Facebook revenue guru says demand generation is secret to ad success

I wrote a post the other day about how, after talking to loads of Facebook advertisers, the social networking giant appeared to be morphing into a threat to paid search giant Google (GOOG). I recently had a long chat with Facebook's Director of Monetization Tim Kendall. He's one of the key guys in charge of upping the Palo Alto, California-based company's revenues by shaking more marketing dollars out of brands and companies seeking to advertise on the platform. We talked about advertiser behavior, what Facebook has changed in its ad offerings and other topics. Here is a lightly edited transcript:

DailyFinance:Something has changed. I talked to dozens of companies that said they upped their Facebook advertising spend recently and plan on spending more. What did you guys do the advertising tools?

Tim Kendal: Each week, we were adding new features that made it easier for advertisers to order their ads and see the value that their ads were creating for them in terms of bringing more customers to their site or to their Facebook page -- or wherever they want to push their traffic to. The solution that we launched in November 2007 is fundamentally the same one we have today.