In a world of constant surveillance, Facebook is going to need to create some cash.
That’s what Mark Zuckerberg and the company’s founders say.
Zuckerberg said Tuesday that Facebook’s current strategy is to monetize advertising on the platform by making people click on ads they find on Facebook and then buying that ad for a higher rate of return than they would otherwise pay for a piece of advertising.
That strategy, he said, is working and will work on the future.
That’s not going to happen overnight.
The future of Facebook advertising, Zuckerberg said, depends on how well the company can sell people on the ad platform.
The company has been trying to make its advertising work on mobile and desktop platforms for years.
It’s been working to turn its mobile ads into revenue-generating devices.
But as Zuckerberg outlined at the company board meeting Tuesday, Facebook’s ad business will become more of a challenge if it doesn’t get its products right for mobile.
“The current ad model is very well-known to people who have used Facebook,” Zuckerberg said.
“The people who don’t use Facebook use mobile.”
Zuckerburg’s admission comes amid increasing skepticism about Facebook’s ability to sell ads on mobile platforms and the social network’s growing reliance on ad revenue from its ad revenue partners.
Facebook said in a blog post last month that its ad business is still growing, but it’s not growing quickly enough to cover the company “unprofitable” growth.
Zuck said Tuesday the company is “very excited” about the potential of ad revenue in mobile, adding that “this is not something we have to do on autopilot.”
Facebook also said it is “looking at ways” to make ads on other platforms more relevant, including with new ads on apps, gaming, news, and video.
Zuckerberg said it was a “huge challenge” for Facebook to sell advertising on other ad platforms and that the company would continue to invest in the advertising industry.
It remains to be seen whether Facebook’s advertising efforts will pay off.
Zuckerberg’s presentation, which took place a day before Facebook’s earnings report, focused on Facebook’s efforts to help advertisers find ways to monetise the content they share.
But there was no mention of how the company will make up for lost revenue from the ads it buys.
And the company has faced criticism from many consumer advocates who say Facebook is failing to sell its content to people and should be focusing more on the content it sells.
“You are seeing a very important question: what is Facebook doing for us?” consumer advocacy group Free Press said in an emailed statement.
“Facebook is not going after advertisers.
They are not trying to turn people into money-making machines.”