A must-know look at Facebook’s 3-year strategy

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Facebook’s 3-year strategy revolves around public content, video and Atlas

During the conference call to announce 3Q14 earnings, Facebook, Inc.’s (FB) chief executive officer, Mark Zuckerberg, laid down Facebook’s strategy for its shareholders. The company divided its business strategy into 3-year, 5-year, and 10-year goals. The 3-year strategy goals relate to the projects we’ll discuss here.

 

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1. Public content 

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This is a tool to connect people with important public moments and personalities on Facebook. It’s an attempt by Facebook to draw on features of Twitter Inc (TWTR)—where people are comfortable sharing their views with everyone. With this tool, media companies can also share content and videos for promotional purposes on Facebook. Market Realist covered a similar initiative by Twitter in its article, Will Amplify help Twitter boost its video ad initiative?

2. Video

Facebook is getting serious in the video ad space. The company reportedly reached out to Google Inc’s (GOOG)(GOOGL) YouTube’s biggest content producers and invited them to test distribute its videos on its own platform. Facebook’s management said it got 1 billion video views in the last quarter—a new milestone.

Facebook also closed out the acquisition of LiveRail in the last quarter. LiveRail is one of the leading online video advertising platform that helps customers monetize their video inventory efficiently. For more on this, read Why acquiring LiveRail will help Facebook’s video ads business.

As the chart above shows, BrightRoll and Specific Media are the top two players in the online video ad market. Interestingly, Techcrunch recently reported that Yahoo! Inc. (YHOO) is in talks to buy BrightRoll for $700 million. AOL, Inc. (AOL) and Google rank fourth and fifth. Surprisingly, AOL ranks higher than Google in this market because AOL acquired video ad exchange Adap.TV last year.

3. Atlas

Earlier in this series, we reviewed Facebook’s newly launched advertising program, Atlas. Facebook plans to continue investing in this area to improve the relevancy of ads and online campaign measurement.

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