefit from on desktop is also available on mobile. On desktop, across both broad and narrow campaigns, we see accuracy on Facebook that far surpasses the online average.

In broad campaigns, Facebook has demonstrated 95% accuracy vs. 72% accuracy. Poor accuracy leads to wasted dollars. Therefore, with better accuracy, you can reach people more efficiently, leading to cost savings of 25%.

These stats become even more pronounced in the case of narrow campaigns. Given accuracy of 90% with Facebook vs. an average of 35%, you can save 60%.

Note:Broad campaign example: adults 18-54Narrow campaign example: women 18-34Cost savings calculated by assuming a target # of impressions and the same cost per impression on both Facebook and online averagegiven the lack of targeting accuracy in the online average, we see there are a lot of 'wasted' dollars on impressions that are off-target, leading to cost savings when you use Facebook, with great targeting accuracy,to reach your # of on-target impressions

10Engage people at the center of their Facebook experienceNow that weve talked about connecting with your customers on mobile, the next step is to engage them. By maintaining a consistent presence with customers on mobile, brands can interact with and build meaningful 1:1 relationships with their customers using the most dynamic ads and mobile real estate.11News feed is the most engaging part of FacebookNews feed is Facebooks mobile experience65%of likes on mobile happen in news feed 45% of comments on mobile happen in news feedMobile drives higher engagement than desktop based on rate of likes and comments per story in news feedNote: Data reflects both Page posts and user stories.Source: Facebook internal data, worldwide, August 2012.

65Bmobile news feed story impressionsdaily

People are extremely engaged when they access Facebook through mobile. And, reaching people where they are extremely engaged gives businesses the opportunity to not only reach customers, but to break through to interact and build relationships with their customers.

The news feed on mobile is an especially engaging place. 65B story impressions occur in the mobile news feed each day globally. And, of all of the likes that occur across the site on mobile, 65% happen in the mobile news feed. And, of all of the comments, 45% happen in the mobile news feed

And, by comparing engagement rates on mobile vs. desktop, we know that people are the MOST engaged when on mobile.

Note: This data reflects a 7d moving average as of 8/4.12Be at the center of this mobile experienceWith more real estate than other mobile publishers

Can be full screen on mobile

Facebook enables businesses to be in the center of this engagement via placements in the mobile news feed the personalized newspaper where people go to consume content and stay up to date about the people and things they care about.

The news feed is the main event on mobile and given businesses can appear in the news feed, they can essentially takeover the entire homepage, resulting in the ultimate engagement with consumers and an unprecedented mobile ad placement.

As you can see by the images on the slide, the size of the mobile ad on Facebook is significantly larger than it is on other mobile ad platforms, letting your brand truly stand out and engage customers.

13Use Page posts in mobile news feed to drive the most engagementNote: Engagement analysis is based off of average CTR for aggregate Page posts over a 7-day period., comparing news feed (delivery to fans and friends of fans) to right-hand side. Source: Facebook internal data, July 2012. Worldwide normalized data (based on news feed impressions and right-hand side impressions).

>8xengagement for Page posts in news feed vs. desktop right-hand sideGiven how engaged people are in news feed and the quality of stories there, businesses can generate significant value by using paid media in news feed.

Page posts in news feed can help you drive the most engagement. We have seen that Page Posts in news feed on mobile perform better than those in the right-hand side of the desktop site.In fact, Page posts in news feed on mobile have >8x more engagement than those in the right-hand side. (Note: >8x is true for both mobile and desktop, but you can emphasize mobile in this context)

Interacting consistently with your fans and customers with great content in Facebooks news feed will allow you to build better relationships and loyalty, and ultimately grow your business.

If asked about desktop right-hand side:If you care about branding: When running great news feed campaigns, right-hand side ads fill the role of increasing frequency and impressions to ensure your message makes the strongest possible impact. If you care about DR/ clicks/ actions: The right-hand side can certainly still be essential for you to achieve your ultimate objectives. We will make sure we show your ad in the placement where users are most likely to take this action and maximize the number of clicks/ actions you can get for your budget.If you care about acquiring fans: We recommending having a Page Like ad running on the right-hand side to attract likes for your Page. Then, use Sponsored Stories in feed to make sure new fans friends see these stories and become a fan as well.

If asked why there was a change from >10x to >8x engagement (10x appeared in the Power of News Feed and the Power of FB Advertising decks), we are being conservative with our reporting as the [news feed and Page posts] products develop.

Note: This study compared the average CTR of aggregate Page posts in newsfeed on both desktop and mobile to the average CTR of aggregate Page posts on the right-hand side of the site. (covered 7-day period in July 2012).

14Best practices for news feed advertising on mobileVolume of recent stories: Complement your news feed campaign with ads on right-hand side to make sure people interact with your business and create recent stories you can promote in feedQuality: Use content that is memorable, engaging, and aligned with your brandMobile tip: Links should point to mobile optimized websites

Targeting: Target fans and friends of fans for better engagement; target them separately for more customized messaging & better performance assessment

Bid and budget: Bid as high as you can per click or impression in feedCampaign setup: Do not promote same story to same audience in multiple ads or campaigns

Visibility: Post on Page to get distribution

There are 6 key things to keep in mind to ensure great advertising in news feed.

Quality: The more engaging a story is, the higher its news feed rank will be and the higher delivery in news feed you can expect to receive.Ensure Page post content is memorable, engaging, and aligned with your brand and that video or photo thumbnails are eye-catching and clearOn mobile: If you have links in your post, make sure they point to mobile optimized websites

Visibility: Your post needs to appear on your Page to get distribution. Posts that dont get organic distribution, such as dark posts, are not eligible to appear in news feed and will appear only on the right-hand side if you promote them.

Targeting: Target fans and friends of fans so all of your audience is eligible to see your story in their news feed. To accurately evaluate performance, use one ad to target fans and another one to target friends of fans (do not put different audiences in the same ad or else it will be difficult to assess performance)

Bid and budget: Your bid and budget determine your feed distribution and placement so bid as high as you can per click or impression in feed. (You are only charged value you needed to win auction)

Campaign setup: Do not promote the same story to the same audience in multiple ads or campaigns. They will compete with each other and you will see less delivery in each.

Volume of recent stories: Complement your news feed campaign with ads on the right-hand side to make sure people interact with your business, creating recent stories you can promote in feed.NOTE: There is no recency constraint anymore on Page posts - any Page post published after June 20th is now eligible to get feed distribution. Sponsored Stories, however, only get distribution in feed if the story was created in the last 7 days.

15Facebook platform for mobile can enable better connections, engagement, and influence - easilyWHY: Integrate to optimize your presence on FacebookAccess social distribution on Facebook stories about your app appear throughout users Facebook experienceBuild and customize user experience with social dataProvide seamless experience to users travels smoothly from desktop to mobileHOW: Integrating is easyOur technology is device and app type agnostic connect with people regardless of their device and your app type (mobile web or native)Simple integrations can go long waySingle sign-on enables easier log-inOpen Graph tags help distribute app stories

Facebook Platform for Mobile brings the elements of social media, the web, and apps into one place to enable you to connect with, engage, and influence your customers better.

Facebook lets people make their app experience social and we think businesses should take advantage of this to drive more meaningful relationships with their customers.By integrating with Facebook, brands will have more touch points with their consumers and will be able to generate even more stories to promote in sponsored stories to other consumers. Further, by accessing Facebook user data through your app, you can provide more customized experiences for your customers Lastly, people can have the same seamless experience on any device given the desktop experience translates directly to mobile.

And, Facebook makes this all very easy for businesses-Facebook is device and app agnostic, meaning you can connect with people on any type of device. And, it doesnt matter what type of app you have whether mobile web or native, you can integrate with Facebook.-And, its important to recognize that simple integrations can go a long way in reaping the benefits of integration. For example, using Facebook log-in (or single sign-on), users can more easily log-in to your app, which can help with conversions. And, open view tags help enable the social distribution we just talk about by allowing you to distribute stories about your app to fans and friends of fans.

If you believe that building an app and having mobile presence is important, then integration with Facebook is essential to drive business growth for you.

ResourcesFacebook Platform for Mobile pitch deck: https://c.na7.visual.force.com/apex/MKTG_Content?d=068A0000000NqxWIAS Facebook Platform for Mobile tutorial: https://www.facebook.com/photo.php?v=10150707310873202

16All mobile apps can now be socialFacebook sends 160M+ visitors per month to integrated mobile apps

Notifications and messagesNews feed and timelineBookmark and APP centerNative or web appGet distribution through Facebook

Lets dive into the idea of social distribution a bit more.

When you integrate with Facebook, your app & associated stories can be distributed throughout the Facebook ecosystem. For example, actions can show up on users and friends notifications, stories can appear in users timeline and friends newsfeeds, and your app can be searched through our bookmarks.

Integrate by building websites and apps for mobileGet startedBuild for seamless user experience across Mobile and DesktopUse HTML5 or SSO for native appsTest on mobile firstOptimize your app settings for mobileDesign for mobileRegister your mobile app through the developer siteDefine objects and actions that can be shared on Facebook via Open Graph

App on timeline

App on mobileAs I said before, integrating with Facebook is very simple.IF YOU ARE BUILDING AN APP, YOU SHOULD BUILD FOR MOBILE

HOW TO BUILD FOR MOBILEBuild for seamless user experience across Mobile and Desktop your consumers are using both, so let them connect from any device, and have a continued relevant experienceUse HTML5 or SSO for native apps Test on mobile first it is easy to test first on mobile, see how a product/app/website works before launching fullyOptimize your app settings for mobile everyone should optimize the settings for mobile, which Facebook makes it easy to doDesign for mobile and most importantly, design for mobile. Mobile is different than the desktop, and you need to design for mobile to make the mobile experience great.Register your mobile url through our site, and then you will be ready to take advantage of Facebook Platform for mobile.Lastly, define objectives and actions that can be shared on Facebook via open graph (ensure users are also authenticating with the Login Button plugin see next set of steps)

STEPS TO BUILD AN OPEN GRAPH APPCreate a Facebook appAuthenticate users with the Login Button pluginDefine Objects, Actions and Aggregations through the App DashboardPublish Actions for your usersAdd Social Plugins to your appSubmit Your Actions for approval

OTHER RESOURCESInformation on developing with Facebook Platform for mobile: https://developers.dev.facebook.com/docs/guides/mobile/ Tutorial on Open Graph:https://developers.facebook.com/docs/opengraph/tutorial/

Remember businesses should only build Apps if it is right for them; they should ask themselves:Do you have a long-term, always on product that is core to your business strategy? Can you enable online or offline actions that users would be proud to user repeatedly and share,Do you have an in-house team dedicated to building, maintaining, optimizing, and promoting the app, like a product? Unlike the other products, it is important that you have an in-house team dedicated to timeline apps. Not just to build, but to continually updated and enhance.

We're really excited about the innovation and opportunity we see on mobile today. Ultimately, Facebook is a mobile product. Were excited to contribute to and help drive the innovation that we know this industry will produce in the next few years.Our hope is that the initiatives I talked about today - our Open Graph platform, the Core Mobile Web Platform group at the W3c, and our partnerships with carriers to improve mobile payments - will enable developers all over the world to build mobile experiences that improve the lives of billions of people.We look forward to working with all of you to make this happen.Thank you.

19