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Facebooks Dilemma
- 2. Introduction to New Social Media Impact on Traditional Media Brief History of Facebook Comparisons of Key Players Site Demo Strategies Strengths and Weaknesses Conclusion Scope
- 3. Publisher/broadcaster Passive readers/audience BROADCAS T Newspapers Magazines Television The evolution (The Management Innovation Group)1
- 4. Publisher/broadcaster Passive readers/audience INTERACTIV E Newspapers Magazines Web Video Reader-commentators Forums Comments Ratings The evolution (The Management Innovation Group)1
- 5. Passive readers/audience SOCIAL MEDIA Co-creators Collaborative Publications The evolution (The Management Innovation Group)1
- 6. Social interaction Made possible with Web 2.0 Accessible and scalable publishing techniques Exchange of user-generated content New social media…
- 8. Empowers the individual Interaction with content Individual’s need for socialisation and networking Collaboration Collective intelligence Why new social media?
- 9. Impact on traditional media Traditional media is still more widely-used “74% of adults read a paper in print or online during the past week. Newspaper readership in some markets reach upwards of 90%.” (MediaDailyNews)3
- 10. Impact on traditional media Decrease in usage of traditional media Growth in usage of new social media
- 11. Impact on traditional media Where do you get most of your national and international news? Percentage of users Year Survey conducted by Gartner Inc. (Socialtrakr)4
- 12. Impact on traditional media (eMarketer)5
- 13. News Feed
- 14. History of Facebook 11 February 2004: Mark Zuckerberg launches ‘Thefacebook’ Summer 2004: PayPal co- founder Peter Thiel invests $500,000 in Facebook 22 In less than a year after 2004, another $12.7 million was invested by venture capital group Accel 44 August 2005: Thefacebook officially changed to 33 (PhD Online)6
- 15. History of Facebook 77 October 2007: invested over $240 million in banner advertisements April 2006: Facebook mobile feature launches 55 May 2007: Facebook launches Facebook platform 66 (PhD Online)6
- 16. History of Facebook 1010 July 2010: Over 500 million people using Facebook Spring 2010: Facebook surpassed Google as the most visited website in the US 99May 2009: Digital Sky Technologies invests $200 million for preferred stock 88 (PhD Online)6
- 17. Timeline of active users (Facebook)7
- 19. Comparison of Key Players Features Wall X X X X Comments X X X Like button X X Status updates X X X URL preview X X Photo tagging X X
- 20. Comparison of Key Players Features Name tagging X X Applications X X Suggestions X X X Pictures and videos X X X X Events X X Blog X X X
- 21. Strategies Emphasis on culture of creativity and innovation New products – attract and retain users 1. Innovation
- 22. Strategies Attention to user demands and perceptions User-friendly features Can be easily imitated by competitors 2. User Orientation
- 23. As facebook is free to any users, it depends heavily on revenue. This is to cover costs of running the website. For instance, revenue for facebook for 2009 is USD 800mil, expected to rise to a billion in 2010 Basic way towards sustainability. Strategies 3. Advertisements (reuters)8
- 24. Strategies Increases content value of Facebook Prolonged usage of Facebook Increased traffic on Facebook and usage increased advertisement revenue Long-run sustainability 4. 3rd party applications
- 25. Quantity instead of quality High turnover rate Privacy issues Limitations 3rd party applications
- 26. 3rd party applications Encourage development of long- term, quality apps Regulation of app content Partnering with more well-known developers Future growth?
- 28. Strengths
- 29. Strengths Usability Streamlines flow of personal information Application Programming Interface (API) Facebook real-time search
- 30. Strengths
- 31. Weaknesses Peak period latency Individual privacy
- 34. Privacy (Facebook)7 Section 9.6 You will not directly or indirectly transfer any data you receive from us to (or use such data in connection with) any ad network, ad exchange, data broker, or other advertising related toolset, even if a user consents to that transfer or use.
- 35. Personal to Business Monthly amount of time spent: 8.3 billion hours Average number of Facebook friends: 130 Total number of active applications: 550,000+ Statistics from (Facebook)11
- 36. Personal to Business (OnlineMBA)5 (OnlineMBA)5 (PhD Online)6