Professional Documents
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Social Networking Service
Social Networking Service
Social Networking Service
The main types of social networking services are those which contain category
places (such as former school year or classmates), means to connect with friends
(usually with self-description pages) and a recommendation system linked to trust.
Popular methods now combine many of these, with Facebook and Twitter widely
used worldwide, Nexopia (mostly in Canada); Bebo, VKontakte, Hi5, Hyves (mostly
in The Netherlands), Draugiem.lv (mostly in Latvia), StudiVZ (mostly in Germany),
iWiW (mostly in Hungary), Tuenti (mostly in Spain), Nasza-Klasa (mostly in Poland),
Decayenne, Tagged, XING, Badoo and Skyrock in parts of Europe; Orkut and Hi5 in
South America and Central America; and Friendster, Mixi, Multiply, Orkut, Wretch,
renren and Cyworld in Asia and the Pacific Islands and Twitter, Facebook, LinkedIn
and Orkut in India.
There have been attempts to standardize these services to avoid the need to
duplicate entries of friends and interests (see the FOAF standard and the Open
Source Initiative).
Although some of the largest social networks were founded on the notion of
digitizing real world connections, many networks focus on categories from books
and music to non-profit business to motherhood as ways to provide both services
and community to individuals with shared interests.
History
The potential for computer networking to facilitate new forms of computer-mediated
social interaction was suggested early on. Efforts to support social networks via
computer-mediated communication were made in many early online services,
including Usenet, ARPANET, LISTSERV, and bulletin board services (BBS). Many
prototypical features of social networking sites were also present in online services
such as America Online, Prodigy, and CompuServe.
Early social networking on the World Wide Web began in the form of generalized
online communities such as Theglobe.com (1995), Geocities (1994) and Tripod.com
(1995). Many of these early communities focused on bringing people together to
interact with each other through chat rooms, and encouraged users to share
personal information and ideas via personal webpages by providing easy-to-use
publishing tools and free or inexpensive webspace. Some communities - such as
Classmates.com - took a different approach by simply having people link to each
other via email addresses. In the late 1990s, user profiles became a central feature
of social networking sites, allowing users to compile lists of "friends" and search for
other users with similar interests.
New social networking methods were developed by the end of the 1990s, and many
sites began to develop more advanced features for users to find and manage
friends. This newer generation of social networking sites began to flourish with the
emergence of Makeoutclub in 2000, followed by Friendster in 2002, and soon
became part of the Internet mainstream. Friendster was followed by MySpace and
LinkedIn a year later, and finally, Bebo. Attesting to the rapid increase in social
networking sites' popularity, by 2005, MySpace was reportedly getting more page
views than Google.
Facebook, launched in 2004, has since become the largest social networking site in
the world.
Today, it is estimated that there are now over 200 active sites using a wide variety
of social networking models.
Emerging trends in social networking
As the increase in popularity of social networking is on a constant rise, new uses for
the technology are constantly being observed.
At the forefront of emerging trends in social networking sites is the concept of "real-
time web" and "location based." Real time allows users to contribute content, which
is then broadcasted as it is being uploaded - the concept is analogous to live radio
and television broadcasts. Twitter set the trend for "real time" services, where users
can broadcast to the world what they are doing, or what is on their minds within a
140 character limit. Facebook followed suit with their "Live Feed" where users'
activities are streamed as soon as it happens.While Twitter focuses on words, Clixtr,
another real time service, focuses on group photo sharing where users can update
their photo streams with photos while at an event. Friends and nearby users can
contribute their own photos and comments to that event stream, thus contributing
to the "real time" aspect of broadcasting photos and comments as it is being
uploaded. In the location based social networking space, Foursquare gained
popularity as it allowed for users to "check-in" to places that they are frequenting at
that moment. Gowalla is another such service which functions in much the same
way that Foursquare does, leveraging the GPS in phones to create a location-based
user experience. Clixtr, though in the real time space, is also a location based social
networking site since events created by users are automatically geotagged, and
users can view events occurring nearby through the Clixtr iPhone app. Recently,
Yelp announced its entrance into the location based social networking space
through check-ins with their mobile app; whether or not this becomes detrimental to
Foursquare or Gowalla is yet to be seen as it is still considered a new space in the
internet technology industry.
One popular use for this new technology is social networking between businesses.
Companies have found that social networking sites such as Facebook and Twitter
are great ways to build their brand image. According to Jody Nimetz, author of
Marketing Jive, there are five major uses for businesses and social media: to create
brand awareness, as an online reputation management tool, for recruiting, to learn
about new technologies and competitors, and as a lead gen tool to intercept
potential prospects. These companies are able to drive traffic to their own online
sites while encouraging their consumers and clients to have discussions on how to
improve or change products or services.
One other use that is being discussed is the use of Social Networks in the Science
communities. Julia Porter Liebeskind et al. have published a study on how New
Biotechnology Firms are using social networking sites to share exchanges in
scientific knowledge. They state in their study that by sharing information and
knowledge with one another, they are able to "increase both their learning and their
flexibility in ways that would not be possible within a self-contained hierarchical
organization." Social networking is allowing scientific groups to expand their
knowledge base and share ideas, and without these new means of communicating
their theories might become "isolated and irrelevant".
Social networks are also being used by teachers and students as a communication
tool. Because many students are already using a wide-range of social networking
sites, teachers have begun to familiarize themselves with this trend and are now
using it to their advantage. Teachers and professors are doing everything from
creating chat-room forums and groups to extend classroom discussion to posting
assignments, tests and quizzes, to assisting with homework outside of the
classroom setting. Social networks are also being used to foster teacher-parent
communication. These sites make it possible and more convenient for parents to
ask questions and voice concerns without having to meet face-to-face.
Social networks are being used by activists as a means of low-cost grassroots
organizing. Extensive use of an array of social networking sites enabled organizers
of the 2009 National Equality March to mobilize an estimated 200,000 participants
to march on Washington with a cost savings of up to 85% per participant over
previous methods.
The use of online social networks by libraries is also an increasingly prevalent and
growing tool that is being used to communicate with more potential library users, as
well as extending the services provided by individual libraries.
A final rise in social network use is being driven by college students using the
services to network with professionals for internship and job opportunities. Many
studies have been done on the effectiveness of networking online in a college
setting, and one notable one is by Phipps Arabie and Yoram Wind published in
Advances in Social Network Analysis.
Business model
Few social networks currently charge money for membership. In part, this may be
because social networking is a relatively new service, and the value of using them
has not been firmly established in customers' minds.[citation needed] Companies
such as MySpace and Facebook sell online advertising on their site. Their business
model is based upon large membership count, and charging for membership would
be counterproductive. Some believe that the deeper information that the sites have
on each user will allow much better targeted advertising than any other site can
currently provide.
Social networks operate under an autonomous business model, in which a social
network's members serve dual roles as both the suppliers and the consumers of
content. This is in contrast to a traditional business model, where the suppliers and
consumers are distinct agents. Revenue is typically gained in the autonomous
business model via advertisements, but subscription-based revenue is possible
when membership and content levels are sufficiently high.
While doing some research on social networking domain, found some interesting
figures to share, which will surely drive the social networking development
companies.
Market at a glance-
The market for the internet and social networking communities is estimated at
about USD 1500M this year.
The top 3 player in the market are Myspace, Facebook and Bebo with market shares
80.74%, 10.32%, 1.18% respectively.( data is based on custom category of 20 of
the leading social networking websites ranked by market share of visits, which is
the percentage of traffic to the site, based on Hitwise sample of 10 million US
Internet users. The percentages represent the market share of visits among the
websites within the custom category.)
Growth Path
Social networking sites are growing 47% year on year increasing from an audience
of 46.8 million to 68.8 million in April 2006.
Social networking sites are the reality of the Internet; the content is relatively
inexpensive for publishers to produce.
The social networking sites that are seeing strong growth have developed a unique
online presence which is refreshed by user generated content. This promotes
ongoing consumers interest and visitor loyalty. The market share of Internet visits
to the top 20 social networking websites grew by 11.5 percent from January to
February 2007, to account for 6.5 percent of all Internet visits in February 2007.
Both companies are planning to extend their reach beyond the computer screen to
cell phones.
Cingular Wireless, Sprint Nextel and Verizon Wireless are starting a service that will
allow users to post messages on Facebook’s home pages or search for other users’
phone numbers and email addresses from a cell phone.
MySpace has a pact with Helio, a wireless joint venture between SK Telecom and
Earthlink, which will allow users to send photos and update their blogs or profiles by
cell phone.
Social networking sites enable users to publish content. Users may not consider
themselves content publishers (especially when they write mundane/brief postings),
but they are. Publishing content can create a number of legal issues, such as
defamation (making harmful false statements about someone else) or copyright
infringement. In this respect, social networking sites don't create any "new" legal
issues; users who publish content can be liable for their publication choices just like
other content publishers, such as newspapers or magazines.
Users often believe that they have some degree of anonymity for their statements
and actions on social networking sites, and in some cases they try to hide their true
identity. However, users' identities often can be easily revealed through legal
processes. Sometimes, users suffer adverse consequences due to their social
networking site, such as school discipline, foregone job offers or employment
termination.
Congress generally protects site vendors from legal liability for user-supplied
content. 17 USC 512(c) says that vendors generally aren't liable for user-supplied
copyright infringing content unless the copyright owner notifies the vendor and the
vendor fails to promptly remove the infringing content. 47 USC 230(c)(1) says that
vendors aren't liable under any circumstance for other types of legal claims based
on users' content (with minor exceptions).
Some legislators are concerned about the presence of sexual predators on social
networking sites, and they have proposed a variety of laws designed to restrict
predator access to the sites.
The Law of Social Networking Sites
Statutes
17 USC 512(c): a website isn't liable for hosting user copyright-infringing content
unless the website receives a notice from the copyright owner and fails to promptly
remove the content.
Virginia HB 2749/SB 1071 (enacted April 10, 2007): sexual offenders must
register their email addresses and IM screen names, and the police may set up a
mechanism for online businesses to check these registries.
Selected Cases
A.B. v. State, 863 N.E. 2d 1212 (Ind. Ct. App. April 9, 2007) (student posting
obscenity-laden comments to a fake MySpace page isn't guilty of criminal
harassment because comments were protected political speech).
Doe v. MySpace, Inc., 474 F. Supp. 2d 843 (W.D. Texas Feb. 13, 2007) (due to 47
USC 230, MySpace isn't liable for sexual assaults committed by users against other
users).
The Football Association Premier League Ltd v. YouTube, Inc., 1:07-cv-03582-UA
(S.D.N.Y. complaint filed May 4, 2007) (can copyright owners bypass the 512(c)
notification scheme?)
J.S. v. Blue Mountain School District, 2007 WL 954245 (M.D. Pa. March 29, 2007)
(school principal can suspend eighth grader who posted obscenity-laden fake
MySpace page in the principal's name).
Layshock ex rel. Layshock v. Hermitage School District, 412 F. Supp. 2d 502 (W.D.
Pa. January 31, 2006) (school can punish student for creating a fake MySpace page
in the principal's name).
Viacom International, Inc. v. YouTube, Inc. (S.D.N.Y. complaint filed March 13, 2007)
(does YouTube qualify for 512(c) safe harbor for user-posted copyright infringing
material).
KIDS Act of 2007 (H.R. 719/S. 431) (requiring sexual predators to register their
email addresses and other screen names and enabling social networking sites to
access those electronic identifiers so that the sexual predators can be blocked from
registering with the social networking sites).
H. Res. 224 (resolution requesting that social networking sites proactively remove
"enemy propaganda from their sites," such as videos made by terrorists).
Understanding the Legal Issues for Social Networking Sites and Their
Users
It seems that everyone is a member of a social network these days. Whether it's
your kids on MySpace and Facebook, or your colleagues on LinkedIn, people are
taking advantage of these new online meeting spaces to make friends,
communicate and expand business opportunities.
But what are the legal obligations that arise out of the use of social networks, both
for the user and the sites themselves? The law in this area is still relatively
unsettled, but some recent developments have created intriguing precedent, and
legislation in motion promises to keep things interesting for the foreseeable future.
The two most important statutes to consider when discussing the legal liabilities
and obligations of the social networking sites are Section 512(c) of the Digital
Millenium Copyright Act and Section 230 of the Communications Decency Act.
Section 512
Section 512(c) removes liability for copyright infringement from websites that allow
users to post content, as long as the site has a mechanism in place whereby the
copyright owner can request the removal of infringing content. The site must also
not receive a financial benefit directly attributable to the infringing activity.
This creates an interesting problem for most sites that allow users to post music,
photos or video. For instance, several content owners have sued YouTube, the video
sharing site, for copyright infringement, and YouTube has claimed a 512(c) defense.
Since YouTube is a subsidiary of Google, its future business plan most likely involves
serving advertisements according to the kind of video that users view or search for.
If the site does this, however, it could amount to a financial benefit directly
attributable to the sharing of copyrighted materials.
Those cases are currently before federal district courts, and their resolution will
greatly impact the services that social networks offer, as well as their business
models.
Section 230
Section 230 of the Communications Decency Act immunizes website from any
liability resulting from the publication of information provided by another. This
usually arises in the context of defamation, but several courts have expanded it to
cover other sorts of claims as well.
Thus, if a user posts defamatory or otherwise illegal content, Section 230 shields
the social network provider from any liability arising out of the publication. Websites
that, in whole or in part, create or develop contested information, on the other
hand, are deemed "content providers" that do not benefit from the protections of
Section 230.
A recent 9th Circuit opinion has called the section's broad coverage into question,
and created uncertainty for social networking sites that have relied on Section 230
to protect them from claims relating to the content that their users create.
That case, Fair Housing Council of San Fernando Valley v. Roommates.com, LLC,
began when two fair housing groups sued the website Roommates.com, alleging
that Roommates.com's roommate networking service violated the Fair Housing Act.
The district court found that the website qualified for Section 230 immunity and
entered judgment for the website without reaching the question of whether the site
did indeed violate the FHA. On appeal, the Ninth Circuit reversed and remanded for
a trial on the merits.
A divided Ninth Circuit panel found that the website created or developed
information on the site in two ways: First, by creating the questions that users
answered when creating their profiles. Second, by channeling or filtering the profiles
according to the answers to those questions.
The court's second justification is fairly controversial, and goes against the widely
established precedent granting a broad, robust privilege to interactive service
providers. In essence, the panel's ruling holds that, by channeling information to
users and providing search capabilities, Roommates.com has added an additional
layer of information, "meta-information" you could say, that it is at least partly
responsible for creating or developing.
The effects of this new "channeling" test could be devastating for social networking
sites, many of which operate in similar ways to Roommates.com. Sites could now
find themselves open to liability for information posted by third-parties, and this
could result in a reduction of the number of speech-related services available online
- exactly the opposite of what Congress intended when passing Section 230 in the
first place.
For example, MySpace.com attempts to restrict the ability to view underage profiles
by preventing older users from accessing them. In effect, the web site filters the
content based on answers provided during registration to ensure that only minors of
certain ages can view other profiles from that age group. This would almost
certainly qualify as meta-information under the Roommates.com decision, and
would bump MySpace out from under the protection of Section 230.
If a sexual predator give a false age on MySpace.com and then lured a victim from
the site, would MySpace then be open to claims of negligence in the publication of
the information? A federal district court in Texas recently answered that question in
the negative, but under this new decision, which carries more jurisprudential
weight, courts could swing in the opposite direction and find the web site liable.
Given that the Roommates.com decision goes against the body of established
precedent for Section 230 cases, however, it is likely that Roommates.com will ask
for an en banc review, and it is quite possible that they will prevail during that
review. Until then, however, watch for a possible deluge of plaintiffs rushing to court
in the Ninth Circuit's jurisdictions in order to sue social networking sites.
State Laws
In addition to these federal statutes, several states have enacted or proposed laws
that would create requirements for social networking sites, particularly in regards to
monitoring the presence and activities of sexual predators using the sites.
Virginia, for example, has enacted a law requiring sexual offenders to register their
email addresses and IM screen names, and allows police officer to create
mechanisms for web sites to check user information against the resulting database.
The North Carolina state senate recently passed a bill requiring that parents and
guardians register with a social networking site and verify their ages before their
children can sign up for an account. This is to counter the difficulty in verifying the
ages of minors, who usually lack credit cards or other sources of information
concerning their ages. That bill still requires approval from the North Carolina House
of Representatives.
Connecticut legislators have also proposed a bill that would require social
networking sites to verify the ages of their users and obtain parental permission for
users under 18. Under the proposed law, sites that failed to comply would be
subject to fines of $5,000 per day.
Legal Considerations for Social Networking Users
Social networking users don't enjoy any of the immunities granted to social
networking sites under the law, so they should be careful to always act
appropriately when posting messages or files to the sites.
The main areas where users can get themselves into trouble are through the
posting of defamatory content or content that infringes on intellectual property
rights.
Since no statutory immunities exist to shield users, the standard laws pertaining to
defamation and infringement apply. If a user is found to have posted defamatory
content, the user will be liable, even if the site can escape liability under Section
230. Similarly, if a user posts material that infringes on another's copyright, the user
will face liability for the infringement, despite the site's potential safe harbor under
Section 512.
The First Amendment and state constitutional free-speech provisions often come
into play in these types of defamation suits. Several of the most prominent cases
regarding user liability for material posted on social networking sites have dealt
with students suffering criminal charges or adverse consequences at their schools
as a result of allegedly defamatory, threatening or indecent messages posted on
social networking sites.
The most important of these recent student cases is a case recently decided by the
Indiana Court of Appeals, A.B. v. State. In that case, A.B., a minor, posted expletive-
filled comments on a fake MySpace page purporting to belong to A.B.'s former
middle school principal. The principal reported the site to the authorities, and A.B.
was declared a "juvenile delinquent" by a juvenile court after the judge found that
the comments constituted criminal harassment.
The Court of Appeals reversed, finding that the free-speech component of the
Indiana State Constitution protected the comments that A.B. posted. Since A.B. had
challenged the school's anti-piercing policy in her post, the court held, the comment
was political speech aimed at the principal's policies, and protected under the
Indiana Constitution.
In two other cases, Layshock v. Hermitage School District and J.S. v. Blue Mountain
School District, the students were not so lucky. In both cases, the school's
punishments against students for creating fake MySpace pages in the names of
their respective principals were upheld by federal district courts. After the Supreme
Court's decision in Frederick v. Morse - the infamous "Bong Hits 4 Jesus" case, the
decisions are unlikely to be overturned on appeal.
Also keep in mind that many states are passing laws that create obligations to
verify a user's age. Any fraud or circumvention of these requirements could have
repercussions for social networking users in addition to the usual charges of
defamation and infringement.
The following chart represents the growth of various social networking sites in India
during the past year. The dark bar represents the total number of unique visitors for
a site in Nov '09 while the lighter bar represents the same number for Nov '10.
• Facebook keeps it’s stats page updated, and boasts over 350mm users.
Facebook, ongoing
• Facebook has announced 400mm users, Feb 5, 2010.
• Infographic on Auguts 2009 Facebook stats, including usage, size, adoption
rates by Mashable, on Feb 12.
• Facebook demonstrates growth in total number of visitors (now over Yahoo,
for second place) and a high degree of attention (time on site) “Facebook has
surged past Yahoo as the number two most popular site in the U.S., drawing nearly
134 Million Unique Visitors in January, 2010. It’s been two full years since we’ve
seen a shakeup at the top – In February, 2008, Google overtook Yahoo as number
one, and never looked back.” Compete, Feb 18, 2010
• Usage of casual gaming (Farmville, mafia wars) is suggested to be by moms.
A PopCap survey reports that “The PopCap study showed that 55 percent of all
social gamers in the U.S. are women, as are almost 60 percent of those in the UK.
The average age in the U.S. is 48, which is substantially older than the 38-year-old
average in the UK, and 46 percent of American social gamers are 50 or older,
compared with just 23 percent in the UK. Only 6 percent of all social gamers are age
21 or younger.” Via GigaOm, Feb 18
• Facebook visitors to other sites are apparently more sticky at least by a few
margin points: “To offer one example, 81% of visits to CNN.com in the week to
March 6, 2010 were returning visitors while 84% of visitors to CNN.com that came
from Facebook.com were returning visitors and 72% from Google News were
returning visitors.” One could argue that these Facebook users are more engaged,
or content that is recommended to them by friends is more relevant. Hitwise, March
18
• Facebook has cross the 500mm user mark, see blog post from CEO and
founder Mark Zuckerberg, July 21, 2010
• Top countries adopting Facebook: United States, UK, Indonesia, see stats
from Royal Pingdom,
August, 2010
Myspace
• Myspace has some great benefits. The ability of being able to make your
Myspace the way you want it is awesome. Even beginning computer and
Internet users can get in and create a Myspace that matches their
personality.
• Myspace has a welcoming and easy to use interface. You can easily put all
kinds of different things on your site for family and friends to view.
• You can add video, music, and plenty of pictures to your Myspace page.
• Myspace has several different ways that you can meet new people to date,
have as friends etc. This is based towards all different age groups.
• You can create slide shows and much more to bring out your family and
friends the new pictures of the kids and your life.
• Now has 60mm users, “Over the past year, network has seen a significant
amount of growth, especially internationally. As of last December, the network had
55 million members, so its grown by 5 million in less than two months. In October,
LinkedIn’s network’s CEO, Jeff Weiner, said in the post that half of LinkedIn’s
membership is international. ” reports Techcrunch, Feb 11
Tagged
• All data told to me by Tagged directly on March 24 by ssarner at tagged.com
• Statistics: Total Registered Users: 100 Million
• Global Monthly Unique Visitors: 16 million
• USA Monthly Unique Visitors: 6 million
• Daily Users: 3.5 million
• Monthly Page Views: 7 billion
• Attention USA (comScore) Average Minutes per Visit: 12.2 – #1 social
network
• Total Monthly Minutes: 796 Million – #3 social network
• 10 million new friend connections made everyday
• Tagged “Meet Me” application produces 40 million daily page views
• Over 100,000 user generated virtual gifts, TAGS and skins available.
• Average of 75,000 – 100,000 new daily registrants
Orkut
Developed by namesake Orkut Buyokkokten, a Google software engineer, during
personal time allowed to him through his employer, Orkut is not currently a part of
Google’s product portfolio, though some day it may be.
To become an Orkut member, one has to be invited by another member. Although
feeling a little “high schoolish,” absence from Orkut doesn’t last too long.
Eventually, one of your acquaintenances is sure to join and, in turn, invite you to
join as well. Once invited, you must fill out a form where you can choose to reveal
some very detailed information about yourself: your birthday, interests, geographic
location, marital status, etc. You can even post a picture of yourself. From there,
you can ask your friends to join and maybe make some new ones too. As of now,
Orkut has no ads nor are there any dues to join. So far, the site is strictly someone’s
labor of love.
Friendster
Like with Orkut, when joining Friendster you are asked to answer some basic
questions, though Friendster’s questions are not so detailed as Orkut’s. Friendster
lives up to its name — it is more of a “meet market” for people actively seeking to
meet others rather than to simply network. Friendster does display advertisements
and sponsored links.
Yelp
• As Yelp has grown from fledgling start-up to critical mass website, serving
over 30 million visitors a month. Brainstorm tech, April 2010.
YouTube
• Find out who is creating the top YouTube videos and who is embedding them.
“The study also looked at the demographics of bloggers who embed these videos. In
general, 20-to-35-year-old bloggers embed most of the videos (57%), followed by
teenagers (20%) and bloggers over 35 (20%).” Including stats on average number
of comments, duration and other tidbits, Read Write Web, Feb 15.
Social networking has become a rage in India. More than 33 million Indians — which
is roughly 84% of the country’s total internet audience — visited social networking
sites in July this year, according to the latest figures released by comScore.com.
This makes India the seventh largest market worldwide for social networking, after
the U.S., China, Germany, Russian Federation, Brazil and the U.K.
What is more interesting is the impact the social networking sites are having on the
Internet experience. According to comScore.com, “The total Indian social
networking audience grew 43 percent in the past year, more than tripling the rate
of growth of the total Internet audience in India.”
The charge is led by Twitter and Facebook, which are the current favourites of
Indians. Orkut, which was the number one social networking site in India, has
slipped to the second position.
Facebook.com has overtaken Orkut.com and become the number one social
networking site in India.
Against this, Orkut.com could register a growth of 16% — from 17.06 million to
19.87 million during the same period.
BharatStudent.com with 4.4 million visitors climbed the podium by notching the
third spot.
Twitter.com, which was the fifth most popular social networking site, recorded an
astonishing growth of 239%.
Two Yahoo! properties — Yahoo! Pulse (3.5 million visitors) and Yahoo! Buzz (1.8
million visitors) — also made the top ten.
More than 33 million Internet users — age 15 and older in India — visited social
networking sites in July, representing 84 percent of the total Internet audience
Facebook Factsheet
About Facebook
Product
Technology
Facebook is one of the most-trafficked sites in the world and has had to build
infrastructure to support this rapid growth. The company is the largest user in the
world of memcached, an open source caching system, and has one of the largest
MySQL database clusters anywhere. The site is largely written in PHP though the
engineering team developed a way to programmatically transform PHP source code
into C++ to gain performance benefits. Facebook has built a lightweight but
powerful multi-language RPC framework that seamlessly and easily ties together
infrastructure services written in any language, running on any platform. The
company has created a custom-built search engine serving millions of queries a
day, completely distributed and entirely in-memory, with real-time updates.
Facebook relies heavily on open source software and releases large pieces of its
own software infrastructure as open source.
Platform
Facebook has always focused on giving people control over their experience so they
can express themselves freely while knowing that their information is being shared
in the way they intend. Facebook's privacy policy is TRUSTe certified, and Facebook
provides simple and powerful tools that allow people to control what information
they share and with whom they share it. More information can be found at
http://www.facebook.com/privacy/explanation.php. From its beginning, Facebook
has worked to provide a safe and trusted environment by, for example, requiring
that people use their real names. Facebook also works with online safety experts
around the world and has established a global Safety Advisory Board that it consults
with on safety issues. More information can be found at
Funding
Round one: $500,000 from Peter Thiel, Summer 2004; Round two: $12.7 million
from Accel Partners, April 2005; Round three: $27.5 million from Greylock Partners
leading the round, Meritech Capital Partners participating, and Accel Partners and
Peter Thiel increasing their investment in the company.
Board
Members: Mark Zuckerberg, Marc Andreessen, Jim Breyer, Don Graham and Peter
Thiel; Observer: David Sze; Observer: Paul Madera
Employees
2,000+
Users
Over 500 million active (users who have returned to the site in the last 30 days)
Offices
People on Facebook
Activity on Facebook
* There are over 900 million objects that people interact with (pages, groups,
events and community pages)
* Average user is connected to 80 community pages, groups and events
* Average user creates 90 pieces of content each month
* More than 30 billion pieces of content (web links, news stories, blog posts,
notes, photo albums, etc.) shared each month.
Global Reach
Platform
* Entrepreneurs and developers from more than 190 countries build with
Facebook Platform
* People on Facebook install 20 million applications every day
* Every month, more than 250 million people engage with Facebook on external
websites
* Since social plugins launched in April 2010, an average of 10,000 new websites
integrate with Facebook every day
* More than 2.5 million websites have integrated with Facebook, including over
80 of comScore's U.S. Top 100 websites and over half of comScore's Global Top 100
websites
*
Mobile
* There are more than 250 million active users currently accessing Facebook
through their mobile devices.
* People that use Facebook on their mobile devices are twice as active on
Facebook than non-mobile users.
* There are more than 200 mobile operators in 60 countries working to deploy
and promote Facebook mobile products
Timeline
2003
2004
2005
• May 26, 2005: Accel Partners invests $13 million into Facebook.
• July 19, 2005: News Corp acquires MySpace, spurring rumors about the
possible sale of Facebook to a larger media company.
• August 23, 2005: Facebook acquires Facebook.com domain for $200,000.
• September 2005: Facebook launches a high school version of the website.
2006
• 2006: A leaked cash flow statement shows that Facebook had a net loss of
$3.63 million for the 2005 fiscal year.
• March 28, 2006: A potential acquisition of Facebook is reportedly under
negotiations, for $750 million first, then later $2 billion.
• September 2006: Facebook discusses with Yahoo! about the latter possibly
acquiring the former, for $1 billion.
• September 26, 2006: Facebook is open to everyone aged 13 and over, and
with a valid email address.
2008
2009
2010
2011
• January 2011: $500 million is invested into Facebook for 1% of the company,
placing its worth at $50 billion.
Questions
In May 2010, Facebook began testing and software production.The Questions
is, an application in which users submit questions for their friends to answer.
It is expected to compete directly with services such as Yahoo! Answers.
Photos
One of the most popular applications on Facebook is the Photos application,
where users can upload albums of photos, tag friends helped by face
recognition technology, and comment on photos. According to Facebook,
• 50+ billion user photos (in July 2010)
• More than 1.5 petabytes (1.5 million gigabytes) of photo storage used
(in May 2009).
• 220 million photos added each week which take up 25 terabytes of
disk space (in May 2009).
• 3+ billion photo images served to users every day (in May 2007).
• 550,000+ images served per second during peak traffic windows (in
May 2009).
Videos
During the time that Facebook released its platform, it also released an
application of its own for sharing videos on Facebook. Users can add their
videos with the service by uploading video, adding video through Facebook
Mobile, and using a webcam recording feature. Additionally, users can "tag"
their friends in videos they add much like the way users can tag their friends
in photos, except the location of the friend in the video is not displayed.
Users also have the option of video messaging. Videos cannot be placed in
categories, whereas photos are sorted by albums.
Languages
As of March 2011, Facebook supports the following languages:
Strengths
• Rapid growth in US and international
• One of the top leading social networking sites
• One of the fastest evolving and adopted websites
• Attracts top talent from Google
• Easy use, user friendly
• Customer loyalty
• Strong financial position
• Leader in market share for industry
• Translated in over 70 languages
• Millions of users
• Acts as a virtual reality
• Fun element
• Businesses can connect to consumers
• Advertising
• Businesses can create profiles and pages for free
• Free
• #1 app on all cell phones
• Connect with old friends
• Easy-to-use features
• A way to follow friends, celebrities, companies
Weaknesses
• Security/Privacy
• Complex interface
• Becoming corporate
• Over use of advertising
• Constant change to page design
• Confusing for Businesses to use (properly market, advertrise, etc.)
• Liabilities regarding bugs and problems that users face when
operating the website
• Don't get real answers to your problems, have to figure out problems
based on FAQs
• Lack of ability to customize page
• Flash animation banners are distracting and need to be positioned
differently so it won't get in the way of the user
• Too many irrelevant and useless applications
• Facebook chat has too many glitches in its system
Opportunities
Threats
Recommendations
Search. Currently Google is the king of search. But Google cannot keep me
up to speed on the cutting edge of news quite like twitter search can. So
what if Facebook enabled search.
Not the search they have right now… but a status/activity search. A public
timeline search.
The proposed facebook search feature could be used to determine who is
training for a marathon. Sports companies could then direct targeted
messages to them for my brand’s shoes? Or perhaps people are uploading
pictures of their recent visit to Kerala (in facebook) imagine what the Kerala
travel and Tourism Department would pay to direct ads towards that user in
6 months or in 9 months as they plan their next trip. For what it’s worth,
KTDC, might pay more to advertise to that user.
Enabling the more reach/depth
Facebook should change it’s privacy settings to allow for this. Right now you
are allowed to set privacy settings for almost all modules/parts of
facebook/apps to the following choices:
• Friends of Friends
• Only Friends
• Some Friends
• Only Me
• Specific Networks
For Students
Studies and statistics show that a sizeable proportion of facebook users are
students. A huge window of opportunity opens up if facebook could tie up
with online study material site like ‘scribd’, ‘authorstream’, ‘docmaster’ etc
by which a facebook user could log in to these study materials sites and
download/refer areas of their interest.
Facebook could potentially be a safer and more private social networking site
by improving upon its security features and making these security features
user-friendly.
Questionnaire
12 To pass time
13 In the last 3 months, how many strangers have you initiated to add as friends?
1
11
Non 1- 6- 6-
- >20
e 5 10 2
15
0
Yes
N
o
When adding or accepting new friends, what criteria do you look at? . Please rank the activities
according to importance, with 1 being the most important to you
1 2 3 4 5
16 Common hobbies and interests
20 Gender
With all factors constant, that is, hobbies/number of common friends etc, are you more likely to:
(Rank from 1-3, with 1 being most likely),
whether you would add or accept a friend with:
21 No display picture
1 2
3
4 hours or more
26 Would you like the security and privacy measures of facebook to improve?
Yes
No
Can’t say
27 How much more time does Facebook allow you to interact with your friends, including
those that are separated geographically?
Littl Aver
Significant
e age
The questionnaire was mailed to 50 participants who answered it and few of the
important results have been illustrated below:-
Suggestions
• Facebook could probably improve their
security and privacy measures in the wake
of many users posting and sharing private
information and photos
• Facebook could also ensure that it doesn’t
make the same mistakes as social
networking sites that once had the largest
no. of members and get complacent on its
wave of success of being the no.1 social
networking site.
• It should constantly innovate with new
ideas and constantly take the users’
recommendations into consideration.
• A built-in search engine would prevent the
users from navigating to other search
engines and thus spend less time on
facebook.
Conclusion
Facebook has come a long way from its
launch in 2004 and has overtaken sites such
as Myspace, Orkut anf Hi5 to become the
No.1 social networking site only through its
strategy of constant innovation, wide range of
features, user-friendly applications and
constant churning out and updating to the
latest technology available.
Bibliography
• Wikipedia
• Scribd.com
• Docmaster.com
• http://www.ebizmba.com/articles/social-networking-websites
• http://social-networking-websites-review.toptenreviews.com/
• http://blog.compete.com/2009/02/09/facebook-myspace-
twitter-social-network/
• http://www.wealthvest.com/blog/sean-browne/statistics-
social-networks-will-recieve-11-of-online-ad-spending-in-
2011/
• http://www.labnol.org/india/social-sites-india/18649/
• http://www.dreamgrow.com/world-map-of-social-networks-
2010/