Facebook B y Lana M aric , S hawneese Drake and D an J ames

1. FacebookBy Lana Maric, Shawneese Drake and Dan James “Facebook helps you connect and share with the people in your life.”

2. 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.

3. Facebook - Technology • Facebook 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.

4. When? - Timeline 2004 - 2009

5. 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

6. 2006-2007 • August, 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

7. 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)

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

9. Strategic Focus • Facebooks 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.

10. Advertising • How is facebook’s advertising approach different? • The Web promises engagement • No longer would it be static • You will interact • Advertisers can connect with users and do so as part of their experience and as part of the sharing

11. Breakdown • Facebook has three methods of producing revenue. • local text ads (from the college and local businesses), running at $15-20 per day • traditional banner ads, sold on a national basis • sponsored groups – examples included Apple, EA, etc.

12. Financials • Doing well financially • Expect to grow 70% year-over-year this year • Profitable on a basis for five consecutive quarters • They have a business model and their ad business is working quite well.

13. Strategic Focus - Platform • Facebook’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!

14. Platform • Every 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

15. Strategy • Facebook 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.

16. Strategic Intent - Microsoft Advertising 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’lLewin, corporate vice president, Strategic and Emerging Business Development, Microsoft Corp.

17. 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.Newsweek Interactive • Etc

18. Top 25 Social Networks

19. Strategy

20. How is Facebook Used

21. How is Facebook Used? • 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.

22. Registration Process: • Go to the Facebook homepage by tying www.facebook.com • Enter 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.

23. How is Facebook Used? 2. Are your Friends Already on Facebook Search This 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.”

25. How is Facebook Used?

26. How is Facebook Used? • After uploading our avatar picture, our profile was created.

27. 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: • Wall—shows messages that your friends write for you. • Info—displays basic information about yourself such as your email, contact information and work. • Photos—shows all of the pictures you posted. • + 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.

28. 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.

29. Exploring Facebook Toolbar Inbox 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.

30. Pros and Cons of Usability

32. Why is Facebook Used?

35. Facebook Connect: Facebook Connect Link: What is it? (Free)

36. Facebook Vs. Myspace on Applications Facebook leads in Application availability. It has 52,000 applications available compare to only 7,500 that Myspace has available.

37. According tochart 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!

38. Why is Gen Y on Facebook?Gen Y is the largest share of active Facebook UsersSource: PMN Research PollTop 5 Reasons in Order of Importance

39. Who is Using Facebook?

40. 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”

41. Male to Female RatioSource: O’Reilly Research

42. Who Uses Facebook by Age:Source: O’Reilly Research

43. 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.

44. 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.

45. Where is Facebook Used?

46. 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

50. The EndThanks for Viewing