Facebook faces a dilemma between prioritizing user privacy and increasing profits. As the largest social network with over 300 million users by 2009, Facebook relies on advertising revenue but also collects extensive user data. This raises privacy concerns as users want control over how their personal information is shared. Facebook has tried programs like Beacon to track user purchases and terms of service changes allowing unlimited data collection, generating backlash from users unhappy with the lack of transparency and control over their private information. Balancing privacy protections with profitability will be key to restoring investor confidence in Facebook's long term success and growth.

1. Facebook’s Dilemma
Profits (Theirs) vs Privacy (Your)
Talisa Salvador
Adela Tremols
Reyna Lopez
Thiara Fernandez

2. Largest social networking site in the world
Founded in 2004
300 million users by 2009
Allows users to:
Create profiles
Join networks
Connect & interact with others
Messaging
Applications and other tools

3. Its Beginnings
•Originally opened to some
college students.
•Today its one of the most
recognizable sites on the web.
•It’s simple, clean, and attractive.
•MySpace and Twitter.

4. Advertisements
Offers the unique opportunity for advertisers to reach
highly targeted audiences based on their demographic,
hobbies, personal preferences, etc.
Advertisements can be placed in features such as News
Feeds and Facebook Pages.

5. Its a very “sticky” site people spend an average of 169
minute per month on Facebook.
However, it has very high costs, because its a very
expensive site to maintain, and it continues to spend more
money than it earns.

6. Problem
Privacy
Increase revenues
In 2007, Facebook implement the
Beacon program, would track
Facebook members purchases.
In 2009, Facebook sought to change its
Terms of Service, granting Facebook
unlimited data collection.

7. Ways of earning profit
Charging for Third party applications.
Sell users information to businesses.
Suggestions
In 2007, Facebook was valued in $15 billion, today it has
dropped because of investors lack of confidence.

8. Thank you!