Profits vs. PrivacyFacebook’s Dilemma

Bianca Beckermann

Nicole Mahfoud

Facebook

the largest and most widely used website for

Social Networking in the world.

it’s design is simple and includes tools that

allow users to connect with

friends, family, colleagues, etc.

Designed for personalized advertising

Facebook pages is the way to connect

businesses and brands to the general

audience

The Inconvenience

Highly expensive to maintain since uses

upload more than 2 billion photos and 14

million videos monthly.

In 2008, Facebook sales were about $265

million but were still on the downsides in

regards to covering costs.

70% of Facebook’s users are out of the US

and are very doubtlfully making purchases.

Privacy

A general concern within all page users

Advertising companies want this type of

information

Sharing this information posses the success

of facebook’s finances

The dilemma stand with sharing this

information without violating user privacy

remarks

Facebook growth

Facebook is still growing more than its

competitors, and aims to beat

Microsoft, Google, and other giants as a

portal to share information.

Customers are more educated about privacy

and some believe that the benefits of the

large audience and features outweigh the

privacy issues.

E-Commerce is incredibly important

now a days, facebook is applying it by

including a variety of tools to allow

users to connect and interact with

other users, through messaging, third-

party applications, photo-sharing, and

more.

Questions

Web 2.0 is highly associated with web

applications that revolve around using

interactive information

sharing, networking, and collaboration

among users. Facebook has revolved its

website with this idea because it provides

hands on user access and experience

with the website

Users of facebook have two major concerns:

what their information is used for, and how

much of it is visible in an unauthorized

manner. This was present within the

Beaccon case as well.

The page makes its revenues mainly from

advertisements shown to their users;

however, their business model has proven to

be successful because it has been able to

classify its users based on demographics

and other characteristics.

Operating the website successfully

without compromising user trust is

key to facebook’s success. Finding a

way to sell information without

involving users directly is something

facebook is investing in.

Thank You