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Jon on CNBC Talking Facebook

2013-03-08
I want to bring in as well jon rettinger president of technobuffalo John great of you to join us today so they've got a couple of problems here at least according to reports advertiser fatigue and user fatigue will this new redesign help so this redesign is aimed squarely at addressing both of those issues now certainly putting pictures front and center making videos easier to find is great for the end user and it makes the end users are able to find information easier but also advertisers find information a lot easier so people should get ready for larger louder ads this is the digital version of putting giant neon lights glowing and arrows pointing right at your new news feed and in terms of the ads that need to be on the facebook and am I writing thinking here John they kind of need to be very participatory you know the average person who goes on facebook is used to interacting wants to be out of shape maybe the ad campaign themselves they need to have that interaction absolutely facebook is now responsible to their shareholders they're going to be judged squarely on user engagement and the user engagement has been going down and down despite you know over a billion users on the social network so the idea is by putting these loud ads are right in front of you the engagement is going to be much higher email to finding advertisements that are geared directly toward to the user is there any possibility this is going to just turn this a lot I mean John I mean you know just just more ads more stuff is it just going to turn people off and and exacerbate the problem that's already going on you know so there's absolutely that problem facebook though despite sort of losing that user engagement people are still going to Facebook 61.8 percent daily active users they said in their last quarterly earnings so no one's going away from facebook the idea is out to make the ads seem more organic to the new news feed so you don't mind seeing them and the bringing in information from all kinds of sources Facebook is even bringing advertisements from local card purchases that I've been done completely offline if you got a rewards card the grocery store you'll start to see those ads show up in your facebook timeline Julia and Mandy I just want to say the the reason why they are putting such an emphasis on photos and why we'll see that also impact away ABS is because Facebook has found that people engage much more with photos in their newsfeed than they do with text updates so people want to see photos and that's why that's really influencing all of these changes and at the end of the day what people engage with whether it's from their friends or with advertisers if it is photo-based and that is going to really direct a lot of what we see on the site moving for one can I ask a question is kind of off the topic of Facebook but in the same sort of sector here John whatever happened to Google+ you know so funny you should mention that the new redesign actually looks like Google+ Google Plus has been growing is becoming a platform for sharing video a lot you can do live video interactions and live streams via a google plus they certainly haven't had the engagement that Google was hoping for years ago but it as far as social networks in Google go if there be a success to date so you can look at that anyway what do you think Google+ is going to be here to stay and get bigger and better yeah I think Google's got the resources to make sure Google+ is here what do you tell a while well Mandy I think it's really interesting that Zuckerberg stressed today that people on their newsfeed should be able to share with their friends a small group and also with the public a larger group and that's really what Google+ has not mastered this ability to share with different circles of people and so I think that what Zuckerberg is trying to do is make sure that Facebook isn't just a platform for friends to share with friends but for it to be a platform we're sharing with anyone exists which is what Google Plus does and what Twitter does with sharing them homeland and that's very interesting facebook is almost competing with themselves with their Instagram purchase by really putting emphasis on photos they're trying to almost undercut themselves with Instagram fascinating stuff is good space to watch thanks Julia thanks John
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