Facebook Case Study

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Facebook Case Report
Section – E, Group – 3B Pramila Bharti | Rahul Mandal | Deepti Singh | Ashwin Dhanotiya

Question1. Why do people use Facebook and what do they do when they are there? Today, Facebook has more than 800 million users. It focused on helping users connect and share information with each other, thus strengthening their relationships. This sharing activity allowed Facebook to become the largest photo-sharing site in the world, boasting 100 billion photos and growing by 200 million every day. The site attracted a broad range of age groups and cultures, with more than 75% of its individual users hailing from outside the U.S. Facebook users generally visit their Facebook page to browse their profiles as well as their friend profiles, so that they can stay connected with them. They also play and use other applications over internet, join or visit groups of their interest. They also visit Facebook page to search for a friend and add them. Picture browsing of friends is one of the most common tasks which facebook users do with his/her account. Some of the activities which Facebook user do on Facebook page and the amount of time they spent there are listed down below in detail: Activity Member start Page Browse Profiles (own or Friends) Internet with Applications Join or Visit Groups Browse Market Place Add a Friend Browse Pictures Search for Members and Groups Read Discussion Boards Join or Browse Networks Unique visitors 22 million 21 million 14 million 8 million 1.3 million 0.5 million 16 million 6.5 million 2.5 million 5 million Visits 298 million 262 million 88 million 41 million 2.1 million 6 million 127 million 25 million 7 million 10 million Time per visit 1.03 minutes 4.15 minutes 4.30 minutes 1.36 minutes 2.27 minutes 1.22 minutes 2.13 minutes 0.47 minutes 2.35 million 1.19 minutes

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Facebook Case Report
Question2. Evaluate the success of advertising on Facebook. Advertising is one of the primary sources of revenue for Facebook as it offers users and companies to publicize their Facebook pages for free. Facebook’s revenue was estimated to be 4.27Billion USD in 2011, of which 90% was expected to come from advertising. Hence, it can be said that the advertising strategies of Facebook have been successful. One of the challenges that Facebook overcame was the limited growth avenues provided by advertising as only 5 in every 10,000 ads were clicked on by the users. This lead to the investors to rethink about their Facebook advertising investments and indicated that they should reduce their budget. Following were the initiatives that led to the success of advertising on Facebook:  Facebook Ads: In 2007, Facebook ads consisted of: o Display Ads: Advertisers uploaded a 110 X 80 pixel graphic, a headline and a short description, all limited to certain number of characters. Facebook stated prices for ad per click and per 1000 ad impressions. Advertisers then chose their preferred method to advertise and adjusted their bid, which was then sent to Facebook for approval which if approved entered into an auction with other ads and accordingly the chosen one was displayed next to the targeted profiles. Facebook pages: Public figures, products, businesses were allowed to create custom Facebook pages for free, which increased the advertising option for the advertisers Facebook Beacon: News about user’s actions was broadcasted on sponsor’s external website to that user’s friends on Facebook. In case a user bought a product or rented a movie CD, it would be sent as an alert to his friends via the News Feed. Due to privacy issues, Beacon was later shut down.

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Social Advertising: In 2010, Facebook allowed companies to display ads exclusively to friends of people who liked that company’s Facebook page. It created awareness regarding the company and generated curiosity among the friends to look into the company and its products which are liked and may be used by their friends. This led to popularity...
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