Facebook

Introduction

• Facebook is a corporation and online social networking service headquartered in Menlo Park, California, in the United States.

• Its website was launched on February 4, 2004, by Mark Zuckerberg with his Harvard College roommates and fellow students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes.

• Always changing and growing.

• Successful Business Strategies.

• Creating connect with the people.

• Awesome working environment.

Business Model

• Facebook is the leading Social Networking Site (SNS) of the World.

• Facebook mission is to “make the world more open and connected”

• Facebook helps Internet users stay connected with their friends, families, and colleagues.

• Facebook help them express themselves by sharing their opinions, ideas, photos, and activities.

• Facebook provides a number of products, free of charge & advertisements remain a key source of revenue for Facebook

• Facebook had 1.59 billion monthly active users at the end of 2015.

• Businesses can also create by making Facebook Pages to engage with interested customers

• Advertisers can engage with users based upon the information shared by users such as Age, Gender, Location, Education, Work history or specific Interests. Facebook offers advertisers an ability to include social context in their Ads

• Facebook has partnered with companies such as Netflix, Hulu, Spotify, Washington Post providing online movies, TV shows, music, and news. Their apps help users share what they are watching, listening, or reading with their friends and family.

• On 9th April 2012, Facebook announced a decision to buy Instagram for $1 Billion

• Only 13 employees

• 30 million+ Registered Users

• 1 billion+ Photos Uploaded

• 5 million+ Photos Per Day

• 575 Likes Per Second

• 81 Comments Per Second

Facebook V/s Twitter

Comparison by NumbersFacebook Statistics:

• 968 million daily active users

• 844 million mobile daily active users

• 1.49 billion monthly active users

• 1.31 billion mobile monthly active users

Twitter Statistics:

• 316 million monthly users

• 80% of active users on mobile

• 77% of users outside the U.S.

• 500 million tweets sent per day

• Facebook’s audience has been sliding away from the younger generation of millennials and toward the older demographic of 50-plus years old.

• That doesn’t mean that there aren’t any young users on Facebook, because as you can see in the graphic above, 18-29 year olds are still very active on the site.

• Twitter is primarily used by people who live in cities instead of more rural areas

• A new SaaS startup would probably do very well on Twitter, but a company in the agricultural industry might not see the same level of success on twitter

• Each Facebook post gets thousands of Likes, shares and views. Its Tweets, on the other hand, don’t get anywhere near the same amount of activity.

Growth Strategies

• Increase the user base-

Know your customer base

Make Your Product Easy to Find and Use

Don’t Assume You Know Your Customer

Keep Testing

Look at Customer Data

Focus on Customer Retention

Growth Strategies • Facebook has distinct set of strategies for its users,

marketers, and developers. For users, Facebook strategy elements include

expansion of the user community, offering new products to the users, and increasing the user engagement.

For marketers, Facebook strategy elements include increasing number of marketers, increasing spend per marketer, and improving the advertising solutions.

For developers, Facebook strategy elements include expansion of developer community, improving the development tools and APIs and improving the Facebook payment infrastructure

Growth Strategies • Differentiation in its product offerings

• Promotion strategy

• Business models- Advertising based business model Freemium business model Network effects business model.

• Facebook’s community strategy

Growth Strategies • Builds great social products to increase

engagement

• Provide users with most compelling experience

• Build engaging mobile experience

• Enable developers to build great social products using social platforms.

• Improve ad products for users and advertisers

Principles • Ownership and control of information

• Freedom to share and connect

• Fundamental equality

• Social value

• Open platforms and standards

• Fundamental service

Principles • You can make anything better

• Fast failure leads to fast learning

• Ownership is essential

• Work is personal

• Common welfare

• Transparent process

• One world

Innovations by Facebook

Through Innovation

“Facebook’s mission is to give people the power to share and make the world more open and connected”

Constant Innovations • Sponsored Groups, Facebook ads – 2006

• Pages for Business, Fan Button – 2007

• Engagement Ads – 2008

• Like Button, Language, Geo targeting – 2009

• Ads in News Feeds, Page Post Ads – 2012

• Partner Categories – 2013

• Online Games- Pirates King, Candy Crush, Clash of Clans (2013)

• One tap log in on smart phones (2014)

Constant Innovations • Offline View on mobile apps (2015)

• Facebook lite (2016)

• Live Videos (2016)

• 360 Videos (2016)

• Reaction button (2016)

• Oculus VR (Upcoming)

Massive Shift to Mobile• The average time an

adult spends on major media are:

• Radio – 1 hr, 27 min• TV – 4hrs, 11 min• Digital – 5hrs, 29

minsNearly 1 billion people use Facebook on their mobile devices every day. This presents a huge opportunity for marketers to reach a wide audience.

Core strategy: HBR Article• Encourage everyone — even those in the C-suite — to learn

by making.

• All top executives are cast as entrepreneurial thinkers, not as judges.

• Ask what’s essential and contextual.

•  Give enough of a compelling experience.

• Physically mix up your work environment on a regular basis.

• Face book's focus on keeping an office in constant flux.

Benefits of Innovation

• Creating an Internet of Things Ecosystem

• Creating Experiences People Love

• Taking advantage of mobile technology and internet.

• Facebook amazing digital success story.

Lessons Learned• Don’t be Afraid to Change

• Constantly Keep on Innovating

• See the big Picture and Research well

• Read and Reach

Lessons Learned• Keep it simple (don't overbuild)

• Give it for free (It works)

• Primary Focus should be on PRODUCT (next comes Business)

• Just roll out new features (and tweak them according to the needs)

• Create value at all possible levels

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