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 user data without violating privacy. Facebook addresses this dilemma by offering applications and services like FriendFeed to expand its capabilities and revenue sources.

1. Facebook’s Dilemma By: Thiagoda Cunha

2. What is Facebook? Facebook is the largest social networking site in the world. It was created by Mark Zuckerberg 300 million worldwide users in 2009, now has 750 million Tools for uploading pictures, interacting, instant messaging, groups

3. Main Competitors MySpace Twitter

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

5. The Dilemma Profitability not smooth 2 billion photos, 14 million videos, and 2 billion pieces of information are shared each month Not enough revenue to maintain and transmit all this information Only 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. Applications 350,000 applications 250 applications attract 1 million users per month 60 % fail to attract 100 daily users

8. FriendFeed For people who cant obtain full capacity of internet Only basic features such as commenting, viewing photos, and accepting friend requests