“Facebook helps you connect and share with the people in

your life.”

Facebook By Lana Maric, Shawneese Drake and Dan James

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 - TechnologyFacebook 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 custom-built search engine serving millions of queries a day, completely distributed and entirely in-memory, with real-time updates.

2004 - 2009When? - Timeline

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

2006-2007August, 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;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)

Facebook users communicate and share information through the social graph, the network of connections and relationships between people.

Strategic Focus of Facebook

Strategic FocusFacebooks 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 engagementNo longer would it be staticYou will interactAdvertisers can connect with users and do so

as part of their experience and as part of the sharing

BreakdownFacebook has three methods of producing

revenue.local text ads (from the college and local

businesses), running at $15-20 per daytraditional banner ads, sold on a national

basissponsored groups – examples included Apple,

EA, etc.

Financials Doing well financially Expect to grow 70% year-over-year this

yearProfitable on a basis for five consecutive

quartersThey have a business model and their ad

business is working quite well.

Strategic Focus - PlatformFacebook’s most important strategic asset is its network

of 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!

PlatformEvery 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

StrategyFacebook 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 - MicrosoftAdvertising Microsoft Popfly Facebook and Microsoft Corp.

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.

Microsoft’s Popfly is a web-based 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: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.Newswee

k InteractiveEtc

Top 25 Social Networks

Strategy Facebook - Users Facebook -

MarketersCompany Size 300 Million + 100 million +

Target Market The Y Generation (originally college students)

But, the fastest growing demographic is those 35 years old and older

Middle schoolers to Generation X to some seniors

All Advertisers

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.comEnter 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.

How is Facebook Used? 2. Are your Friends Already on

Facebook SearchThis 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 ToolbarInbox 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 UsabilityFactors 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

Best on the net for sharing photos and events in terms of user experience and navigation

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

Factors That Encourage Use

Factors that Discourage Use

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

Fantastic Viral 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.

Number 1 photo sharing application on the internetVideo uploading feature enables product promotion and instant awarenessFacebook 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 ApplicationsFacebook leads in Application availability. It has 52,000 applications available compare to only 7,500 that Myspace has available.

ApplicationsFacebook

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 PollTop 5 Reasons in Order of Importance

Reason #1:obtain news or product updates

Reason #2:view promotions

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 RatioSource: 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: 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.

Bliss Wellness Center: 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 use Facebook Connect

Over 30 million FB users access through a mobile device

Twitter Users spend 66% more than non-Twitter users

LinkedIn has more than 365,000 company profiles

More than 1 Million 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 EndThanks for Viewing