The Facebook Effect

Group 3: Anbarasan R Ankit Shreshth Progyan Das Sandeep rana Shashank Shekhar

Facebook Growth
350000000 300000000 250000000 U s 200000000 e r 150000000 s 100000000 50000000 0 Oct/04 Oct/05 Oct/06 Oct/07 Oct/08 Jun/04 Jun/05 Jun/06 Jun/07 Jun/08 Feb/04 Feb/06 Feb/07 Feb/08 Feb/09

**Overtook Myspace in June 2009 to become No. 1**

Date Early 2005 May-05 Apr-06 2006 Dec-07 Jun-09

Funding $5 million seed funding -PayPal cofounder Peter Thiel

Feb/05

Jun/09

Valuation

$12.7 million-Accel Partners $100 million $27.5 million-Greylock Partners, Meritech Capital Partners and previous 2 $500 million Rejected-Acquisition offer by Yahoo $240 million-Microsoft $200 million-Digital Sky Technologies $1 billion $15 billion $10 billion

Social Networks-Value Proposition

Make personal Virtual profiles

Connect

View profiles and connecti ons

Communi cate+Sha re

Next:Why others failed , What different did Facebook do? How Facebook did it ? Revenues--?? Other than ads

Challenges/Reasons for others failing Traction-Real world Relationships virtual social network
Facebook started as a closed social network for Harvard and gradually scaled up

Privacy Add on features-photo sharing, newsfeed etc

10 billion photos-Largest photo sharing site

High quality IT and Infrastructure

And the most important Potential for generating revenues from sources other than Ads Business/Corporate pages on FB for engaging their customers Facebook Platform Facebook Connect -partnering with other businesses

 Facebook Platform, a set of tools that enable third-party developers to run full apps on Facebook (as on an operating system) Consists of Three components: API , Application programming interface Query Language Markup Language Platform tools also allowed apps to spread virally through numerous integration points, including the Users Profile, News Feed, Mini-feed and notifications By Jan 08 the numbers of apps = 13,000 and developers building Facebook apps = 100,000 Example : iLike went from 3.5 million to 5 million users with in 60 days of its Facebook launch RockYou 225% increase in the number of unique visitors

Facebook Platform - Critics

Only a small no of apps where used Developed under exclusive development agreement No functionality of apps
Mostly silly, Useless and time wasting

Financial payoffs, even for most successful applications, where barely enough to cover the applications bandwidth

Googles OpenSocial Platform

Nov 07 google built an on-line social network platform Open social Allowed Third-party applications to be plugged into a social networking site, to retrieve information about the sites' user environment. OpenSocial relied on familiar open standards such as XML, HTML and Javascript Joing the OpenSocial platfrom include MySpace, LinkedIn, Hi5 , Bebo, Ning , Flixster, Slide and RockYou Collectively, OpenSocials members had more than five times the U.S traffic of Facebook

OpenSocial - Critics
Cannot match key advantages of Facebook and its platform Did not allow data sharing across social networks Lacked viral distribution mechanism Limited ability to rapidly distribute applications through News feed, Notifications and Invitations.

Facebook ads
Goal-To drive advertising through users social relationships o Facebook Pages o Social Ads

Facebook Beacon issue

Facebook Connect
Allowed members to use their Facebook credentials to log into third party websites Allowed to keep the users Facebook ID number and the main photo indefinitely and all other data for 24 hours or as long as wished if user agrees to it Three main functionalities:
Save time by clicking on Connect with Facebook Users could interact with their Facebook friends in the context of the third party website Information on a users activities on the third party website could be sent back to Facebook

Competitive reactions

 http://www.explania.com/en/channels/techn ology/detail/what-is-twitter

Conclusion
Search integrated with Search engine giants 2009: Finally at the top Popular among investors User-advertiser engagement Reduced customer-acquisition cost for third party sites through facebook connect

Conclusion
For the youth by a youth Fan pages, hobby-groups Complete package of entertainment-Games, music, celebrity gossips, chat, video-call and many more User focused vs Industry focused Market Saturation and Competition

Facts, Figures and Trivia

Country Internet Users Facebook users 166,029,240 62,713,680 58,565,700 51,096,860 38,463,860 32,950,400 Penetration (Population) 52.9% 5.2% 30.2% 20.55% 33.45% 52.26% Penetration (internet user) 67.71% 45.78% 66.18% 92.9% 91.58% 62.49%

US India Brazil Indonesia

245,203,319 137,000,000 88,494,756 55,000,000 42,000,000 52,731,209

Mexico UK