SOCIAL NETWORKING AND SOCIAL MEDIA MARKETING THE FACEBOOK PHENOMENON

SOCIAL MEDIA AND NETWORKING Social Media are the platforms that enable the interactive web by engaging users to participate in, comment on and create content as means of communicating with their social graph, other users and the public. Includes such sites as YouTube, Twitter, Pinterest, GooglePlus, LinkedIn, and Facebook.

WHAT DO SOCIAL NETWORKING SITES PROVIDE? Wide variety of content formats Interaction between platforms Offers unlimited levels of interaction and engagement from users Viral capabilities and increased information distribution Provides one-to-one, one-to-many, and many-to-many communications Real times communication and opinions Easily accessible on a large amount of devices

SOCIAL MEDIA FOR BUSINESS FIRMS TODAY -Increased visibility to customers and consumers -An interactive platform for business to communicate with their target demographic -Viral ability to share and recommend products and services -Free platform for discussion, customer feedback and provide promotional opportunities for companies

-How many people in our class are participating in social media? -If you do, what networks and media outlets do you use? -And what do you use them for?

Mission Facebook's mission is to give people the power to share and make the world more open and connected. Company Overview Millions of people use Facebook everyday to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet.

BACKGROUND -February of Facebook was founded by Mark Zuckerburg when he was nineteen-year-old attending Harvard University in -Mid-2004, Zuckerburg incorporated the business and named Sean Parker, the mind behind Napster, as president. Headquarters were moved to Palo Alto, California. -October of 2007: Microsoft purchased a 1.6% share of Facebook for $240 million : International headquarters are established in Dublin, Ireland : Facebook moves to Menlo Park, California to the old Sun Microsystems Campus where it is currently located today. It is currently the largest social network in the world, boasting more than four hundred million members and usage rates that would be the envy of most media companies.

EXECUTIVE MANAGEMENT Mark Zuckerberg Founder, Chairman and Chief Executive Officer Sheryl Sandberg Chief Operating Officer David Ebersman Chief Financial Officer

FACEBOOK USER STATISTICS -901 million monthly active users at the end of March Approximately 80% of our monthly active users are outside the U.S. and Canada million daily active users on average in March million monthly active users who used Facebook mobile products in March 2012, and more than 500 million mobile monthly active users as of April 20, 2012.

TECHNOLOGY: HOW DOES FACEBOOK WORK? Software System Programming Language Linux (Operating System) C++ Apache (Web server) Java MySQL (Relational database management system) Python PHP (Server-side programming environment) Erland Memcache (general-purpose distributed memory caching system )

EVOLUTION OF FACEBOOK PROFILE

FACEBOOK’S TAKE OVER OF THE INTERNET CompetitorServiceFacebook Product Google’s PicasaPhoto SharingFacebook Photo and Sharing Gmail, Hotmail, mail DropBoxFile SharingFacebook Files NetflixOnline Video RentalsNetflix Rentals on Facebook Craigslist, News PaperFree Classified ListingsMarket Place Gaming WebsitesScrabble, Words with FriendsApps Content SharingDigg.com and Del.icio.usNews Feed Groupon, LivingSocialDaily DealsFacebook Deals NewsBreaking newsNewsroom PandoraMusic SharingFacebook Music

SOLUTIONS FOR BUSINESSES -Discussion Boards -Events -Information -Notes -Photos -Reviews -Video -Wall

OPPORTUNITIES -IPO -Consumer Space -Advertising -The “Media”

FACEBOOK’S IPO: ALL YOU NEED TO KNOW! (Video) Also "Everything you need to know about the Facebook IPO (FAQ)"

PRIVACY ISSUES- BIG MISTAKES BY FACEBOOK Beacon: Facebook’s advertisement system that sent data from external websites to Facebook, for the purpose of targeted advertisements. Why it flopped? - Opt out system. Not opt in. - Distributed user information without consent. - “Facebook ruins Christmas” Facebook donates $9.5 million to charities working to protect user privacy. Facebook did not consider the issue and implications that could arise by sharing private information to the masses. Quick roll out of Beacon caused significant damage to reputation, future funding for new products from consumer product companies less likely.

PRIVACY: BIG MISTAKES BY FACEBOOK Terms of Service Debacle “We can do anything we want with your content, forever,” even if a user deletes their account and leaves the service.” Huge uproar from users. Modification to the Terms of Service were not approved or reviewed by users.

BUSINESS CHALLENGES & PROBLEMS How will Facebook maintain the perceived overall value and sustaining profits? Will they be able develop an evolving advertising model? Discover new avenues to make income? What are the new ways for them to identify new companies and business opportunities? What ways will the company bend and manipulate the rules surrounding user privacy to turn a profit for the company? How will they find more cost effective ways for turning their social real estate into a fund generator in the future?

MULTIPLE CHOICE What is at the heart of Facebook’s appeal to users? a.Social Graph b.LAMPS platform c.Facebook d.Easy access to business information

MULTIPLE CHOICE Which firm or firms have tried to acquire Facebook from Mark Zuckerberg? a.Viacom b.Google c.Microsoft d.Yahoo! e.A & D f.A & C