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The Facebook Effect

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


7 million-Accel Partners $100 million $27.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. 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 .5 million-Greylock Partners.

What different did Facebook do? •How Facebook did it ? •Revenues--?? Other than ads .Social Networks-Value Proposition Make personal Virtual profiles Connect View profiles and connecti ons Communi cate+Sha re Next:•Why others failed .

newsfeed etc 10 billion photos-Largest photo sharing site • High quality IT and Infrastructure .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.

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 .

News Feed. Application programming interface  Query Language  Markup Language • Platform tools also allowed apps to spread virally through numerous integration points. including the User’s Profile.5 million to 5 million users with in 60 days of its Facebook launch • RockYou – 225% increase in the number of unique visitors .000 and developers building Facebook apps = 100. 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 .• Facebook Platform. Mini-feed and notifications • By Jan’ 08 the numbers of apps = 13.000 • Example : • iLike – went from 3.

even for most successful applications.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. where barely enough to cover the application’s bandwidth .Facebook Platform .

Flixster. Slide and RockYou • Collectively. • OpenSocial relied on familiar open standards such as XML. Ning . to retrieve information about the sites' user environment.S traffic of Facebook . Bebo. OpenSocial’s members had more than five times the U. Hi5 . HTML and Javascript • Joing the OpenSocial platfrom include • MySpace.Google’s 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. LinkedIn.

Notifications and Invitations.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.OpenSocial . .

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 user’s 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 user’s activities on the third party website could be sent back to Facebook .

Competitive reactions .

• ology/detail/what-is-twitter .explania.


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 .

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

731.58% 62.000 88.9% 91.000.2% 30.240 62.680 58.78% 66.029.45% 52.26% Penetration (internet user) 67.Facts.700 51.860 38.55% 33.49% US India Brazil Indonesia 245.565.209 Mexico UK .096.18% 92.000.000 42.000 52.950.400 Penetration (Population) 52. Figures and Trivia Country Internet Users Facebook users 166.71% 45.9% 5.494.463.319 137.2% 20.860 32.000.713.756 55.203.