Facebook
By Lana Maric, Shawneese Drake and Dan James
“Facebook helps you connect and share with
the people in your life.”
What is Facebook?
 Founded in February 2004, Facebook is a social service that
helps people communicate more efficiently with their friends,
family, etc.
 The company develops technologies that facilitate the sharing
of information through the social graph, the digital mapping of
people's real-world social connections.
 Anyone can sign up for Facebook and interact with the people
they know in a trusted environment.
 Facebook’s simplified navigation gives users easy access to core
site functions and applications.
 Profile, Friends, Networks and Inbox – pages foundation to the user
experience on Facebook – place at the top of the user’s profile page.
 Facebook applications – Photos, Notes, Groups, Events and Posted
items – are displayed on the left side bar, along with any third-party
applications a user has added to their account.
Facebook - Technology
 Facebook is the second most-trafficked PHP site in the
world, and one of the largest MySQL installations anywhere,
running thousands of databases.
 Facebook has built a lightweight but powerful multi-language
RPC framework that allows the company to seamlessly and
easily tie together subsystems written in any language,
running on any platform.
 The company is the largest user in the world of memcached,
an open-source caching system, and has created a custombuilt search engine serving millions of queries a day,
completely distributed and entirely in-memory, with realtime updates.
When? - Timeline
2004 - 2009
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2004 - 2005
February, 2004 Mark Zuckerberg and co-founders Dustin Moskovitz,
Chris Hughes and Eduardo Saverin launched Facebook from their
Harvard dorm room
March, 2004 Facebook expands from Harvard to Stanford, Columbia
and Yale
June, 2004 Facebook moves its base of operations to Palo Alto, Calif.
September,2004 Groups application was added; the Wall was added as a
Profile feature
December , 2004 Facebook reached nearly 1 million active users
May, 2005 Facebook raises $12.7 million in venture capital from Accel
Partners;
Facebook grows to support more than 800 college networks
August , 2005 The company officially changed its name to Facebook
from thefacebook.com
September, 2005 Facebook expanded to add high school networks
October, 2005 Photos was added as an application
Facebook began to add international school networks
December, 2005 Facebook reached more than 5.5 million active users
2006-2007
 August, 2006 Facebook development platform launched;
Notes application was introduced;
Facebook and Microsoft form strategic relationship for banner ad
syndication
 September, 2006 News Feed and Mini-Feed were introduced with
additional privacy controls;
Facebook expanded registration so anyone could join
 March, 2007 Facebook reached over 2 million active Canadian
users and 1 million active UK users
 October, 2007 Facebook reached over 50 million active users;
Facebook launched Facebook Platform for Mobile;
Facebook and Microsoft expanded advertising deal to cover
international markets; Microsoft takes a $240 million equity stake
in Facebook
 November, 2007 Facebook launched Facebook Ads
2008-2009
 February, 2008 Facebook launched in Spanish and French
 March, 2008 Facebook updated privacy controls to include Friend List
privacy;
Facebook launched in German
 April, 2008 Facebook launched Facebook Chat;
Facebook released Translation application to 21 additional languages
 January, 2009 Facebook reached over 150 million active users;
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CNN Live/Facebook integration
April, 2009 Facebook reached over 200 million active users
May, 2009 Digital Sky Technologies maked a $200 million investment
for preferred stock at a $10 billion valuation
June, 2009 Facebook launched Facebook Usernames
September, 2009 Facebook reached over 300 million active users
 Notice April to September - 100 million jump (Still Expanding)
Strategic Focus of Facebook
Facebook users communicate and share
information through the social graph, the
network of connections and relationships
between people.
Strategic Focus
 Facebooks business strategy is really simple.
 Their business is advertising
 Marketers all over the world have to sell products and services and
therefore they need to generate a demand for those services. So,
Facebook , realizing that marketers generate this demand based on
where people spend their time, decided to enable connections.
 Facebook enables people to connect with users and provide
advertising that is not obtrusive, yet part of the user experience.
Advertising
 How is facebook’s advertising approach different?
 The Web promises engagement
 No longer would it be static
 You will interact
 Advertisers can connect with users and do so as part of
their experience and as part of the sharing
Breakdown
 Facebook has three methods of producing revenue.
 local text ads (from the college and local businesses),
running at $15-20 per day
 traditional banner ads, sold on a national basis
 sponsored groups – examples included Apple, EA, etc.
Financials
 Doing well financially
 Expect to grow 70% year-over-year this year
 Profitable on a basis for five consecutive quarters
 They have a business model and their ad business is
working quite well.
Strategic Focus - Platform
 Facebook’s most important strategic asset is its network of
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users.
Facebook Platform is a development platform that enables
companies and engineers to deeply integrate with the
Facebook website and gain access to millions of users
through the social graph.
Facebook is a part of millions of people’s lives all around
the world providing unparalleled distribution potential for
applications and the opportunity to build a business that is
highly relevant to people’s lives.
Facebook was able to successfully maintain a very personal
feel, finding hundreds of ways to link the most relevant
people, in the most relevant ways.
Facebook’s main focus is on building, maintaining, and
leveraging its core strategic asset, its network!
Platform
 Every month, more than 70% of Facebook users engage
with Platform applications
 There are more than 350,000 active applications
currently on Facebook Platform
 There are more than 250 applications which have more
than one million monthly active users
 There are more than 15,000 websites, devices and
applications that have implemented Facebook Connect
since its general availability in December 2008
Strategy
 Facebook and Amazon.com teamed up to develop
an application called “Book Reviews” that lets
Facebook users write and display book reviews on
their profile pages. Facebook users can then click
on the “Buy at Amazon” button to go to
Amazon.com and complete their purchase.
Strategic Intent - Microsoft
Advertising
Microsoft Popfly
 Facebook and Microsoft Corp.
 Microsoft’s Popfly is a web-based
today announced a strategic alliance
in which the two companies will
collaborate to bring relevant
advertising to the more than nine
million registered users of
Facebook, the Internet’s leading
social utility.
 Microsoft’s advanced advertising
technology and Facebook’s unique
social network make possible the
multi-year collaboration grounded
in the two companies’ commitment
to technological innovation.
tool that gives Facebook users the
ability to create applications and
add them to their profiles with no
programming needed.
 For example, users can create and
embed parts of websites directly in
their profiles.
 “The partnership between
Microsoft and Facebook opens up
exciting new opportunities that
allow anyone to build dynamic,
interactive applications using the
Facebook social graph,” said Dan’l
Lewin, corporate vice president,
Strategic and Emerging Business
Development, Microsoft Corp.
Other developer partners which have built
applications on Facebook Platform include:
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All Widgets, LLC;
Attendio;
Bitnik;
Blue Nile;
Box.net;
Bunchball;
Channels.com;
CollegeHumor;
Radar;
Red Bull Energy Drink;
RockYou!;
Slide;
Snapvine, Inc.;
Ether;
Fantasy Moguls;
FASHION FOR THE PEOPLE;
Forbes.com;
FORD MODELS;
HOT or NOT;
Obama for America;
SplashCast, Inc.;
Twitter, Inc.;
uPlayMe;
Warner Bros. Records;
Washingtonpost.Newsweek
Interactive
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Top 25 Social Networks
Strategy
Facebook - Users
Facebook - Marketers
Company Size
300 Million +
100 million +
Target Market
The Y Generation (originally
college students)
All Advertisers
But, the fastest growing
demographic is those 35
years old and older
Middle schoolers to
Generation X to some
seniors
Product/Service
Service
Service
Low/High Cost
Free
Low ($15 – $20 dollars per
day per ad)
Global/Local
Global
Global
How is Facebook Used
How is Facebook Used?
1.
Sign up and create a Facebook account
In order to create an account, you must have a valid email
address. For our Facebook page, we created a gmail address
just for our group. Then click “register” to complete a
short registration form.
Registration Process:
Go to the Facebook homepage by tying www.facebook.com
Enter your name.
Enter your email address and password.
Select Male or Female.
Mark your birthday.
Click on “signup.”
Open the email that you used to join Facebook.
Open the Open the Registration Confirmation email from
Facebook.
 Click on the verification link.
 By registering, you now have your log in information, which
allows you to finish creating your profile.
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How is Facebook Used?
2. Are your Friends Already on Facebook Search
This step enables you to quickly find your friends on
Facebook through your email search (or instant
messenger):
“Many of your friends may already be here. Searching your email
account is the fastest way to find your friends on Facebook.”
How is Facebook Used?
How is Facebook Used?
3.
After uploading our avatar picture, our profile was created.
Exploring Facebook Toolbar
 Home Button: enables you to
return to your Facebook
home page.
 Profile Button:
1. Enables you to view and edit
your profile.
2. Allows you to share
information with your
friends. You can exchange
photos and messages.
3. You can set privacy options
here as well, which determine
who can see your profile and
whether or not you want your
profile to be public or private.
Profile Tabs:
1.
Wall—shows messages that
your friends write for you.
2.
Info—displays basic
information about yourself
such as your email, contact
information and work.
3.
Photos—shows all of the
pictures you posted.
4.
+ Tab—Allows you to add a
new tab such as links, notes,
events and even videos!
Once selected, the
additional tabs then get
added to your profile page.
Exploring Facebook Toolbar
Friends button: to view your friends, find friends, and add
new friends. Your friends can see your status updates, view
your profile and even receive news feeds about you.
Exploring Facebook Toolbar
Inbox Button—enable friend to friend communication on a
more personal level. These messages are private.
1. Click on Compose New Message.
2. Enter the name of the message recipient. Type the message.
3. Click the Send button.
Note about Networks:
You can join up to five networks, but one network must be
classified as your primary network.
Pros and Cons of Usability
Factors That Encourage Use
Factors that Discourage Use
Tabs clearly labeled
Site can appear cluttered with
information decreasing user
satisfaction
Most browsers supported
Animation/graphics from side ads
can decrease user control
Privacy control options, security
filters, and ignore features allow
more user control and maximize
user experience
Spam and influx of useless
applications, e.g., What were you
in your previous life? What color
of the rainbow are you? Even
when you block some
applications, new get created and
the process continuous—
applications can decrease user
productivity and be a big
annoyance
Factors That Encourage Use
Best on the net for sharing photos
and events in terms of user
experience and navigation
Factors that Discourage Use
Information you post may be used
against you in the future—at
work, school, with your loved
ones, etc.
Live chat and instant mass
promotion
Opens doors for stalking
opportunities
Has a reputation of being “safer
than Myspace”—its biggest
competitor.
No easy metric to measure how
many of your Facebook
interactions convert to actual sales
Ability to tag your friends in
photos
Why is Facebook Used?
Over 300 million active users
• Half log in to Facebook every day
• A Facebook user has 130 friends on average
• Quick and free relay of information to gain new clients and stay
connected with current customers
FantasticViral Marketing Source
• Individuals with high Social Networking Potential are within reach
• Create marketing buzzwords , increase brand awareness, and create product groups
• Status updates, wall posts, pokes, tags, and gifts are way s to personalize user interaction (
communication is multi-dimensional).
• Groups are a great way to target specific markets and allow users of that group to promote
the brand through user interaction. For example, the Apple group is one of the largest
groups; it enables group followers to be the first ones to learn about discounts and
promotions.
Applications-One stop for all your marketing needs
• Number 1 photo sharing application on the internet
• Video uploading feature enables product promotion and instant awareness
• Facebook pages are maximized through applications , which strengthen business
identity
Get connected through events: For example, Facebook events
enable a user to enter date, time, location and even description
which can be then spread to multiple users with just one click.
The event feature can be utilized for product promotion start
dates, special discounts, product launches, etc.
Cross integration with Twitter: Facebook is even integrated
with Twitter. Updating content on Facebook auto updates the
Twitter status. The integration enables more Twitter followers
to check out your Facebook page and it directs your Facebook
fans to your Twitter account.
Facebook is innovative. It is constantly developing and
changing to keep up with the technology. Facebook has a
competitive advantage as a leader in its industry when it comes
to user engagement through its platform.
Facebook Connect: Facebook Connect
Link: What is it? (Free)
If you allow your Web site to utilize the
Facebook Connect application, then you will:
1. Increase traffic to your site.
2. Maximize site engagement (users can automatically find their friends
upon log in and begin the engaging process).
3. Registration is no longer a hassle.
Facebook Vs. Myspace on Applications
Facebook
leads in
Application
availability. It
has 52,000
applications
available
compare to
only 7,500
that Myspace
has available.
Applications
Facebook
Myspace
According to chart from www.addtoany.com, Facebook is
the most popular way online users share information:
•24% share
information through
Facebook
•11% share
information through
Email—a second
choice
•10.8% share
information through
Twitter—a third
choice.
Clearly, Facebook
is very it’s at!
Why is Gen Y on Facebook?
Gen Y is the largest share of active Facebook Users
Source: PMN Research Poll
Top 5 Reasons in Order of Importance
Reason #1:obtain news or product updates
Reason #2:view promotions
Reason #3: view or download music or videos
Reason #4: share opinions
Reason #5: connect with other customers
Who is Using Facebook?
Facebook is not just for your average folk; political leaders, celebrities,
professional athletes, media outlets, and public figures are all using Facebook.
According to “Who’s Sharing on Facebook” press release,the following
are all utilizing its features:
 “President Obama is rallying support for new U.S. policies and initiatives”
 “The Oprah Winfrey Show is giving viewers a new way to interact”
 “U2 is connecting with fans of their new album”
 “CNN is providing breaking developments to news junkies”
 “Stanford University is sharing its discoveries and knowledge”
 “The NBA’s star athletes are posting photos and video highlights from their
games”
Male to Female Ratio
Source: O’Reilly Research
Who Uses Facebook by Age:
Source: O’Reilly Research
Did you know?
 35 years old and older
currently represent the
fastest growing group on
Facebook (over the last
year)
 65 million active users are
accessing Facebook through
their mobile devices; they
are on average 50% more
active than non-mobile
users.
 Students represent one of
the most carefree groups
on Facebook: 60 percent of
students do not utilize
privacy options.
Local Facebook Users:
Malone’s Restaurant:
Bliss Wellness Center:
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Provides product and service: food
 Close to 5000 fans
 Recent update:
“Remember us during the Keeneland Fall Meet.
Make sure to book your reservations early to
get the time you want.”
 Weakness: not a lot of pictures. Only posted
one food photos.
 Opportunity: Malone’s should utilize the event
feature to post specials and special occasions
to maximize user interaction.
 Strength: fans are very engaged in the
discussion on the wall.
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Provides services: yoga, pilates, mediation, etc.
53 fans
Recently opened small business in Lexington
Strives to be “Cental Kentucky’s premier
resource for whole person care. “
Weakness: no user engagement. Needs to
utilize Facebook applications to spread the
word and gain fan base.
Opportunity: Bliss Wellness should make
their own Web site more interactive and use
features such as Facebook Connect to
integrate the two web sites.
Strength: Great utilization of many Facebook
features such as events, promoting
discounts/coupons, photos, etc.
Where is Facebook Used?
USA Today on Social Network
Competition
 Over 10,000 Websites
 More than 1 Million
use Facebook Connect
 Over 30 million FB
users access through a
mobile device
 Twitter Users spend
66% more than nonTwitter users
 LinkedIn has more than
365,000 company
profiles
small businesses
promote their goods and
services on MySpace
 SmartPhones are driving
these numbers even
higher
 ABI Research predicts
that the mobile, social
networking industry will
be a $3.3 Billion market
worldwide by 2013
The End
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