Facebook is the largest social networking site with over 750 million users that provides tools for sharing photos, interacting with friends, and instant messaging. While Facebook contains a vast amount of user data that is valuable to advertisers, it faces the dilemma of how to generate sufficient revenue from advertisements to maintain its infrastructure given the large volume of user-generated content, as well as how to monetize private user information without violating privacy. Facebook addresses this dilemma by offering applications and services like FriendFeed to expand its capabilities and revenue streams.

1. Facebook’s DilemmaBy: Thiagoda Cunha

2. What is Facebook?Facebook is the largest social networking site in the world.It was created by Mark Zuckerberg300 million worldwide users in 2009, now has 750 millionTools for uploading pictures, interacting, instant messaging, groups

3. Main CompetitorsMySpaceTwitter

4. Advertiser Gold Mine Facebook contains a exponential database with information about: Demographic informationHobbiesPersonal preferences

5. The DilemmaProfitability not smooth2 billion photos, 14 million videos, and 2 billion pieces of information are shared each monthNot enough revenue to maintain and transmit all this informationOnly 15 cents per 1000 clicks; yahoo makes 8 dollars per 1000 clicks

6. The Dilemma Another dilemma they face is finding a way to turn a profit and increase revenues using the information its users voluntarily provide without violating privacy

7. Applications350,000 applications250 applications attract 1 million users per month60 % fail to attract 100 daily users

8. FriendFeedFor people who cant obtain full capacity of internetOnly basic features such as commenting, viewing photos, and accepting friend requests