three in sanpier francisco, welcome to "bloomberg west," where we cover the global technology and media companies that are reshaping our world. facebook and google are rolling out new tools for advertisers to track mobile users. the tech giant has announced these new services at the conference in new york. the question, are these new services going to help companies expand their share of the mobile advertising market and controlled the world of advertising as we know it? dreamworks animation may be on the block. weighing a sale to japan-based

softbank. they would become the second japanese company to own a major hollywood studio. says he will serve board and the panels. facebook launching a new ad platform today, one that will own desktopnd beyon its and mobile sites. atlas will allow marketers to use facebook data on its 1.3 billion users to target them to buy ads on non-facebook websites and apps. google has also announced a new mobile ad tool today. plans to automatically resize advertising spots to fit mobile

devices. anchor calling it an marketing spot that remains at the bottom of a mobile device screen even as viewers scroll down on a page. this is all being announced in the conference weekend in new york. let me start with you. it is interesting to me that this conference has become the event where these really big marketers are showing off their wares. are these announcements really new or just a way to get attention? >> facebook has been moving in mis-direction for a long time. year they allowed mobile up risers -- advertisers to use their applications. they allowed shopping tracking across the web, and they bought

live rail. they have been moving in this direction but this is actually a new announcement for them. this ad server did not exist before. it is going to make a difference in the industry because they are tracking people by their facebook identity, not by cookies on browsers as they have in the past. >> you work with facebook a lot. this seems like a huge deal to be able to take their ad platform be on facebook. it is really exciting. they are leading the groundwork for the next generation about technology. it is a like how stock traders would use it. helps them to measure their campaigns, which is incredibly strategic. abouts is really monitoring, not about where the ads are going, that was already happening on some level. >> it is both.

is figuring out where to show the ads, and the measuring the impact. facebook is really taking that to the next level. this is the next generation of technology and is exciting to see that happening. >> how big is facebook outside of facebook? it covers most of the world's internet population at this point it is really covering the whole internet, they are everywhere. there is nowhere that you can ago on the internet that is in touch by facebook in some way. button, thehe like ad. >> is there a notion that is interesting that they split off instagram and messenger a separate apps, and they looking at the web of a universe of different sites, and different apps that these book ads will be run. >> this is the beginning of a big move. the future of facebook is not just in facebook itself, and it is in the wider web. oculus, andacquire

other apps. they are also splitting up their advertising into the wider web. we will see this trend much more in the future. >> and perhaps, even the launch of google. are they after this? >> they are after google. think about what google did on google for many years. they branched out to two become the dominant player. they spent billions of dollars and thousands of engineers on ellie mae's ad technology products. the book is saying we are going to compete. that anere a way advertiser has are at brought out to the world where facebook is completely different in a different way? >> they are different in the

data that they store about their users and their ability to talk to those users as individuals. toertising to people, not machines, not to cookies, but to actual individuals. >> and demographics. i think of advertising in terms of how old someone is, or where they live, or how wealthy they are. is google that smart, or is it different? >> you do not look 1000 years old. >> thank you. >> google and facebook are incredibly smart about this, and they are both moving the all ford very aggressively. it is going to be quite the horse race. it will be interesting to watch over the coming years. >> thank you. company is not the only competing for the ad business. amazon.com is also going for it. ♪

>> this is "bloomberg west." amazon is heating up in the

competition with google for ad dollars. the e-commerce giant. google nearly $158 million inserts ads. could their investment in their own ad platform reduce their reliance on google ads? the show.ve you on i'm so fascinated by offering amazon, not least of which is the ad business. is it principally about driving sales through the amazon brandrm, or is there a thing that happens when ad show up on amazon and consumers are more aware of the brand? combination of both. we work with advertisers all over the world both to engage with amazon customers, help them with their shopping experience, make it more relevant, and also work with marketers on branded campaigns. help them connect with customers

and drive engagement both on amazon and off amazon. some numbers say that the businesses that you run is doing $750 million to $1 billion in revenue this year. is that ballpark correct? >> i cannot comment on the size of our business, but i can say that we are growing. especially as we head into the holiday season which we are really looking forward to, we will continue to grow and connect with investors -- customers wherever they are. >> i saw you present last year my job was onnce, the floor with some of the things that you guys have learned about what works in advertising on the web. you have secrets that no one else seems to get. share with me one of those about what makes an ad more effective on the web. >> there are a few things. e-commerceout

ads, and we continue to innovate and remind them -- refine them. e-commerce ads, it is when you take a shopping feature functionality, embedded right into the ad. add to cart, by now, customer ratings and reviews, and now we are starting to test dynamic optimization where we can watch the performance of the ad, and change real-time the messaging in the ad or include things like if there is a buy now button we can add customer reviews if we higher are a y in performance. >> that is wild. when you write the ads, and creates the images for the ad, do you do different options available and sub those into c which works? >> i know you love your football

analogy. our focus of our advertising program is to make the customer shopping experience more relevant. one way of doing that is ensuring that the messaging of the ads, the call to action within the ad, whether it is by now, embedding a coupon, embedding video, so that the marketer can tell a branded story of the call to action, we can increase and improve performance as the campaign is running real-time. >> that changes the role of the creator of those ads. i had a job once and american express where i was designing the gold card application. they were literally having me create different sized boxes for the check marks and focus groups were testing those to see which

ones would get the most check marks and the most clicks. are your mad men having to create lots and lots of different options? -- thee whole practice whole practice of creating ads changing to dynamic optimization? create them all internally. we are constantly testing and learning and evolving and innovating on behalf of our customer. we are learning things like what the call to action is, the color thehe ad, the font size, image, all of that really the goal ofh improving the customer's overall shopping experience. >> is that secret sauce, only done by amazon? or are your advertisers like procter & gamble, like random house, privy to that new process of creating this type of economic at -- dynamic ad?

workl of the marketers we with we share standard reporting on the performance of the ads. with marketers who are selling product, it really matters to them the performance of the ad and the roi that they are seeing to hit their marketing goals. >> in the history of advertising on the web, which now extends quite a long time, we have seen the rate at which advertisers come down from off-line advertising to tv advertising, to more on the web. you would think that it would have measured that it would be greater not less. are you seeing a reversal of that trend? >> my comment to that is that we are growing our ad' business, it is healthy, and are marketers are seized with the

developments over the years. on improvingd customer experience. we're seeing healthy growth globally. you givee metric to advertisers efficacy and clicking through? >> yes. on industry standard reporting, things like impressions and clicks through and engagement. everything we do in our advertising program is with an eye on scale and scaling globally and creating parity across every country where we exist. change,u think that the facebook and google announcing new platforms today, where are we in terms of the evolution of technology and advertising?

are we starting to arrive in industry-standard tools? >> i cannot comment on what google or facebook are doing, is givenn comment on the adoption of mobile devices with our customers and the type of e-commerce growth we're seeing on mobile just last holiday season. 50% of ark restaurants shop to be a mobile device. that is going to change the way we are thinking about marketing and marketing cross-platform and connecting with customers. >> vice president of global advertising, thank you so much. soft inc. may have its eye on a new acquisition, dreamworks animation. why the telecom giant is interested. ♪

>> welcome back to "bloomberg west." banc is looking to buy the studio dreamworks. --y have struggled to beyond grow beyond film. why would the telecom giant go after the company behind how to train your dragon?

this is an interesting deal. this is not t-mobile, a very different asset. a drop in the bucket compared to t-mobile and some of the other potential acquisitions that they have been rumored to be looking at recently including spinoffs. softbank is actually looking at several u.s. media companies and one source described them as being on second base for several different u.s. media assets that could be larger than this one. acquisition would give them content they could payor with around the globe. is that integration of content and distribution that all sorts of telecom companies have been looking at recently. comcast was buying nbc.

i know we are having the ceo full-screen on later. , puttinghe play here together content and distribution. here's the content company that probably needs to get a buyer because the standalone business of the film driven company like dreamworks animation is very up and down. overu look at the shares the past year or two years they have struggled, and that is looking atinvestors this company and saying it does not have enough and needs more scale. i was surprised when i looked the financials this morning, that for three years now the majority of the revenue has come from overseas sales, not in the u.s.. surprised it was not a lot less or a lot more. other train your dragon,

animated hits, you would think they would do quite well in multiple markets. >> it does play fairly well in asia, a decent resentment of that 54% is in asia, and that is part of the play force-out rank -- play for softbank. also, softbank is looking at wireless assets around the world. if you start to build some of these content plays you can potentially push them to more regions of the country and maybe the international movement goes up. because theamworks, distribution would be compulsory to the consumers of softbank and consumers on wireless, they would have a bigger market, be seen by more people, and have greater value. >> potentially. i think that is the larger play. what what you're going to see are a lot of u.s. wireless companies and cable complete

check the about verizon, at&t, sprint, they're looking closer and closer at content plays to try to bring together content and distribution which is the exact opposite of what we saw five or seven years ago when these larger companies like cablevision and time warner cable started to break apart and spin away their content plays. wishing the reverse as these companies -- we are seeing the reverse as these companies make this content push. walmart is adding instagram's cofounder to its board. ♪ >> it is 26 minutes past the hour which means that we are on the markets. let's get you caught up on where

we have been trading on this monday. stocks mostly in the red. meanwhile we are seeing a selloff in small cap stock in tech shares. facebook.well as ♪

>> you're watching "bloomberg west." unboxed'sviewer o iphone bend test went viral. meanwhile, apple has defended the durability of their product. what is the truth behind bend gate? can you really bend your new iphone should you be worried

about it? our panel joins me. when you took this phone on with a new challenge to bend it. in terms of time find physical durability at large? >> we found that a lot of phones actually bend. it is really just how much force is applied. -- in our testing we found that it takes around 70 pounds of force to bend the iphone 6 to where you can measure it. we put a measuring device right it, it is a fulcrum

that comes down and imparts force in a very precise way. it took 70 pounds of force for the six and 90 pounds of force for the six plus. >> that is interesting that the six plus is stronger. both of them are bendable. you took some heat on line. people calling you a fraud. people looking at the video. that we show the bench phone, and has -- it has an earlier time frame stamp. can you explain that? >> the reason that i published another video after it was to put that to rest of the truth is that i bend multiple phones. i did not want to just bend one phone and then publish a video that would look conclusive. the results that you're seeing in the first video actually two

separate bends. the first one was slightly overexposed. it was a question of editing the video together in picking a different take. but the results are identical. bent three now, each one bending in the same place. -- our test is in no way implying that his test was fabricated. was that the human hand can import quite a bit of force. d.ese phones do in fact ben we did not put the force directly on the bottom switch, but you see that our phones and in the same -- bend in the same space.

>> after i'm done with these things, i have a phone that is chopped in half. it is the end of a titanium reinforcement, and you are left with a sheet of aluminum at that point. it takes very little pressure at that point to impart that bend. every single image that i received from a user has shown their device bending in that same location, without even bend testing them. if they are wearing tight enough pants, that portion there can sometimes end up right with the hip needs the thought. -- right where the hip meets the thigh. >> this is not all for giggles. the notion that you can bend a phone, who cares. but the notion that a 70 pound but can bend a phone you might want have wanted to keep, there are those.

thehis a concern for functionality of all of the phones that have been tested? is this one more fragile than other phones? >> as a relative measure, the iphone 6 and six laws were not as robust as some of the other phones we tested, and we do not test every phone we bring into our lab. put some data to behind what was really becoming a big issue online for we wanted to actually set a very precise machine and find out what the data was. what we came to was yes these phones are as a relative measure a little weaker than some phones from samsung, like the galaxy note three that sprung back to poundstil we reached 150

of force and then completely shattered. and the iphone 5. if you think what 70 pounds of force means in our test, that is like a small child standing with centerl exactly on the of the phone and balancing it on top of two bricks. i think that is an unreasonable expectation in modern-day use. >> you must have daughters not sons. [laughter] this was when i thought it was a real story. we showed the video, but then apple put out this nondenial denial. apple said iphone 6 and six plus need and or exceed all of our high quality standards through our first six days of sale.

a total of nine customers have contacted apple with a bent iphone 6 plus. no mention whatsoever the iphone 6. 6 sold more,phone so why would they not give that number? that nondenial did out with that answer may be think there was more to it. did you notice a similar bending issue in the iphone 6? >> i've been told that my test is actually a four-point bend test. the extra surface area on the six plus is the reason it is easier to bend on the six itself. the six held up a little bit better. it might have something to do with the area around the volume reinforcementmore

, or potentially the the is not quite as bendable. i originally started this experiment aced on my -- based on them getting in touch with me on his own. pockets barely fit the six plus, whereas the six will go into your pocket a little more nicely and it probably will encounter far less force from your hip. >> you should be wearing a sports good every day -- coat every day. and we should not sit on our

iphones. and we should read the non-denials a little bit closer. thank you both. would you pay $5,000 to record your favorite tv show for three years? the new mega dvr box. ♪

." this is "bloomberg west your favoritecord tv shows for three years because tivo plans to sell a 24 pound mega dvr next year.

but is bigger back in her -- b etter? the ceo of tivo joins us. about the imagined ,se for something like this 4000 hours of recorded video. whole notion the of on-demand viewing, being able to watch what you want to watch when you want to watch it. many people, with typical satellite or cable dvr runs into the issue of the record something and it knocks something else out that they have not watched yet but wanted to say. we solve for that issue completely. we have many uses for this. on tivo we have collections, collections of the best 100 films of all time.

with one clique of a button you can record the best 100 films of all time, and have them there. imagine having friends over to say you can pick any one of them. we decided to take a to the hole next with -- big to the level with tivo mega. it really gives the viewer the ability to have all choice anytime they ever want. you have some new partnerships with so many of the cable providers across the world. , some speculation on market, with the cord cutting play this gets very interesting to people who have their content will want to keep their content, and not have so many netflix and so on because they can just do what you are looking at.

is this a threat to netflix and amazon prime? >> i do not think so. we are looking to serve all television viewers. e tv guy.bl having all of those channels to me is critical to the best experience. we are able to put that all together with that sex and hulu -- with netflix and hulu. the ability to get everything the way the iphone can in the mobile phone device. what we're looking for with the mega is people will have huge storage needs. it is not for everybody, but it gives people who like to record a lot and have tons of choice to always have something waiting for them. for people who do not want cable or satellite, but still want a dvr, you used to be able to have

that with aereo. but they got struck down by the supreme court, so we are the legal way to have it. you can have it put together in a fully integrated way. manyow that there are different ways for people to watch television, many different needs they have in terms of the amount of toys they want to have. -- choice they want to have. [no audio]

>> we now serve 19 of the top 25 operators with some element of television where the youth system the core piece of how better uiate experience with comcast really different experience and relationships. we want to build or have the extended the content and that proprietary video-on-demand library that they have developed a available fully integrated as part of tivo. comcast channels, vod, and everywhere. the streaming services of and inu, and the web video all one. retail comcast

tivo offering does give us growth prospects. we can give in the next generation of security, how you make sure that the programming is secure in the box. that means no cable card in the future. it is unusual situation that you describe, but comcast has given us a path to the next generation opportunity. >> it remains a fascinating company. we appreciate it. go for the bloomberg west to season pass. another show you do not want to miss the -- therotesters have taken to

streets. they are calling for free and open our elections and for the resignation of the city's chief executive. we will look at the economic impact of the protests. could they spread to the mainland, and how are they effecting investor sentiment? we will have analysis, just a few minutes. >> i very much look forward to that. have finally been made legal in china after a 14 year ban. how will microsoft break into a small part of that market? ♪

>> welcome back. the cofounderdded of instagram to its corporate board as the 15th board member. thatill serve on the

she will serve on the technology .nd e-commerce committee this company works, why would they go to the instagram dude to be on their board? >> they are trying to understand the internet. they were behind for a number of years, they made some pretty big moves, hired some people in silicon valley to make sure they understand it from the grassroots what is going on. they have the ability and the balance sheet to hire people. attractivenessof to be involved with walmart, they are so big. >> marissa mayer is on that board as well. i can understand, kevin is a guy.

other specific issues that there -- there that is behind this specific acquisition? >> photos, pictures, i think they are trying to learn as much as they can from a lot of different people. personally, ihim do not know what strengths he brings, but he brings a technology event that is going to be pretty critical. maybe he will learn with the newest music is, i do not know. he is far younger than those on the board. >> i cannot think about the tens of thousands of walmart workers, more than half of whom make less than $25,000 a year. when are they going to speak to that issue of how they decide to pay their employees? >> that is probably not going to

be his expertise on the board. him coming and probably was not to deal with labor relations. they have other people throughout the company to do that. their argument will be that they pay competitively. open a store's open are openings -- store there are a lot more applications than there are openings. >> interesting stuff as always. thank you very much. the bwest byte is where we focus on one number that tells us a whole lot. byte no idea what the is. >> 100,000. that is how much people are

thinking that stock is going to to sellxbox is going this year in china. in units. it is a lot more expensive in china. $700ll sell about $600 to compared to $400 here. they only have about 10 games that are available. >> the list of games is kind of pathetic. there are no first-person shooters. there was a great headline from reuters calleing it bland fest auto. it is not available. halo is not available. they are trying to do that. instead of putting zombies in games, because that is not

popular in china, they will try to fill it with something else. >> thank you. more tomorrow. ♪

returned to the streets of hong kong. then, an exclusive interview with russian foreign ministers. we will test drive the latest mustang. >> to the viewers in the united states and those of us joining around the worldd welcome.