Emlyn Jacoby

1. Emlyn Jacoby Facebook‘If you have a computer, you’re probably on Facebook. You’re networking with friends, adding personal details, storing your email address & cell phone number, uploading pictures, and much more’

2. Facebook • Is a social networking website launched the 4th of February 2004. • Is a free-access website that is privately owned and operated by Facebook, Inc. • Users of the SNS can join networks organized by city, workplace, school, and region to connect and interact with other people. • The websites’ name refers to the paper facebooks depicting members of a campus community that some US colleges give to incoming students, faculty, and staff as a way to get to know other people on campus.

3. History of the Company • Mark Zuckerberg founded "The Facebook", originally located at ‘ thefacebook.com’, on 4th February 2004 while attending Harvard University as a sophomore. • The company dropped The from its name after purchasing the domain name ‘facebook.com’ in 2005 for $200,000. • Membership was initially restricted to students of Harvard College, and within the first month, more than half the undergraduate population at Harvard was registered on the service.

4. History of the Company • In March 2004, Facebook expanded to Stanford, Columbia and Yale. It expanded rapidly when it opened to all Ivy League schools and gradually most universities in Canada and the United States. • In June 2004, Facebook moved its base of operations to Palo Alto, California. • Facebook launched a high school version in September 2005. • Facebook was then opened to everyone, 13 years and older with a valid e-mail address on 26th September2006.

5. How Facebook was Funded • Fall 2004: $500,000 from Peter Thiel (a co-founder of PayPal). • May 2005: $13 million from Accel Partners. • April 2006: $25 million from Greylock Partners. • November 2007: $60 million from Hong Kong billionaire Li Ka-shing.

6. Management Team • Mark Zuckerberg (CEO / Founder) • Dustin Moskovitz (Co-Founder / Programmer) • Chris Hughes (Co-Founder / Promotional) • Eduardo Saverin (Co-Founder / Business) • Andrew McCollum (Co-Founder / Graphic) • Sheryl Sandberg (COO) • Matt Cohler (Product Management) • To date Facebook has 700 employees.

7. Things you need to know !!! • The terms can change any time • Personal use only • A single, individual user account • You’re giving up a HUGE license • Applications are NOT guaranteed safe • Disputes are arbitrated under Delaware law • You surrender all submissions • Privacy is NOT guaranteed

8. Facebooks’ Competitors • MySpace • Bebo • Hi5 • Friendster • Tagged • Reunion.com • myYearbook • Classmates.com

9. Marketshare

10. Explosive growth in 2006 • Facebook is the second largest networking site with 42million active users • Facebook is now the fourth-most trafficked site in the world • Between June 2006 and June 2007 growth elevated to 270% • Since Facebook has expanded registration to include users outside the US number of active users has doubled Social Networking Sites Jun-06 Jun-07 Change % • MySpace 66,401 114,147 72% • Facebook 14,083 52,167 270% • Hi5 18,098 28,174 56% • Friendster 14,917 24,675 65% • Orkut 13,588 24,120 78% • Bebo 6,694 18,200 172%

11. International Reception • Facebook has developed a strong following in English-speaking countries only. • There is far less growth in Europe and Asia as the website is only available in English. • Facebook’s growth in Europe mainly stems from the energy created from the UK’s. • Facebook has not had much success in Germany to date. • Facebook has only just recently secured a foot hold in France since 2007.

12. Closer look at Reception European unique visitors Jan 07 July 07 % origin internet audience 218,063 224,759 3% EU • MYSPACE 20,341 25 ,176 24% US • Skyrock Network 11,327 13,785 22% FR • BEBO 7,461 12,101 62% UK • FACEBOOK 2,066 10,795 422% US • HI5 6,979 9,554 37% US • PICZO 7,557 8,035 6% US • NETLOG 8,140 7,450 -8% BEL • A third of the Canadian population has joined Facebook as of June 2007, a growth of more than 3,000% in a year. • The United Kingdom is the third largest country with more than5 million active users. • There were 42,000 members in the France network in June 2007, and now there is more than 127,000 which is a growth of 300%.

13. Advertising • Facebook generates revenue from advertising. • Advertise through banner ads and referral marketing. • Banner Ads: • placing an advertisement into a web page that attracts traffic to that desired web page. • Referral Marketing: • is gaining new customers through word of mouth.

14. Features • There are many features for users to interact with each other such as, walls, pokes, photos, and updates on personal status. • Over time they have added, news feed, notes, and just recently a live chat messenger. • 24th May 2007 ‘Facebook platform’ was launched to provide a framework for software applications to interact with those core features. • Among the Facebook platform, new features included gifts, marketplace (ads), events and videos.

15. New facebbook platform • With the launch of the Facebook platform, Facebook has been touted as an online Social Operating System • Developers build their own applications that lets them keep all their revenues they generate from the exploitation. • The success of an application is highly dependent on the application’s virility and its user base. • There are different ways of making money with these application: • Promoting third-party applications • Selling advertising space • Attracting sponsors • Selling online services • Selling products

16. Revenue Streams • Facebook generates revenue through display ads that makes up most of its current revenue through an advertising deal with Microsoft. • Facebook Flyers contribute as it allows users to design their own ads at a price valued to how much they are viewed. • The sponsored groups seems to be the major potential source of future revenue ($300,000 for a 3 month presence) many companies are already present such as Nike, Victoria’s Secret, … • Limited edition gifts are for sale at a low price.

17. What made them successful ?? • Facebook used an open source platform. • Open source platform - allowing anyone to create an account and submit widgets to be used on the site. • By allowing anyone it creates a greater sense of a community that encourages developers to actively participate in the sites upward mobility. • Facebook has and is rapidly becoming a tool for any businesses that are, can, and should be using to increase its growth through selling more and staying connected to their target markets. • The great news is the service is free unless they choose to participate in paid ads as all target users with ads are based on massive amounts of information people have revealed about themselves on the site .

18. Using Facebook for themselves • Businesses find contacts • Businesses can connect with prospects, clients, competitors, potential partners and the gate keepers for their prospects in a non threatening fashion. • Creating expert status • For businesses this is the perfect place to create visibility and become recognized as the expert in their field. A strategy that would include consistently showing up and providing relevant postings in their area of expertise can only expand their reach.

19. Using Facebook for Themselves • Target marketing- • Users of Facebook share demographics, psychographics, and techno-graphics about themselves that in the past you would have paid a lot of money for. Businesses can also use paid ads on Facebook that allow them to only market and promote to their identified target market. • Optimizing search engines • Facebook is indexed for the search engines. Pages are used for business profiles and should be shared with their fans which allows the businesses to accumulate as many fans as they can.