Scribd Logo
Upload

Welcome to Scribd!

  • 805 views

    B 5 Facebook

    Uploaded by

    Sankha Bhattacharya
    The document discusses different ways that Facebook monetizes its platform, including advertising, fan pages, and the Facebook platform for developers. It evaluates each approach. Specifically, it finds that while advertising faces some challenges like low click-through rates, mobile advertising in particular holds great potential for generating revenue if Facebook invests in building out its mobile advertising network and strategies. The document concludes that advertising on Facebook, with a focus on mobile, is the best option for Facebook to emphasize in seeking to monetize its platform.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    B 5 Facebook

    Uploaded by

    Sankha Bhattacharya
    805 views11 pages
    The document discusses different ways that Facebook monetizes its platform, including advertising, fan pages, and the Facebook platform for developers. It evaluates each approach. Specifically, it finds that while advertising faces some challenges like low click-through rates, mobile advertising in particular holds great potential for generating revenue if Facebook invests in building out its mobile advertising network and strategies. The document concludes that advertising on Facebook, with a focus on mobile, is the best option for Facebook to emphasize in seeking to monetize its platform.

    Original Title

    b 5 Facebook

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses different ways that Facebook monetizes its platform, including advertising, fan pages, and the Facebook platform for developers. It evaluates each approach. Specifically, it finds that while advertising faces some challenges like low click-through rates, mobile advertising in particular holds great potential for generating revenue if Facebook invests in building out its mobile advertising network and strategies. The document concludes that advertising on Facebook, with a focus on mobile, is the best option for Facebook to emphasize in seeking to monetize its platform.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    805 views11 pages

    B 5 Facebook

    Uploaded by

    Sankha Bhattacharya
    The document discusses different ways that Facebook monetizes its platform, including advertising, fan pages, and the Facebook platform for developers. It evaluates each approach. Specifically, it finds that while advertising faces some challenges like low click-through rates, mobile advertising in particular holds great potential for generating revenue if Facebook invests in building out its mobile advertising network and strategies. The document concludes that advertising on Facebook, with a focus on mobile, is the best option for Facebook to emphasize in seeking to monetize its platform.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 11

    FACEBOOK CASE

    Group-5 Section-B
    1

    1. WHY DO PEOPLE USE FACEBOOK AND WHAT DO THEY DO WHEN THEY ARE THERE?

    People use Facebook to fulfil two basic social needs:


    The need to belong The need for self-presentation

    What do they do?


    Share information with friends and take advantage of its functionalities Update their profile pages, posting pictures and other information

    Use Facebook platform to develop and build applications including games


    View profiles of other users, and communicate with each other publicly or privately

    1. WHY DO PEOPLE USE FACEBOOK AND WHAT DO THEY DO WHEN THEY ARE THERE?

    What do they do? (contd.)



    Create user groups to discuss with others who share their interests Share pictures, blog messages and videos
    Message/Chat privately/publicly Keep tabs on what friends do via their News feed Find former schoolmates/friends using the search feature

    Publish content through different applications (photos, videos, notes) Access other platforms (Flickr, Twitter) Control what strangers and friends may see and read about them
    3

    2. EVALUATE THE SUCCESS OF ADVERTISING ON FACEBOOK

    Facebook launched Facebook Ads which gave it revenue due to users clicking on the ads and the advertisers offering higher prices for frequent ad displays ( Fall 2007)

    Introduced Social Advertising(2010)- displaying ads to friends of the people who liked the company page
    Social Ads-allowed companies having Facebook Page to target friends of fans of that page(Exhibit 11) Sponsored Stories and Ads for Applications performed 2 to 10 times better than the standard Facebook Advertising Mobile Sponsored Stories received 12 times the click through rates on mobile compared to desktop Ads(Exhibit 13) Mobile sponsored Ads accounted for 14% of Advertising Revenue Promoted Posts- allowed companies to reach out to larger fan base for a fee (upto $500) (May 2012) Advertisers purchase a large banner on the Logout Screen to reach 37 million 4 users everyday for a price of $700,000(Exhibit 12) (Feb 2012)

    2. EVALUATE THE SUCCESS OF ADVERTISING ON FACEBOOK

    85% of the revenue came from advertising and it accounted for 28% of US online display ads Average users clicked only 5 out of 10000 Ads- very low click through rate Facebook had no effective mobile ad strategy despite half of users accessing it through smart phones and tablets Facebook tested its own mobile Ad network, third party apps and websites to deliver traditional mobile Ads based on users Facebook data but was sparked with Privacy concerns.(Sept. 2012) Highly successful generated 10 times more clicks than regular advertising Facebook decided not to include ads during Graph Search Rollout Big advertising companies like General Motors(GM) pulled out the entirety of its paid advertising as the management felt that $10 million did not impact their sales as promised

    3. EVALUATE THE SUCCESS OF FACEBOOK FAN


    PAGES

    Fan pages are free custom Facebook pages used to build a closer relationship with the audience and customers of:

    Companies Institutions Communities Artists, Bands and Public Figures Entertainment

    Companies use Fan Pages for:Advertising Conducting survey Promoting deals and new products

    3. EVALUATE THE SUCCESS OF FACEBOOK FAN


    PAGES

    Advantages:

    Integrated right into a users news feed, if a company updates their status, uploads photos and videos, a fan will see it and know about it When a fan promotes(likes) a page, the page is shown on his/her friends news feed as well, making it more likely for your friends to promote(like) the page Facebook insights Facebook offers great analytical tools for its fan pages Promotions on fan pages performed 2-10 times better than standard Facebook advertising

    4. EVALUATE FACEBOOK PLATFORM AND FACEBOOK FOR WEBSITES


    Facebook Platform Launched in 2007, Facebook platform was a set of tools that enabled 3rd party developers to develop applications inside the Facebook environment Increase in the user engagement and growth in sites traffic Social Gaming Facebooks platform to integrate social elements into gaming Increase in popularity of social gaming by 8% Rise in the number of users playing online games like Farmville, Cityville Facebook derived monetary benefits from outside developers Introduced Facebook Credits, a virtual currency that could be exchanged for virtual goods in applications across Facebook

    4. EVALUATE FACEBOOK PLATFORM AND FACEBOOK FOR WEBSITES


    o

    Facebook for websites Launched Open Stream API to incorporate Facebooks activity streams of users inside 3rd party application

    3 different functionalities:

    Users could save time by clicking the Connect with Facebook button and third party site pulled their personal data from their profile to establish an account Users could interact with their Facebook friends in the context of third party website A third party website could send information on a users activities on the website to Facebook for his or her friends to see

    o o o

    Introduced the Like button for websites Sites that used this saw a 30%-200% increase in registration on their sites 15%-100% increase in user engagement which is measured through reviews 9 By 2012, Facebook for websites had been integrated into 24.3% of the global web

    5. WHICH OF THE THREE OPTIONS SHOULD FACEBOOK EMPHASIZE AS IT SEEKS TO MONETIZE ?


    Advertising on Facebook: Pro:


    Innovative advertisement ideas like ads on the logout screen, thereby not disturbing users Facebook experience. Good fee of $700,000 charged
    Very popular among businesses as a wide range of consumers can be targeted at once Generates 10 times more clicks than regular advertising More impactful advertising because of posts when a friend uses an application Extremely powerful mobile advertising. With the advent of 3G and 4G technologies and with users always on the move people are rapidly shifting to using Facebook on their phones

    Cons:
    Low click rate of 0.05% Privacy concerns of individuals: People dont want to share which applications or pages they are visiting 10

    Facebook did not have enough experience in the emerging mobile data driven advertising segment

    5. WHICH OF THE THREE OPTIONS SHOULD FACEBOOK EMPHASIZE AS IT SEEKS TO MONETIZE ? Best option to invest
    o Advertising on Facebook Although Facebook had no effective mobile ad strategy, despite half of users accessing it through smart phones and tablets, but this market has immense potential A lot of revenue can be generated if Facebook invests in this market by building its mobile ad network along with maintaining its successful revenue generating corporate ads, social ads and promoted posts

    You might also like