Facebook Business Model

Topics: Marketing, Facebook, Social network Pages: 3 (838 words) Published: May 16, 2013
F 1) FACEBOOK’s business model:
It turned to be that facebook doesn’t have a certain business model to generate revenue, since facebook was launched at the beginning as a social site where people can meet and become friends, but never thought to have a profit out of these relationships built. But lately facebook owners started thinking about creating a business model to have a revenue out of the site’s functions, and decided to include the old fashion online business model which is creating display ads on their pages to turn the normal users of the site to purchasers through these ads of other companies or online hot offers and discounts, so here we can see that facebook is using a direct marketing mean of communication and generating revenues which is display ads. The latest updates of facebook has shown that they are using every space in their page for display ads even in the home page and if you had Facebook connect plug-ins installed in your computer, you will have even display ads generated by facebook in other pages that you’re using, but still researchers and business experts believes that the company that worth 100 billion dollars can worth a lot more by generating an appropriate business model such as Google’s business model which make them earn money through any search made by the user to buy or look for deals without disturbing the users experience with ads and filling his pages with unneeded display ads. 2) Features of Social Networking:

the reasons why social networking has a big impact on the big or small companies, is the huge increase of social networking users which makes it easier to marketers to reach their customers and to understand their needs through the creation of their official pages, and also to rate the impact of their brands on people’s mind by calculating the interaction of these customers especially that the users between 20 and 29 are using social networking more than 10 hours a week which gives these companies the...
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