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Transcript of Facebook
The History of Facebook
Advertising Requirements on Facebook
Facebook User Benefits
by Abigail Wilt, Shakeen Nettles, and Steven Young
As of August 2014...
1.15 billion active users
72% of online adults visit Facebook at least once/month
829 million daily active users (DAU)
152 million DAU in US & Canada
Canada has the most DAU
66% of 15-34 yr. olds use Facebook
Facebook stores more than 300 petabytes of user information
23% log in 5+ times/day
70% of teens are Facebook friends with their parents
Facebook is 42% males users and 58% female users
45% of people aged 65+ use FB
30% of users have Bachelor's degrees
2.7 billion pages are liked on Facebook.
The Importance of Likes
1/2 of Facebook users said they would be more likely to recommend, talk about, or purchase company products after following on social media.
Liking a page and commenting provides a company with important information, like the user's demographic statistics.
Top 3 Facebook Fan Pages:
Carlson, N. (2010, 03 05). At last, the full story of how Facebook was founded. Retrieved 9 Sept. 2014 from www.businessinsider.com/how-facebook-was-founded-2010-3?op=1
Facebook. (2014). Ad set cost and budgeting. Retrieved 8 Sept. 2014 from https://www.facebook.com/help/318171828273417/
Oxford Dictionary. (2014). Unfriend. Retrieved 8 Sept. 2014 from http://www.oxforddictionaries.com/us/definition/american_english/unfriend#
Phillips, S. (2007, 07 24). A brief history of Facebook. Retrieved 9 Sept. 2014 from http://www.theguardian.com/technology/2007/jul/25/media.newmedia
Smith, C. (2014, 09 09). By the numbers: 155 amazing Facebook user & demographic statistics. Retrieved 7 Sept. 2014 from http://expandedramblings.com/index.php/by-the-numbers-17-amazing-facebook-stats/
Tabak, A. (2004, 02 09). Hundreds register for new Facebook site. Retrieved 8 Sept. 2014 from
Wasserman, T. (2013, 04 17). A Facebook fan is worth $174, researcher says. Retrieved 8 Sept. 2014 from http://mashable.com/2013/04/17/facebook-fan-value-researcher/
What's the cost of putting an ad on Facebook?
The cost of your ad is up to you!
Cost Per Thousand Impressions (CPM)
Cost Per Click (CPC)
Only pay for the clicks or impressions you receive
Different Types of Bids
What is a bid
Cost per mille (CPM) - get viewers
Cost per click (CPC) - get click-throughs
Optimized cost per mille (oCPM) - shows your ad to people most likely to take action
Cost per action (CPA) - encourages people to click "Like" or take action
What should I bid for an ad?
Maximum amount you're willing to pay for that objective
Ex., if objective is page likes, how much is a page like worth to you?
Do you want to maximize for profits or for growth?
System uses maximum bids - your cost will not exceed your set budget.
Bid true to value!
All ads of targeting criteria are visible
Provides drop-down menu to filter by country, geolocation
All targeted ads are viewable by Facebook regardless of targeting
Determined by the ad provider: You can restrict access to ads for certain logins.
Easily viewable format
Offers in single column layout
Display ads in 1 or 2 column
Launched February 2004
Founded by Mark Zuckerberg while studying psychology at Harvard
Name was taken from sheets of paper distributed to freshman profiling students and staff
Co-founded by Dustin Moskovitz and Chris Hughes
Eduardo Saverin was the initial financier
Ads/offers displayed same as users see them
All ads/offers displayed to users appear in tool bar
Selector at top of page if both ads/offers available
Ads can be flagged by Facebook users for content
Feedback mechanism does not confirm/approve flagged Facebook ads
If ad issues persist, an email can be sent to Facebook to be reviewed.
All ads/offers are clickable and viewer is taken to the landing page
If landing page is not available in a certain region/country, the ad/offer will not be shown to the user
Information from Facebook Advertising
Posting text/photos/videos to your own wall
Posting text/photos/videos to a friend's wall
Posting on a Group Wall
Posting on an Event Wall
Sharing an interesting post
People can "friend" people about whom they'd like to see updates
Facebook recommends people based on "Mutual Friends"
"Unfriend" has been added to the Oxford Dictionary
Hashtags, Likes, & Trending Topics
Shows a collection of your friends' posts
Shows advertisements targeted to your demographic
Shows group updates/event updates/birthdays
Shows photos/shares that your friends have been tagged in
Features a "Chat" function on the right hand side
Shows current trending topics
Shows a running ticker of what your friends are doing
Facebook was created to connect people to one another.
Add family members on your profile
Can specify relationship
Facebook Fan Pages
Beginning of a Social Network
The Facebook allowed students to search for each other by course, social organization, and houses
Boasted privacy and security features
The core ideas of the site spread across the dorm rooms of Harvard, Stanford, and Yale
When The Facebook became a student network phenomenon Zuckerberg and Moskovitz dropped out of Harvard to run The Facebook full time
Facebook investors included PayPal cofounder Peter Thiel, Accel partners, and Greylock partners
In 2007 Microsoft invested 246 million for a 1.6% share
Google and Yahoo offer to buy Facebook but Zuckerberg declines
Facebook Goes Public
Publicly Traded Company
Began Trading on NASDAQ
on May 18, 2012
Sold at $38 per share
IPO raised 16 billion
Stock is currently $77.98
From 2012-2013, Facebook's user base only increased 23%.