1. Facebook By 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

5.
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.
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 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’l Lewin, 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 Facebook - Users Facebook - Marketers Company Size
300 Million +
100 million +
Target Market
The Y Generation (originally college students)
But, the fastest growing demographic is those 35 years old and older
Middle schoolers to Generation X to some seniors
All Advertisers
Product/Service
Service
Low/High Cost
Free
Low ($15 – $20 dollars per day per ad)
Global/Local
Global
About 70% of Facebook users are outside the United States

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 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
Enter your name.
Enter your address and password.
Select Male or Female.
Mark your birthday.
Click on “signup.”
Open the that you used to join Facebook.
Open the Open the Registration Confirmation 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 search (or instant messenger):
“Many of your friends may already be here. Searching your account is the fastest way to find your friends on Facebook.”
Find Using the People You May Know Tool
This tool allows you to find people you may know based on your similarities, high school, employment, college, networks and mutual friends.

25. How is Facebook Used?
By entering Midway College, Facebook was able to find people already associated with Midway College and pull up their profile pictures. I was then given an option to add each one as a friend in order to start building my network.

26. How is Facebook Used?
After uploading our avatar picture, our profile was created.
DSL for Dan, Shawneese and Lana. As you can see, creating an account is super easy and quick.

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 , 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.
Demonstrate adding a friend to the class.

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.
*demonstrate sending a message

30. Pros and Cons of Usability
Factors That Encourage Use
Factors that Discourage Use
Tabs clearly labeled
Site can appear cluttered with information decreasing user satisfaction
Most browsers supported
Animation/graphics from side ads can decrease user control
Privacy control options, security filters, and ignore features allow more user control and maximize user experience
Spam and influx of useless applications, e.g., What were you in your previous life? What color of the rainbow are you? Even when you block some applications, new get created and the process continuous—applications can decrease user productivity and be a big annoyance

31. Factors That Encourage Use
Factors that Discourage Use
Best on the net for sharing photos and events in terms of user experience and navigation
Information you post may be used against you in the future—at work, school, with your loved ones, etc.
Live chat and instant mass promotion
Opens doors for stalking opportunities
Has a reputation of being “safer than Myspace”—its biggest competitor.
No easy metric to measure how many of your Facebook interactions convert to actual sales
Ability to tag your friends in photos

32. Why is Facebook Used?

33. Over 300 million active users Half log in to Facebook every day
A Facebook user has 130 friends on average
Quick and free relay of information to gain new clients and stay connected with current customers
Fantastic Viral Marketing Source
Individuals with high Social Networking Potential are within reach
Create marketing buzzwords , increase brand awareness, and create product groups
Status updates, wall posts, pokes, tags, and gifts are way s to personalize user interaction ( communication is multi-dimensional).
Groups are a great way to target specific markets and allow users of that group to promote the brand through user interaction. For example, the Apple group is one of the largest groups; it enables group followers to be the first ones to learn about discounts and promotions.
Applications-One stop for all your marketing needs
Number 1 photo sharing application on the internet
Video uploading feature enables product promotion and instant awareness
Facebook pages are maximized through applications , which strengthen business identity
Facebook users are both active and loyal. Songs can be dedicated to users or groups, pokes are a form of gesture and gifts are another way users can express gratitude. Every time someone becomes a fan of a specific group or company, all of that user’s friends can see that he/she became a fan further evoking the interest in the brand. All of updates get broadcasted through mini-feeds.

34. Get connected through events: For example, Facebook events enable a user to enter date, time, location and even description which can be then spread to multiple users with just one click. The event feature can be utilized for product promotion start dates, special discounts, product launches, etc.
Cross integration with Twitter: Facebook is even integrated with Twitter. Updating content on Facebook auto updates the Twitter status. The integration enables more Twitter followers to check out your Facebook page and it directs your Facebook fans to your Twitter account.
Facebook is innovative. It is constantly developing and changing to keep up with the technology. Facebook has a competitive advantage as a leader in its industry when it comes to user engagement through its platform.
When compared to evites.com, three times more people are invited through Facebook for events

35. Facebook Connect: Facebook Connect Link: What is it? (Free)
If you allow your Web site to utilize the Facebook Connect application, then you will:
1. Increase traffic to your site.
2. Maximize site engagement (users can automatically find their friends upon log in and begin the engaging process).
3. Registration is no longer a hassle.
One example of a successful application.

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 to chart from www. addtoany
According to chart from Facebook is the most popular way online users share information:
24% share information through Facebook
11% share information through —a second choice
10.8% share information through Twitter—a third choice.
Clearly, Facebook is very it’s at!
Word of mouse is more important than a word of mouth nowadays. Addtoany.com is a popular supplier of widgets used on social networking sites. “Your Facebook ID quite simply will be your gateway to the digital world, “ said Zuckerburg.

38. Why is Gen Y on Facebook? Gen Y is the largest share of active Facebook Users Source: PMN Research Poll Top 5 Reasons in Order of Importance
Reason #1:obtain news or product updates
Reason #2:view promotions
Reason #3: view or download music or videos
Reason #4: share opinions
Reason #5: connect with other customers
“While 84 percent noticed ads on social networks, 74 percent say they click infrequently and 36 percent say they don’t click on ads at all.” PMN Research

39. Who is Using Facebook?

40. “The Oprah Winfrey Show is giving viewers a new way to interact”
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”
“She targets people who are engaged to be married. They put it in their Facebook profiles. There is a nice finite period of time during which the are engaged. People like photographers and other levels of service providers can target people in that life stage by very specifically targeting people who are engaged on Facebook between the age of 25 and 35. The marketing slogan that we use is 'find your customers before they search.‘ “

41. Male to Female Ratio Source: O’Reilly Research
57% of women and 42% of men use Facebook. That is the ratio.

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: Bliss Wellness Center:
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 End Thanks for Viewing