Transcript
Introduction
Zack
Today, we will be diving into Facebook, a business that requires little introduction. Facebook was launched in 2004 from Mark Zuckerberg's Harvard dorm room. Zuckerberg has since grown Facebook into the largest social network in the world and continues to operate the business today. To break down Facebook, I'm first joined by Robert Cantwell, founder and CIO of Upholdings. Rob's unique background makes him an ideal person to speak on Facebook. Rob shared a dorm with Mark Zuckerberg, went on to work at Elevation Partners, a large private investor in Facebook, and eventually became CFO of Everlane, where expansion was closely tied to the growth of Instagram and its advertising tools. We touch on how Facebook successfully navigated the transition from desktop to mobile, what drives the value of the network, and where Facebook may drive value in the future. I am then joined by Jesse Pujji, a familiar voice as a host of Business Breakdowns. Jesse's time as co-founder and CEO at Ampush make him ideal to break down the advertising business of Facebook. During our conversation, Jesse outlines the basic dynamics of the Facebook ad ecosystem, the economic proposition to an advertiser, and how to assess risks to Facebook's control of the digital ad market. Facebook is such an interesting business, and we could likely speak for hours on the potential opportunities for growth. We decided to focus on the core advertising business today, given it represents 98% of the revenue. In the future, we want to dedicate individual breakdowns to WhatsApp, Oculus, and potentially other Facebook initiatives that are worthy of their own deep dives alone. I hope you enjoy this conversation on Facebook.