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IMPACT OF SOCIAL NETWORKING SITES ON ECONOMY. Wealth creation Social networking sites generate income thanks to : Ads Applications Social Gaming creation.

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Presentation on theme: "IMPACT OF SOCIAL NETWORKING SITES ON ECONOMY. Wealth creation Social networking sites generate income thanks to : Ads Applications Social Gaming creation."— Presentation transcript:

1 IMPACT OF SOCIAL NETWORKING SITES ON ECONOMY

2 Wealth creation Social networking sites generate income thanks to : Ads Applications Social Gaming creation (Wooga, World of gaming, a German company, is the European leader ) Advergames (interactive video games provided on the website of a company so that they will appeal potential customers and make them spend more time on the website, or simply become more product aware. Facebook generates the largest part of this income, in the United States as in the rest of the world. A smaller part returns to Twitter and to the other social networks PinInterest).

3 The facebook ecosystem

4 Facebook’s worldwide turnover Forecasts Facebook’s turnover : billion dollars (in the world) Google : 38 billion dollars 6.5 billion dollars It’s rather little for a network with 1 billion worlwide members.

5 Wealth creation in the European Union 2012 : the estimate revenue generated by the activities of Facebook is $ 32 billion in the European Union. 232, 000 jobs in the European Union and in Switzerland.

6 European economic impact of Facebook

7 Jobs in France Direct jobs (100) Indirect jobs : 12, 000 jobs related to the activity on Facebook (driving traffic to an advertiser site and to brand sites that Internet users like); 2,000 jobs related to applications developed on the Net (games, entertainments, services); 7, 000 jobs generated by technology needs (terminals, bandwitdh).

8 Introduction of shares on the stockmarket (1) When? 18 th May 2012Why? To raise funds to invest Hiring additional staff Purchase of real estate Buyout of companies, eg Istagram : 1 billion dollars.

9 Introduction of shares on the stockmarket (2) : a failure  An overestimated value : the price fell sharply till August 2012  Initial public offer : $ 38  Lowest price : $18  An overestimated value : the price fell sharply till August 2012  Initial public offer : $ 38  Lowest price : $18

10 Buyout of Instagram (1) Facebook has concluded a deal to buy the start- up responsible for the Instagram photo-sharing application for smartphones. At what cost? $1billion, a very substantial amount

11 Buyout of Instagram (2) Why? An important milestone according to Zuckerberg Buying Instagram’s know-how : its application for smartphones Getting Instagram’s users Facebook wants to get a monopoly : he forbade the other social networks the access to the application.


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