Facebook Stanford graduate school of business May 22, 2008

  • View
    20

  • Download
    0

Embed Size (px)

DESCRIPTION

Facebook Stanford graduate school of business May 22, 2008. By: Bryan Jones. Launched in February, 2004 Created by MARK ZUCKERBERG Started in dorm room at Harvard University Took 11 months to reach 1 million users Over I billion users in 2013 with 82% outside of the U.S. and Canada. - PowerPoint PPT Presentation

Transcript

Facebook

Facebook

Stanford graduate school of businessMay 22, 2008By: Bryan JonesLaunched in February, 2004Created by MARK ZUCKERBERGStarted in dorm room at Harvard UniversityTook 11 months to reach 1 million usersOver I billion users in 2013 with 82% outside of the U.S. and CanadaTHE BEGINNING

Within 2 weeks two-thirds of Harvard was on FacebookOnly available to those with .edu emailsExpanded to Yale, Columbia, and Stanford and later DartmouthBy June 2004, 30 colleges and 150,000 usersThat summer Zuckerberg and Moskovitz went to Silicon Valley to focus on the social network

Picking up steam

SOCIAL GRAPHTies In personal relationships of individuals on a social network

Social networks have been around since the late 1990sFindmail communication toolLinkedIn business professionalsFriendster- dating website July 2003 Chris DeWolfe and Tom Anderson founded MySpace An online community that lets you meet your friends friendsJanuary 2004- Orkut launched, created by Turkish born Google software engineer. Prominent in Brazil

Social networks

A comparisonMySpace Known as dating and music discovery siteDecember 2004, raised $11 million from Redpoint VenturesOpen forum no defining divisions between various networksSome characteristics: Groups, Invitations, Events, Classifieds, Forums

Facebook Started as on-line directory for studentsNetwork was limited to the colleges they attendedPut members in charge of their own privacy settingsOnly friends and peers can see your profile

The use of Facebook is definitely aided by friends and people around you using it. But I think that its a utility and something that people use in their daily lives to look people up and find information about them In that way, maybe theres some form of networking going on. Mark ZuckerbergSocial network?

Countries with most usersUnited States - 168.8 millionBrazil - 64.6 million India - 62.6 millionIndonesia - 51.4 million Mexico - 40.2 million members2013

First three months were ran by renting servers for $85 per month2004- flurry of venture financing around social networking sitesSean Parker, co-founder of Napster, joins the teamAugust 2004 Peter Thiel, founder of PayPal, invested $500 thousand into FacebookMay, 2005 Accel Partners out of Palo Alto, invests $12.5 million at a reported $100 million valuation for the social network

financing

September 2005 Facebook enters the U.S. high school marketsCurrent college members were asked to invite high school friends to the websiteHigh school members reached 1 million users in only 7 monthsMySpace had already dominated the high school market at the timePrivacy settings was a concernHigh school students feared college admission staffs were monitoring the site for screening purposesSome students left evidence of underage drinking and illegal drug use on the site

growth

Technology used to scan site for fake profilesAuthorities warned caution to putting contact information on the siteFacebook and Zuckerberg created search utility that was more useful the more the user revealed about themselvesFacebook wanted to limit censorship to keep the flow of information freersecurity

April, 2006 Facebook allows limited corporate networks to join the siteAccenture, Amazon, Apple, EA, Gap, Intel, Intuit, Microsoft, Pepsi, PWC, Teach for AmericaGlobal expansion Targeted colleges outside the U.S.India - Indian Institute of Technology (IIT), Indian Institute of Management (IIM)German UniversitiesHigh schools in IsraelMore growth

August 2006 MySpace had 55 million users vs. Facebook with only 7.5 million usersMySpace was 5th most popular website visitedFriendster was loosing members and had only 1 million members compared to their 1.75 million in 2003Google Blogger and Google talk and videoYAHOO! del.icio.us, FlickrAOL instant messagingcompetition

Facebook measures two-thirds retention per dayOther sites measure retention per month, 25% being good Facebook is strong with photos, having somewhere between 2-3 billion photos on their website

retention

September, 2006 Facebook adds News Feeds and Mini FeedsFacebook users estimated at 9.5 millionNotifications of friends shows up on main pageTens of thousands of Facebook users were unhappy about this changeThey felt it violated their privacy to have all their friends aware of their updatesHundreds of Facebook groups protested and a boycott was plannedrevolt

Calm down. Keep breathing. We hear you

News Feed was not taken down but modifications were put in place to allow users control of went into News FeedZuckerbergs reaction

September 26, 2006 Facebook removes restrictions on registrationAnyone can now become a member by joining a geographic networkNew privacy controls were added a week earlierGave users more control of who could find and interact with them: blocking controls, hiding profiles and pictures, prevent messaging, poking and other operationsOpen to the public

Facebook turns down offer after offer Friendster, Google, Viacom, MySpace, NewsCorp (now owns MySpace), NBC, AOL, MicrosoftYAHOO! offers $1 billion for Facebook in September 2006Zuckerberg and Thiel announced that Facebook was not for sale, December 2006Focus was to continue growthNo thank you

October 2006 Social Bookmarking introduced in FacebookUsers could share interests by posting to their profile or send to a friendJanuary 2007 launches Facebook mobile pageUsers can upload photos and notes via mobile devicesFebruary 2007 Facebook introduces Virtual Gifts small icons users can send to one anotherFirst one free, $1 per icon afterwards

New features

May 2007 Facebook has 24 million users150,000 new users a day6th most visited website in the worldWebsite attracts older demographics

expanding

ANNOUNCED MAY 24, 2007OPEN TO ALL DEVELOPERSENABLING THEM TO MAKE MONEYWITHIN THEIR PAGE AND LEGALLYIn addition to Facebooks six main applications; photos, events, groups, gifts, birthdays, marketplace, users can add and delete as many apps as independent developers could makeToday F8 is a annual Facebook conference to discuss upcoming new productsF8 Platform

September 22, 2011 Timeline is unveiled at the F8 conference in San Franciscotimeline

Since the launch of F8, developers were promised that their apps would have as much priority as original appsFacebooks apps are not privilegedWithin months of launch, over 1,500 apps were createdThe platform

Facebook filed for their initial public offering on February 1, 2012Stock was valued at $38 per share, pricing the company at $104 billionRecord for trading of IPO at 460 million shares tradedStock price dropped to half of IPOSince then its up 50% to $26.85 per shareipo

The majority of Facebooks revenue comes from advertisingJust like Google, Facebook is an advertising company

Source: ZDNet

revenue

Lets say you change your profile to engaged, you will start seeing advertisements for wedding rings and dresses.

If one of your interests is tennis, then tennis advertisements will start popping up on your timeline.

Personalized advertising, same as Google or AmazonHow does advertising work on facebook?

Source: ZDNet

A. Payment from developersB. Virtual IconsC. Facebook creditsD. Music downloads

What is other revenue?

A. Payment from developersC. Facebook credits

Other = Payments and other fees (Facebook credits 30%)

What is other revenue?

Facebook leads in mobile appsSource: Comscore.com

Mafia Wars SurveyMonkey Words with Friends Spotify Draw SomethingScramble with Friends ChefVille SongPop RSS GraffitiPinterest

(Source: Powtoon)Top ten apps of 2012

Top app of 2012?

Spotify 24.4 million users per month

Top app of 2012?

Spotify 24.4 million users per month

ChefVille 21.9 million users per month

Top app of 2012?

Spotify 24.4 million users per month

ChefVille 21.9 million users per month

Pinterest 20.5 million users per month

Top app of 2012?

A. $9.5 billionB. $101 billionC. $65 BillionD. $250 BillionHow much is facebook worth?

C. $65 BillionHow much is facebook worth?

How much is mark zuckerberg worth?

How much is mark zuckerberg worth?$14 billionAnnual salary of $1 per year

How much is mark zuckerberg worth?$14 billionAnnual salary of $1 per year

Is he worth it? Discussion

Most popular developer for facebook apps?

Zynga

Bubble SafariCastlevilleHidden ChroniclesCityVilleEmpires and AliensFarmVillePioneer TrailZynga PokerWords With FriendsMafia WarsMost popular developer for facebook apps?

A. You TubeB. FacebookC. GoogleD. Yahoo!Top website visited in 2012?

A. You Tube3rdB. Facebook2ndC. Google1stD. Yahoo!4thTop website visited in 2012?

What is the value of facebook?Discuss

Can facebook keep growing?Discuss

F-commerceIntegrationTicket buyingOne stop shop

Thank you