IT'S NFL DRAFT DAY.
WE'LL TAKE A LOOK AT TECHNOLOGY
THAT'S HELPING PREVENT PLAYER
INJURIES.
TECH GIANTS AMAZON, MICROSOFT
AND INTEL ALL DUE OUT AFTER THE
BELL TONIGHT.
FACEBOOK AND ALPHABET BEAT
EXPECTATIONS THIS WEEK.
THEY POSTED A SPIKE IN DIGITAL
AD DOLLARS, ACCOUNTING FOR 91%
OF FACEBOOK'S REVENUE AND 97% OF
GOOGLE PARENT COMPANY REVENUE.
THAT COULD GIVE US SOME
INFORMATION ABOUT AMAZON,
BECAUSE AMAZON WILL ALSO REPORT
AD REVENUE WITH ITS PRIME
BUSINESS TONIGHT.
JOINING US RIGHT NOW IS BRIAN
O'KELLY.
THANK YOU FOR JOINING US.
>> THANK YOU FOR HAVING ME.
>> MARIA: YOU HAVE A GREAT READ
ON ADVERTISING REVENUE.
EXPLAIN WHAT YOU'RE SEEING IN AD
REVENUE RIGHT NOW.
>> APP NEXUS IS A TECHNOLOGY
THAT HELPS COMPANIES THAT AREN'T
FACEBOOK GET AS MUCH MONEY FOR
THEIR CONTENT AS POSSIBLE.
IF YOU'RE WATCHING FOX BUSINESS
RIGHT NOW, YOU'RE SEEING ADS.
WHO DECIDES WHAT ADS YOU SEE?
WELL, FOR MANY OF THE COMPANIES
NEXUS.
WE'RE TRYING TO USE MACHINE
LEARNING AND NONPERSONAL
INFORMATION TO FIGURE OUT WHICH
ADS ARE THE MOST EFFECTIVE TO
SERVE TO ALL THE CONSUMERS
WATCHING TV OR READING ARTICLES
ON THE WEB.
THAT'S WHAT WE DO.
NOW, THE BIG CHALLENGE IN
ADVERTISING IS IF YOU'RE
FACEBOOK OR GOOGLE YOU HAVE AN
IMMENSE AMOUNT OF DATA ABOUT
CONSUMERS THAT THEY'VE IN MANY
CASES FREELY GIVEN AND YOU CAN
USE THAT TO MICRO TARGET ADS.
THAT ALSO MEANS THE CONSUMER IS
THE PRODUCT.
YOU'RE SELLING THE CONSUMER
THEIR OWN DATA AND MONDAY
ADVERTISING THAT AS YOU SEE --
MONETISING THAT INCREDIBLY WELL.
>> MARIA: THAT'S WHAT GOT THEM
IN TROUBLE.
>> YOU CAN AVOID THAT.
YOU'RE NOT HOLDING ANYONE'S
PERSONAL DATA.
YOU DON'T HAVE THE FACEBOOK
PROBLEM OF HOW DO I PROTECT YOUR
PRIVACY, IS THAT RIGHT?
>> THAT'S CORRECT.
WE HAVE THE OPPOSITE PROBLEM.
WE DON'T KNOW WHO YOU ARE.
WE HAVE TO USE THESE MACRO
TECHNIQUES TO FIGURE OUT WHAT
ADS YOU'LL PROBABLY LIKE IF
YOU'RE WATCHING THIS SHOW OR IF
YOU'RE READING THAT ARTICLE.
WE DON'T KNOW WHO YOU ARE.
>> SO WE'VE SEEN IN SOME RECENT
YEARS FACEBOOK AND ALPHABET,
GOOGLE'S PARENT, CAPTURING
ALMOST ALL THE GROWTH OR ALL THE
GROWTH IN ONLINE ADVERTISING, I
BELIEVE IN MOBILE ADVERTISING.
IS THAT TREND CHANGING?
>> WELL, I THINK THIS LAST
QUARTER WE SAW THAT DECLINE A
LITTLE BIT.
SO GOOGLE'S SHARE WENT DOWN A
LITTLE.
SO WE'RE STARTING TO SEE THAT
CHANGE.
I THINK THE BIGGEST CHARGE
CHALLENGE IS -- CHALLENGE IS IF
CONSUMERS CONTINUE TO WANT TO GO
TO FACEBOOK OR SEE VIDEOS ON
YouTUBE, THAT'S WHERE THE
ADVERTISERS WILL GO.
IF YOU'RE ANY OTHER MEDIA
COMPANY OR CONTENT PRODUCER HOW
DO YOU GET CONSUMERS TO SPEND
LESS TIME ON FACEBOOK OR
YouTUBE.
>> THAT'S PART OF THE CRITICISM
OF FACEBOOK, THEY'RE A MONOPOLY
EFFECTIVELY IN A PARTICULAR
SPACE.
DO YOU ANTICIPATE COMPETITORS
THAT WOULD CREATE THAT
OPPORTUNITY FOR OTHER
ADVERTISERS?
>> I'D LOVE TO SEE COMPETITORS.
WHEN YOU HAVE A CONSUMER
BACKLASH ABOUT FACEBOOK, PEOPLE
ARE UPSET WITH FACEBOOK AND YET
WHERE DO YOU GO?
TWEET?
>> DAGEN: THAT GOES TO WHAT
SHERYL SANDBERG SAID ON THE CALL
YESTERDAY, THAT THEY HAVEN'T
SEEN A MEANINGFUL TREND OF
ADVERTISERS LEAVING THE
PLATFORM.
IT WAS A TILL
IT WAS A LILL
IT WAS A LITL
IT WAS A LITTLE STRANGE.
THERE WAS SO MUCH ADVERTISER
OUTRAGE ON YouTUBE WHEN
ADVERTISERS FOUND OUT THEIR
COMMERCIALS ARE APPEARING IN
VIDEOS OF QUESTIONABLE CONTENT.
FOR THIS, IT'S LIKE THE
ADVERTISERS FEEL LIKE AS LONG AS
THIS BENEFITS US, WE DON'T CARE.
>> MARIA: AS A P.R. MOVE THEY
HAVE THE LATEST APOLOGY
PROMISING TO KEEP DATA SAFE.
WATCH THIS.
>> THEN SOMETHING HAPPENED.
WE HAD TO DEAL WITH SPAM, CLICK
BAIT, FAKE NEWS AND DATA MISUSE.
THAT'S GOING TO CHANGE.
FROM NOW ON, FACEBOOK WILL DO
MORE TO KEEP YOU SAFE AND
PROTECT YOUR PRIVACY SO WE CAN
ALL GET BACK TO WHAT MADE
FACEBOOK GREAT IN THE FIRST
PLACE.
FRIENDS.
>> MARIA: IS THAT ENOUGH?
THE STOCK IS UP TODAY AFTER THE
STRONG QUARTERLY RESULTS BECAUSE
PEOPLE ARE SAYING WELL, MAYBE
THIS DIDN'T MATTER TO INVESTORS
AND ADVERTISERS.
>> I THINK IT MATTERS A TON.
WHEN I TALK TO THE LARGEST
ADVERTISERS IN THE WORLD, THEY
SAY CONSISTENTLY I WANT AN
ALTERNATIVE TO YouTUBE AND
FACEBOOK.
I DON'T WANT TO SPEND MY MONEY
THERE BUT THAT'S WHERE PEOPLE
ARE SPENDING ALL THEIR TIME.
I THINK THE BIGGEST CHALLENGE IS
REALLY THAT YOU CAN DELETE
FACEBOOK AND I WISH YOU WOULD,
BECAUSE --
>> MARIA: I DON'T KNOW IF YOU
CAN DELETE IT.
I HEARD PEOPLE TRIED TO DELETE
THE APP AND THEY COULDN'T.
IT'S IMPOSSIBLE TO GET RID OF
FACEBOOK.
>> THAT'S A MONOPOLY.
WHAT ARE WE GOING TO DO?
>> THIS IS OBVIOUSLY A PRODUCT
THAT A LOT OF CONSUMERS HAVE
FREELY CHOSEN TO THIS POINT.
BUT THIS IS INTERESTING THAT
YOU'RE HEARING FROM ADVERTISERS
THAT THEY WOULD LIKE NEW OPTIONS
BECAUSE YOU LOOK AT THESE
EARNINGS REPORTS, 50% GROWTH IN
AD REVENUE AT FACEBOOK, THEY'RE
STILL WRITING INCREASINGLY
WRITING CHECKS, EVEN IF THEY
SEEM TO WANT MORE OPTIONS.
>> ONE THING TO THINK ABOUT IS
THAT AS TELEVISION BECOMES MORE
AND MORE DIGITAL, SO PEOPLE CUT
THE CORD AND WE CAN ACTUALLY DO
MORE INTELLIGENT AD INSERTION
INTO TV, BROADCAST, WE SHOW
EVERYONE THE SAME AD BUT
INCREASINGLY WE CAN CHOOSE
DIFFERENT ADS FOR DIFFERENT
PEOPLE.
THAT MEANS WE CAN GET MUCH
BETTER RESULTS FOR TELEVISION
ADVERTISING.
I THINK THAT GIVES PEOPLE A REAL
ALTERNATIVE WHERE ON DIGITAL
ADVERTISING RIGHT NOW YouTUBE
HAS A HUGE MONOPOLY OF DIGITAL.
DON'T FORGET, THAT'S A SMALL
SUBSET OF ALL OF THE ADVERTISING
THAT THESE BIG MARKETERS ARE
SPENDING.
IT LOOKS LIKE A LOT OF DIGITAL
BUT AS WE SEE TV COME TOWARDS
THIS, WE'RE GOING TO SEE A VERY,
VERY DIFFERENT LANDSCAPE.
>> DAGEN: YOU NEED TO FIGURE OUT
A BETTER WAY TO CONNECT THE
VIEWER AND THE CUSTOMER WITH THE
ACTUAL BUYING OPPORTUNITY WHICH
IS WHAT INSTAGRAM, WHICH IS
OWNED BY FACEBOOK, DOES SO
BRILLIANTLY.
THEY SHOW YOU SOMETHING AND IT'S
LIKE CLICK ON THIS AD AND YOU
CAN PURCHASE IT IMMEDIATELY,
LITERALLY WITH YOUR FINGER, YOUR
THUMB PRINT ON YOUR iPHONE.
THAT'S THE CHALLENGE FOR
TRADITIONAL ADVERTISING, EVEN IF
THE VIDEO IS DELIVERED ON THIS
DEVICE.
>> MARIA: THEN THEY CAN MEASURE
A ALL OF THAT.
THEY MEASURE IT ALL.
THAT'S WHAT THE ADVERTISERS
WANT.
>> EXACTLY.
>> MARIA: REALLY IMPORTANT