Independent study project                                                                                   FEB 2010




 ...
 Introduc%on



 The
CEO
Idea
Book



 Blog



 Ques%ons?

 Introduc%on



 The
CEO
Idea
Book



 Blog



 Ques%ons?

Dense
connec%vity

                                                      • Average
user
has
130
friends

                 ...
The trend has been outward
looking towards partnerships                           facebook


                             ...
Decentraliza%on
                User

                                           contributed

                            ...
 Introduc%on



 The
CEO
Idea
Book



 Blog



 Conclusion

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         Mone%za%on


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you
the
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may
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tell
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...
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               How
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may
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tell
you
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...
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            Features

 What is a good Italian
 restaurant in Vasant Vihar            ...
Next

Back
Back




 *PriceWaterCoopers Report
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    M...
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                                               How
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         Mone%za%on



     We
cannot
c...
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                   How
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cannot
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yet
,
but
...
What
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              How
                                 Mone%za%on



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cannot
change
her
mind
yet
,
but
...
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              How
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mind
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,
but
we
can
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you
wi...
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Plav...
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                Text
              Mone%za%on



 The
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purely
opt‐in
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What
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              Text

                                        How





 High return, High risk ve...
 Introduc%on



 The
CEO
Idea
Book



 Blog



 Ques%ons?

Introducing our latest feature – mySearch

Do we need another search engine? Isn’t search one of Internet’s oldest innovat...
 Introduc%on



 The
CEO
Idea
Book



 Blog



 Ques%ons

Facebook Case Study
Facebook Case Study
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Facebook Case Study

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This case study details product strategy for facebook on significantly increasing user base and ways to monetize the features. Includes complete feature strategy, feature mockups and financial models.

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Facebook Case Study

  1. 1. Independent study project FEB 2010 Mone%za%on
strategies
for
facebook*
 Vivek
Narayanan
 Management
student
at
the
Indian
School
of
Business,
Hyderabad
India

 * Disclaimer: All views expressed are my personal opinions only and does not relate to facebook in any way. Any reference to facebook or its employees are only for humor and to preserve the spirit of a case study.
  2. 2.  Introduc%on
  The
CEO
Idea
Book
  Blog
  Ques%ons?

  3. 3.  Introduc%on
  The
CEO
Idea
Book
  Blog
  Ques%ons?

  4. 4. Dense
connec%vity
 • Average
user
has
130
friends
 • Average
user
sends
8
friend
 requests
per
month
 • Over
65
million
ac%ve
users
with
 mobile
access
 Ac%ve
user
 par%cipa%on
 • 350
million
ac%ve
users
 • 175
million
users
logon
daily
 • Average
user
spends
55
minutes
 daily
 Rich
and
extensive
 informa%on
 Links,
photos,
events,
personal
 informa%on
 Source:
hWp://www.facebook.com/press/info.php?sta%s%cs

  5. 5. The trend has been outward looking towards partnerships facebook

 Credit
 facebook
 Move away from Connect
 easily replicable features 




facebook



 Applica%ons
 Identify unfulfilled needs that can be solved uniquely by the social networking community facebook



 mySearch
 Leverage the amazing number of active users facebook
 and connections reUnite
 
facebook








 It is now time to look inward Surveys

  6. 6. Decentraliza%on
 User
 contributed
 value Co‐crea%on
 Mone%za%on
 Experience

 Differen%a%on
 AWributes
 The
long
 
tail
effect
 Founda%on

 Remixability
 AWributes
 Emergent
systems 
 Network
effect 
Source:
Experience
AWributes:
Crucial
DNA
of
Web
2.0
by
Brandon
Schauer

  7. 7.  Introduc%on
  The
CEO
Idea
Book
  Blog
  Conclusion

  8. 8. What
 Why
 Text
 How
 Features
 Mone%za%on
 It
may
not
tell
you
the
“Answer
to
the
Ul%mate
Ques%on
of
Life,
the
Universe,
and
 Everything”
but
it
can
tell
you
“The
best
dry‐cleaner
for
your
all‐important
towel”
  Inspired
by
the
latest
in
‘Social
Search’
technology
  Leverage
networks
of
like‐minded
users
(groups,
friends)
to
provide
real‐ %me
answers
to
common
daily
ques%ons
 I am looking for a restaurant with a quiet ambience . . . What is a scenic route to drive from Chennai to Pondicherry?  The
concept
works!

   Small
number
of
concepts
launched;
Aardvark,
Google
Labs
and
socialsearch
   Aardvark
claims
about
90%
ques%ons
answered
within
5
minutes
   Aardvark
has
about
250k
unique
visitors
each
month
and
many
more
ac%ve
users

  9. 9. What
 How
 Features
 Mone%za%on
 It
may
not
tell
you
the
“Answer
to
the
Ul%mate
Ques%on
of
Life,
the
Universe,
and
 Everything”
but
it
can
tell
you
“The
best
dry‐cleaner
for
your
all‐important
towel”
   Hard
to
get
immediate
gra%fica%on
for
 Average search user “ I am simple
daily
ques%ons
 never going to find the answer   Blogs,
great
source
but
with
shortcomings
 in a million blogs!! “   Sta%c
content
from
WebPages
might
not
be
 up
to
date
   Hard
to
find
context‐specific
answers
   Near‐instant
answers
 Average blogger “ I am not   Highly
efficient
informa%on
sharing
 sure if someone even needs this stuff!! ”   Reliable
up‐to‐date
informa%on
   Content
dynamic
and
evolving
in
nature

  10. 10. What
 Why
 How
 Features
 Mone%za%on
 It
may
not
tell
you
the
“Answer
to
the
Ul%mate
Ques%on
of
Life,
the
Universe,
and
 Everything”
but
it
can
tell
you
“The
best
dry‐cleaner
for
your
all‐important
towel”
  Leverage
friends
and
groups
in
your
network
for
posing
your
ques%ons
  Users
enter
topics
of
interests
that
they
would
like
to
answer
ques%ons
on
  Ask/answer
ques%ons
via
facebook
chat,
popular
IMs
and
mobile
phone
  Chat‐like
interface
moderated
by
a
“FB
bot”
to
provide
a
real‐%me
experience
  Mine
for
addi%onal
interests
based
on
user
profiles
to
slowly
involve
more
users
 Sophis%cated
network
algorithms
to
iden%fy
the
right
people
to
pose
the
ques%ons
   Based
on
how
onen
they
have
been
contacted
   Past
answering
paWerns
   Time
of
the
day
and
frequency
preferences

  11. 11. What
 Why
 How
 Mone%za%on
 It
may
not
tell
you
the
“Answer
to
the
Ul%mate
Ques%on
of
Life,
the
Universe,
and
 Everything”
but
it
can
tell
you
“The
best
dry‐cleaner
for
your
all‐important
towel”
  Ability
to
control
how
onen
ques%ons
are
asked
  Modes
of
contact
–
SMS,
IM,
facebook
chat,
twiWer
etc..
  Increase
the
scope
of
ques%ons
answered
by
users
by
analyzing
data
paWerns
  Display
ques%ons
asked
by
the
users
on
the
profile
page
as
an
op%on
  Show
a
graphical
tree
showing
how
the
ques%ons
travel
through
one’s
network
  Restrict
the
ini%al
response
to
300
words
with
no
limit
on
subsequent
responses
  Simulate
user
interest
by
pos%ng
“Conversa%ons
of
the
day”
on
all
FB
user
pages
  Users
have
the
ability
to
rate
answers

  12. 12. What
 Why
 How
 Features
 What is a good Italian restaurant in Vasant Vihar How can I surprise my girlfriend in Delhi? on Valentine’s day?  Overall
adver%sing
revenues
in
the
US
in
Jan‐Jun
2009
in
the
US
was
$11bn 

  Search
contributed
to
47%
of
online
ad
revenues
 Time dimension adds value to advertisers: “What does the user need now? ”  Reviews
added
from
public
sites
like
Yelp,
Yahoo,
Google
or
from
friends
  Adver%sers
can
control
ad
displays
based
on
keywords
and
user
profiles
  Analy%cs
data
provides
user
demographics
and
future
context
specific
recurrence
 of
the
adver%ser’s
name
  Local
businesses
contributed
to
74%
of
FB’s
ad
revenue
  Users
have
the
op%on
of
adding
facebook
Credits
to
improve
the
response
rate

  13. 13. Next

  14. 14. Back
  15. 15. Back *PriceWaterCoopers Report
  16. 16. Back
  17. 17. What
 Why
 Text
 How
 Features
 Mone%za%on
 We
cannot
change
her
mind
yet
,
but
we
can
connect
you
with
your
high
school
sweetheart!!
 The last I heard of him was that he It would be great to plan a reunion of my was working for Lowe’s but he never high school friends, but gosh all their was regular with emails or social emails might not be up-to-date and many networking… might not even be facebook!!  Reunite
helps
people
organize
reunion
events
with
a
specific
focus
on
 increasing
aWendance
  Unique
value
proposi%on
to
find
people
who
might
not
be
ac%ve
on
 facebook
or
even
on
the
internet
  Finally
new
users
are
required
to
register
on
facebook
to
par%cipate
on
 reUnite

  18. 18. What
 How
 Features
 Mone%za%on
 We
cannot
change
her
mind
yet
,
but
we
can
connect
you
with
your
high
school
sweetheart!!
  Capitalize
on
the
over
100%
increase
in
the
25
yrs+
segment
and
build
it
further

  Inspired
by
the
red
balloon
challenge
that
was
solved
in
less
than
9
hours
  Concept
can
be
extended
to
promote
events
and
invite
people
proac%vely
based
 on
their
connec%ons
  Addi%onal
stream
to
further
increase
user
base
 But is there enough demand?* It made it very cheap for us to connect quickly with classmates and get information out to them. It was also easy to get feedback on what dates students prefer and, afterwards, on how the event went. I think that five years from now, the popularity of Facebook is going to make it an even more effective way to get people together.” – Class officer Lowell High School, SFO Final attendance was 214/600 classmates *How Facebook Is Affecting School Reunion – TIME magazine Jun 15, 2009
  19. 19. Back
  20. 20. What
 Why
 How
 Features
 Mone%za%on
 We
cannot
change
her
mind
yet
,
but
we
can
connect
you
with
your
high
school
sweetheart!!
  Leverage
the
extensive
network
of
friend
connec%ons
to
find
people;
similar
to
 friend
sugges%ons
  Analyze
trends
to
iden%fy
poten%al
connec%ons
outside
of
facebook/internet
  Make
use
of
real
life
networking
that
can
happen
through
work,
clubs,
locality
 etc..
  Op%on
to
use
publicly
available
informa%on
from
other
social
networks

  21. 21. What
 Why
 How
 Mone%za%on
 We
cannot
change
her
mind
yet
,
but
we
can
connect
you
with
your
high
school
sweetheart!!
  Minimum
of
5%
of
the
class
needs
to
signup
to
place
a
request
for
a
reunion
  reUnite
only
needs
to
know
the
ins%tu%on
name
and
gradua%on
year
  Users
can
specify
how
long
and
how
onen
to
reach
out
to
contacts
  There
will
be
a
University
op%on
(premium)
for
Ins%tu%ons
  Supplemental
tools
like
calendar,
loca%on
chooser,
event
management
tools
etc..
  “No%ce
board”
for
aWendees
to
discuss
old
jokes,
remember
nick
names
etc..
  Opt‐out
op%on
for
users
who
do
not
want
to
receive
reUnite
related
queries

  22. 22. What
 Why
 How
 Features
 We
cannot
change
her
mind
yet
,
but
we
can
connect
you
with
your
high
school
sweetheart!!
  Premium
service
for
Ins%tu%ons
like
Universi%es
or
schools
to
tap
donors
through
 reunions
  ‘Comparison
calculator’
details
the
savings
as
compared
to
mailing
out
invites
and
 also
the
poten%al
gain
of
increased
aWendance
  Universi%es
can
input
the
en%re
roll
call
of
the
corresponding
batch
to
maximize
 hit
rate
  reUnite
extends
the
search
to
external
social
networks
and
publicly
available
 informa%on
  Targeted
ads
to
be
served
around
the
theme
of
providing
event
management
 services

  Profitable
demographic
of
successful
people
looking
forward
to
a
memorable
and
 nostalgic
event

  23. 23. Back
  24. 24. Back
  25. 25. What
 Why
 Text
 How
 Mone%za%on
  
Plavorm
for
companies
to
reach
out
to
users
for
surveys
  
Surveys
can
range
from
brand
awareness,
posi%oning
and
other
market
 research
purposes
  Purely
a
commercial
ini%a%ve
with
monetary
incen%viza%on 

  Specifically
useful
for
SMEs
to
conduct
inexpensive
and
effect
research
 A New restaurant in South Bombay can proactively identify Sample demographic “Male, consumer tastes before its college educated in the launch greater Delhi region under 30 yrs of age” Volkswagen wants to conduct a country wide awareness campaign for the new Beetle launch . . .
  26. 26. What
 Text
 How
 Mone%za%on
  Rela%vely
inexpensive
way
to
reach
out
to
very
targeted
demographic
segments
  Companies
can
dynamically
increase
or
decrease
the
size
of
the
target
segment
  Very
aWrac%ve
for
SMEs
to
understand
their
local
markets
  Target
young
college
crowd
who
would
not
mind
making
extra
money
on
the
side
  Unofficial
facebook
surveys
are
already
popular
amongst
users
with
sites
such
as
 facebooksurveys.com
  Companies
can
also
test
out
poten%al
target
segments
for
star%ng
viral
marke%ng
 campaigns

  27. 27. What
 Why
 Text
 Mone%za%on
  The
service
is
a
purely
opt‐in
service
  Company
specifies
its
demographics
preference
for
survey
targets
  Company
also
specifies
the
monetary
incen%ve
per
user
  facebook
iden%fies
relevant
users
who
have
opted
in

  
Ads
for
facebook
surveys
are
presented
to
friends
of
users
who
have
opted
in
  Intelligence
is
built
in
to
carefully
target
users
with
poten%ally
similar
interests
to
 avoid
annoyance
  facebook
also
presents
broad
guidelines
for
survey
lengths
and
complexity

  28. 28. What
 Why
 Text
 How
  High return, High risk venture to be started in a phased manner  Evolve model gradually to include tiered pricing and add more survey options  High Dollar-Credits ratio provides a feeling of inflated rewards to users

  29. 29.  Introduc%on
  The
CEO
Idea
Book
  Blog
  Ques%ons?

  30. 30. Introducing our latest feature – mySearch Do we need another search engine? Isn’t search one of Internet’s oldest innovation! Are we now trying to catch up with Google!! All these are genuine questions that might arise, but we are just go out on a limb on that last one and say “Well, yes!!” mySearch is built on the upcoming technology called “social search”. It is amazing how inefficient the current search technique is and yet we do not actually even realize it. Current search works great for information that is “bookish” in nature. Like stuff that you would want to look up in an encyclopedia. How often are we after such pedantic pursuits? I am mostly just looking for common daily questions like: What is a different date idea to surprise my girlfriend for Valentine’s day? Where is a good eco-friendly dry cleaner in my neighborhood? The problem with finding answers for such questions is that they are usually too trivial for someone to put it up on the web. Blogs are usually a great place, but apart from the super-creative literary types at work (that might be an exaggeration), how many people do you know blog? mySearch is our answer to this problem. Using sophisticated social graph analysis and artificial intelligence we identify real people in your extended network who might actually know the answer to your question. It might sound like we created a supersonic rocket to get around your neighborhood, because after all we are just saying we are asking your friends for the answer . But my engineering team assures me that it is nothing short of rocket science!! Using mySearch is very simple. There are a few settings that you need to get out of the way before jumping right in. These are pretty basic stuff asking you to name a few interests that you might want to answer when someone in your extended network asks you. Then comes a few settings to figure out how to reach you and when to reach you or more importantly when not to reach you for questions. After that you can dive right in and start asking questions. For effective results, you must only ask questions that are experiential in nature. Huh! That is like saying drive at 30 mph in that red thing you call a Ferrari. Having built this monster, we are of course not going to stop you, but just be advised that if you are questions are hard to answer then you might not get an answer quickly or even not get one at all! This should not happen often enough though, in our closed beta tests our users got answers to their questions 90% of the times and that too within 5 minutes!!! You guys must be familiar with the facebook Credits feature launched last week. Well mySearch will be our first feature fully supporting Credits. You have the option of offering preset credit amounts (10,25,50) to your questions. For such questions, you should rate atleast one of answers and the the one with the highest rating wins the credit. ‘Nuf said.. Go on play around with it and let me and crew know how you are liking it.
  31. 31.  Introduc%on
  The
CEO
Idea
Book
  Blog
  Ques%ons


×