THE FACEBOOK EFFECT

Group 7 12P066 Akash Mittal 12P076 Bikash Dhar 12P086 Mohit Batra 12P096 Radhika Bhatter 12P106 Shrey Agarwal 12P116 Vasudev Hemachandran

1997

1999

2002

2003

2004

3 million registered users Lack of engaging activities after accepting friend requests Shut down in 2000

Founded by Jonathan Abrams Expanded upon the premise of SixDegrees More detail profiles, photo sharing, messaging, and testimonials By mid 2004 it had 7 million users

All member profiles were visible to any user Provided members with wide latitude of customizing their profiles Reduced the minimum membership age to 13 from 18 in Friendster Provided space to musical bands to promote themselves Blogs, member boards, support for embeddable widgets By end of 2006, it had 56 million unique U.S. visitors

Zuckerbrferg Cover story

Zuckerberg Cover story

People already have their friends, acquaintances, and business connections. So rather than building new connections, what we are doing is just mapping them out.
Feb, 2004

first built as an alternative to Harvards printed student directory serving about 30 college networks and 150,000 users Zuckerberg was dropped out of Harvard and moved to California to persue Facebook full time Facebook expanded to high schools and the users went up to 5.5 million Photo Sharing feature added Zuckerberg raised funds from different sources like Accel Partners and Peter Thiel Zuckerberg rejected a $1 billion acquisition deal from Yahoo No. 9 powerful person in the world

June, 2004

Dec, 2005

2006 2012

Winners dont do different thing, they do things differently

1
Restricted the profile visibility and created a very trusted environment

2
To increase revenue Zuckerberg thought out of the box and didnt rely only on advertising Entailed companies to engage with their users more profitably Entailed other businesses develop new on-line applications that used facebook Connect

3
constant development of new social functionalities News feed Open registration sale of virtual goods search deal with microsoft advertising

55 %

30 %

15 %

 A brief idea of what is going on in your social network

The user profile was changed to Mini-Feed, which displayed all of that

users recent activities People started criticizing the News-feed and Mini-feed as violations of their privacy Zuckerberg apologized and allowed people to decide for themselves what to broadcast Average minutes per visitor increased by 30% within 4 months Open registration In September Facebook opened its registration to work places and soon after it allowed anyone to sign up Monthly unique visitor count increased by about 10% per month Tripled its number of 25-34 years old monthly visitors

Facebook Platform
Launched in May, 2007 Positioning FB as a Operating system so that apps could be run on it Had various components, one for maintaining the look and feel of

Facebook in applications
Application Programming Interface(API) Query language Markup Language

One-third of growth in users because of applications(18% of total time

spent) In October 2007, Microsoft acquired 1.6% equity of Facebook for $240 million

OpenSocial Platform
Allowed 3rd party apps to be plugged into a social networking site

to retrieve info about users Relied on familiar open standards such as XML, HTML, Javascript Collectively it had more than 5 times traffic of Facebook and its platform Didn't allow data sharing across networks

Facebook Ads
In November 2007, they launched Facebook Ads It consisted of pages for companies which acted like User profiles It also featured Facebook Beacon which shared users action on a

sponsors website to that users friend on Facebook Huge outcry, and Facebook issued an apology and changed the privacy settings This happened because they assumed that users would be willing to share information about products like they shared their interaction with friends

Facebook Connect
Users can withhold info by

designating appropriate security settings Facebook Credentials could be used to log onto third-party website. Three major functions:
Connect with new sites using Facebook

profile Users can interact with FB friends in the context of 3rd party website Info on users activity can be sent back to FB for friends to see

Competitors Reactions
MySpace
Data Availability later renamed as MySpace ID Delay in implementation resulted in it not being a threat to

Facebook
Google Announced its platform Friend Connect

Hindered due to small online social network of Google in

USA No central social platform where data could be aggregated and distributed to friends Facebook
Facebook Connect continued to gain immense popularity with

advertisers getting 15-100% increase in user engagement

Twitter
Launched in 2006 as an internal service for employees at Odeo Differentiating factor was realtime interaction Allowed users to send public text updates Updates visible by following API released in 2006 Won Best Blog Award at the South in Southwest interactive festival Integrated into programming for T.V. news networks such as CNN Facebook made an unsuccessful attempt to acquire it in 2008

Facebook Redesign

Highlights Sidebar
Displays friends notable actions Made it possible to screen information and updates

Facebook Publisher
Introduced tag option Features such as sharing of status, videos, photos etc

Open stream API

Allowed developers to develop applications that incorporated FBs stream of users updates, photos, links and comments

Current Success & Future prospects

By mid 2009, Facebook emerged as the largest and fastest growing

online social network Its membership increased by 25 million in a month as while it took 3.5 years to reach the initial 25 million mark Currently has above 1 billion active users Received a $200 million investment from Digital Sky Technologies 2 options: Option 1 Charging advertisers for advanced features on the fan pages Allowed brands to access 300 potential customers Helped Facebook to tap into marketing budgets
Option 2

Helping 3rd party sites develop new online functionalities that used Facebook Connect

Latest Happenings
Protests against privacy issues Quit Facebook day on May 31, 2010 when 33,000

people quit Facebook Falling Stock Prices since IPO