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Case Report on Facebook

Q1. Why do people use Facebook and what do they do when they are there? Facebook unlike any other social networking sites meets two primary human needs namely, 1. The need to belong and
2. The need for self-presentation.
A social networking site enables a user with the following three major functions. 1. To create user profile
2. To connect with other users
3. To view or track other users
From the above points, one can clearly understand that the visibility of a person among his fellow society members, increases as the network grows. People started using Facebook for increasing their visibility in the society. It gives a unique feel to a person, when his opinions are heard and responded to in a social networking site. This is true in the case of Facebook. Facebook has more than one billion users, i.e. approximately one-sixth of the human population. One more reason why an individual uses Facebook is the Network effect. Network effect is the effect a person has on the value of the product to others, i.e. the value of a product is dependent on number of others using it. Most of the people connected to Facebook just to stay in the network. Facebook activities:

An individual uses Facebook for various activities. He can browse profiles of his friends, join or browse Facebook groups/pages, read discussion pages, browse pictures, files, videos, can search for friends or groups, and add friend/people with similar interests. He can also interact with Facebook applications and games. One of the most used feature of Facebook is “What’s on your mind” tab, where an individual can post anything which comes to his mind, ranging from day to day activities, jokes, poems, announcements etc. All the facilities and unique features provided by Facebook to its customers, has made Facebook as the most used Social Networking service by worldwide monthly users.

Q2. Evaluate the success of advertising on Facebook
Facebook now has one of the largest internet advertisement businesses in the world, second only to Google. Facebook’s annual ad revenue growth accelerated to 36%, up from 28% last year. Facebook's average revenue per user grew to $1.25, showing a 4% increase. The main reasons for such a stupendous success are discussed below. High Relevance

One of the major strengths of Facebook over its rivals is the amount of personal data of an individual that the company has in its possession. This makes it very easy for the Facebook ad interface to select the demographic profile of an audience that the advertiser wants to target, including age, sex, location, education level and interests. Depending on their goals and the product that they are advertising, advertisers can set a targeting filter and handpick which group of people will see their ads. This makes it possible to focus on or target the people most likely to be interested in the product, amongst the 700 million worldwide Facebook users. Facebook targeting filters have the unique ability to offer the advertisers information that will help them micro-segment their customers. Advanced targeting options help narrow down the reach at the same time increase returns. Apart from the usual demographic based targeting, it is also important to note that every time a user “Likes” something on Facebook it is being added to his personal data which will in turn help advertisers deliver more targeted ads. Better Social Engagement

Facebook allows its users see what their friends like and are talking about pertaining to brands. Nowadays, Facebook Ads are also sometimes paired with social actions one’s friends have taken. For example, an ad for a tourism agency may be paired with a news story that one of your friends likes that agency’s Facebook page. Interactive

Facebook Ads are interactive; they usually include a call to action of some kind. A strong call-to-action is the gentle shove that gets people to act on your proposition. A strong call-to-action...
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