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FaceBook Case Study

This Prezi includes data on the Facebook Business Model, it's Statistics, Web Marketing plan and the Privacy issues.

Mahrukh Hakim

on 5 June 2011

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Transcript of FaceBook Case Study

General Growth More than 500 milion active users
50% users log in on any given day User Engagement On average, each user has 130 friends
More than 700 billion minutes are spent on FaceBook per month
More than 45 biillion status updates each day
More than 30 billion pieces of content shared each month (web links, news stories, blog posts, notes, photo albums, etc.) What is a Business Model? It is 3 things: 1) A Customer Value-creating Proposition
Mission + Vision to solve customer problem

2) An Economic Logic
Make profit/value from customer

3) Resources and Capabilities
Enough resources for creating value effectively Appplications Platforms International Growth Mobile More than 2 billion photos uploaded each month
More than 14million videos uploaded each month
More than 45 million active user groups exist More than 70 translations
70% FaceBook users outside United States More than 1million developers and enterpreneurs
From more than 180 countries
More than 70% users engage with Platform applications
More than 350,000 active applications running
More than 150,000 websites, device and apps have implemented FaceBook Connected (since 2008) More than 65 million active users using their mobiles
Twice as active than non-mobile users
More than 70% users engage with Platform applications
More than 200 million mobile operators in 60 countries promoting FaceBook Facebook Statistics What is ? Social networking service
Launched in February 2004
Founded by Mark Zuckerberg
Allows users to create a profile, add other users as friends, exchange message, share photos, videos, notes, play games, create events etc. FaceBook's Business Model Initially it was only limited to Harvard students
Expanded to Boston area schools and Ivy League
Since Septemeber 2006, available to all who are 13+ Microsoft has purchased a 1.6% stake in Facebook for $240 million.
This estimates Facebook's value at $15 billion, priced at over 100 times earnings. FaceBook is planning to launch SocialAds.
Its own social ad-network taking Google's Ad-Sense head on. What is Social Advertising? Applying marketing & advertising principles
To promote health and social issues
Bringing about positive behavior change Privacy Issues Enagages social context of viewers
Ads targeted on what is known about indvidual's social network
Social actions are powerful - act on trusted referrals
People influence other people Peer pressure
Friend recommendations
Social influence Advertisers look out to reach many social networks at once
Often look at Ad Networks to deliver ads across these networks through custom applications.
Contextual advertising or Interactive ads Guidelines Activate secure browsing settings
Make your contact information private
Protect your albums, videos, status updates Privacy is 1 of the main criticism of FaceBook:

Identity theft
Anorexia & Bulimia
Advertiser concerns
Cyberbullying, stalking & murder
Pro-mafia groups case
Trolling How FaceBook makes profit i) Local text ads - running at $15-20 per day
(from the college and local businesses)
ii) Traditional banner ads - sold on a global basis
iii) Sponsored groups - Apple, EA, etc., FaceBook vs. MySpace Advertising on FaceBook 1. Choose your target

Companies can target ads based on a user's profile information, such as age, gender, location, college, relationship status, and interests.
You can choose to target people who are fans of your company's Facebook page or friends of your fans. 2. Test, test and test some more

You can pay based on either the number of times people see the ad or the number of times people actually click on it.
Worth testing both payment types to see which is more cost effective. 3. Do your own tracking

Facebook keeps tabs on how many times your ads are shown and the number of clicks they receive.
But it doesn't track what users do after they click -- did they make purchases or just browse and move on?
Google Analytics (free) can help track which Facebook ads result in purchases 4. Make your ads pop

Ads must be crafted carefully, because it's tough to get noticed.
Facebook will reject your advertisement if you use an image that is deemed too risqué or language that is deemed offensive or lewd.
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