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Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
Facebook for All
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Facebook for All

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  • Facebook is seeking avenues to grow as a company and address competitors in the continuously changing social networking landscape.
  • Points of interest:1) “Facebook helps you connect and share with the people and businesses in your life.”2) Search bar on left side allows public access to Pages.
  • Transcript

    • 1. forAll<br />George Dy, Tian Wang, Timothy Yung, Anhang Zhu<br />
    • 2. Agenda<br />Background<br />Social Media Landscape<br />Strategic Issues<br />Target Audience<br />Recommendation<br />Solutions<br />Solution 1: Interactive Facebook Pages<br />Solution 2: Extend Facebook Credits<br />Solution 3: Develop a Facebook Marketplace<br />Solution 4: Facebook Questions<br />Financial &amp; Technological Impact<br />Implementation Timeline<br />Conclusion<br />Facebook for All<br />
    • 3. Background » Recommendation » Solutions » Impact » Timeline » ConclusionSocial Media Landscape<br />Facebook General Statistics<br />400+ million users1<br />500,000+ active applications1<br />1.5+ million businesses have Facebook Pages1<br />2.7% of Global Search Search Growth2<br />Social Media Statistics<br />58.59% on Facebook3September 2009<br />30.26% on MySpace3September 2009<br />Facebook for All<br />1 http://www.facebook.com/press/info.php?statistics<br />2 http://www.insidefacebook.com/2010/04/10/facebooks-search-traffic-continues-to-grow/<br />3 http://www.hitwise.com/index.php/us/press-center/press-releases/2009/social-networking-sept-09/<br />
    • 4. Background » Recommendation » Solutions » Impact » Timeline » ConclusionStrategic Issues<br />Reinforce Facebook’s mission to give people the power to share and make the world more open and connected.<br />Facebook for All<br />
    • 5. Background » Recommendation » Solutions » Impact » Timeline » ConclusionTarget Audience<br />Cater to existing audience<br />Indirectly target older audience<br />Business is globalized<br />People all over the world have local businesses<br />E-commerce plays an increasing role in GDP<br />Exploits Facebook’s language support<br />Target independent artists and musicians<br />Facebook for All<br />
    • 6. Background » Recommendation » Solutions » Impact » Timeline » ConclusionAlternate Audiences<br />Why not target teens?<br />Why not target children?<br />Teenage demographiccontinues to increaseregardless of marketing.<br />Facebook for All<br />1 http://www.istrategylabs.com/2010/01/facebook-demographics-and-statistics-report-2010-145-growth-in-1-year/<br />
    • 7. Background » Recommendation » Solutions » Impact » Timeline » ConclusionRecommendation<br />Facebook must provide a suite of functions to attract users outside key demographics<br />Facebook must develop products that create a richer and more interactive experience for businesses<br />Facebook must utilize personal social networks to address competing services like MySpace and Yelp, and provide competing resources for independent artists and restaurants<br />Facebook for All<br />
    • 8. Background » Recommendation » Solutions » Impact » Timeline » ConclusionFour Solutions<br />Solution 1: Interactive Facebook Pages<br />Solution 2: Extend Facebook Credits<br />Solution 3: Develop a Facebook Marketplace<br />Solution 4:Facebook Questions<br />Facebook for All<br />
    • 9. Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Interactive Facebook Pages<br />Problem<br />Users without online social networks lack incentives to use Facebook<br />Facebook Pages lack user interaction and general accessibility<br />Goal<br />Establish Facebook Pages to become the de facto social profile for businesses<br />Expand Facebook Pages to serve as interactive avenues for general users, not just Facebook users<br />Facebook for All<br />
    • 10. Implementation<br />Improve general accessibility to Facebook Pages<br />Removing “login requirement” increases available audience<br />Redevelop Facebook landing page to include page search or directory browsing based on locality<br />Begin by targeting restaurants and independent artists to establish Facebook Pages as the default profile for businesses and artists<br />Create modules catered to specific page categories<br />E.g. reservations for restaurants, music store for artists<br />Results<br />Expand Facebook’s user base and retain existing users by providing a more interactive experience<br />Monetize Facebook pages by offering premium modules <br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Interactive Facebook Pages<br />
    • 11. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Front Page Mockup<br />
    • 12. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Reservations Module Mockup<br />
    • 13. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Reservation Notifications<br />
    • 14. Problem<br />Third-party developers are using Facebook’s user base and creating more competition for Facebook (e.g. iLike).<br />Facebook Credits only used for Gifts (which accounts for 30% of Facebook’s revenue)<br />Users are not aware of Facebook Credits and the potential business models are not fully exploited<br />Goal<br />Promote the use of Credits across more Facebook properties to increase trust in Facebook as a business<br />Enable Facebook to serve as a middleman to conduct transactions between its users and itself or businesses<br />Use Credits as a method to utilize Facebook’s exclusive eCommerce-style marketplace<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Extend Facebook Credits<br />
    • 15. Implementation<br />Allow users to purchase (via gift cards or electronically) Facebook Credits and use them in applications<br />Allow users to store and manage credit card information<br />Allow users to purchase goods directly via credit card or other services (e.g. PayPal, Google Checkout)<br />Develop in-house and acquire promising 3rd-party applications<br />Offer incentives to use Facebook Credits outside of the new use for purchase of tangible goods in the marketplace<br />Allow Facebook Page owners to upgrade their service for enabled access to specialized business modules<br />Results<br />Greater monetization for the use of in-house or acquired Facebook applications, increasing revenue streams<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Extend Facebook Credits<br />
    • 16. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Existing Business Model<br />
    • 17. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Potential Business Model<br />
    • 18. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2Facebook Gift Cards<br />
    • 19. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 3 Current Facebook Marketplace<br />
    • 20. Problem<br />Facebook does not exploit all the potential eCommerce opportunities involving social networks<br />Facebook lacks an avenue for vendors (e.g. with Pages) to sell products and services<br />Goal<br />Acquire Facebook Marketplace as the de facto destination for all Facebook users looking to shop within friend networks or local businesses<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 3 Develop a Facebook Marketplace<br />
    • 21. Implementation<br />Acquire Facebook Marketplace from Oodle.com<br />Aggregate all products offered by users or businesses in the Facebook Marketplace<br />Create a Facebook Marketplace shopping cart and wish list to aggregate purchases and allow sharing product lists with friends<br />E.g. Wishlists will appear on user profiles during birthdays<br />Allow users to make online transactions<br />Results<br />Increase revenue through business and featured product listings<br />Encourage the use of Facebook search for eCommerce<br />Develop Facebook into a sales intermediary between users, taking a percentage of seller fee<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 3 Develop a Facebook Marketplace<br />
    • 22. Problem<br />Facebook is lacking a strong community feel outside of personal networks<br />New users lack retention rate because questions are often left unanswered<br />Goal<br />Develop a stronger Facebook community outside of friends networks to promote higher retention of new users and provide incentives for active users<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 4Facebook Questions<br />
    • 23. Implementation<br />Create Facebook Questions to provide a community that answers new user questions about Facebook or anything trending<br />Develop a strong community feel that offers support and the promotion to Facebook Expert, which is a title that is offered to the users with highest answer count<br />Users can connect with people outside of personal networks if they are lacking friends, greater incentive to stay on Facebook<br />Results<br />Retain new users and provide stronger community incentives to increase time spent on Facebook by existing users<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 4Facebook Questions<br />
    • 24. Background » Recommendation » Solutions » Impact » Timeline » ConclusionFinancial Impact<br /> Estimated Annual Profit for Marketplace<br /> ($60BTraded2)/(90MActive Users2) = $667Traded per Active User<br />($8.7BRevenue)/($60BTraded2) = 14.5%Revenue Margin on Traded Goods<br /> ($2.4BProfit)/($60BTraded2) = 4%Profit Margin on Traded Goods<br /> Estimated active users that make at least $50k per year:<br />(400M Active Users)(67%1) = 268MPotential Marketplace Users<br />1 http://www.socialtimes.com/2010/04/demographic-of-the-7-most-popular-social-media-sites-infographic/<br />2 http://investor.ebayinc.com/<br />Facebook for All<br />
    • 25. Additional Datacenter<br /> Due to the increased use in user base and Facebook Marketplace, Facebook will be required to upscale its datacenters in preparation for the surge in traffic<br /> Even though Facebook has already begun building a 35-acre custom datacenter in Oregon that is scheduled to be available in June 2011, Facebook needs to have enough hardware until this datacenter is complete<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionTechnological Impact<br />
    • 26. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionTechnological Cost<br /> Estimated Total Cost for Development<br />Server Cost (775MUsers in June 20111)/(220MUsers in May 20092)<br /> = 352% user base growth($25Mserver cost in June 20112) * 352%4<br />= $88Mprojected server cost in June 2011<br />Operation Cost for Marketplace<br />Average: $9.38B <br /> High: $15.01B<br />Low: $1.88B<br />1 http://www.insidefacebook.com/2010/04/06/facebook-sees-solid-growth-around-the-world-in-march-2010/<br />2 http://www.facebook.com/press/info.php?timelined<br />3 http://www.salarylist.com/all-real-jobs-salary-at-facebook-inc.htm<br />4 assuming data grows parallel with user growth, compounded over 15 months<br />
    • 27. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionTechnological Cost<br /> Estimated Total Cost for Development (cont.)<br />Labor Cost <br /> ($70KAnnual salary for Software Engineers1/12 months per year)*(50Software Engineers)*(9 months)= $2.63M in labor<br />Estimated Acquisition Cost <br />1 http://www.websiteoutlook.com/<br />
    • 28. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionImplementation Timeline<br />
    • 29. Stronger Facebook community outside friend networks<br />Stronger monetization through Facebook Marketplace<br />Utilization of Facebook Credit, line of currency exclusive to Facebook users for exclusive Facebook offers<br />Pages become a default profile for business and independent artists, eliminating competition from Yelp and MySpace<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionConclusion<br />
    • 30. Questions<br />Facebook for All<br />

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