1. MI021/CS021: Computers in Management Oct. 14, 2011 Facebook Case Prof. John Gallaugher www.gallaugher.com written case available at www.gallaugher.com/chapters Copyright ©1997-2010 John M. Gallaugher, Ph.D. All rights reserved Note: not all images cleared for commercial copyright.

2. Issues Covered Background on Facebook –Competitive advantages –Facebook vs. the Competition Key efforts –Feeds –Platform –Beacon –Facebook as The Web’s Plumbing Advertising challenges & opportunities

3. 800+ million users solidly profitable avg. time online ~55 mins.

4. “We Want In!”

5. Source: http://www.emarketer.com/Article.aspx?R=1008598

6. Feeds = Ebola for Data Flows Organic or Earned Ads : Free ads that come from people promoting products on their own. Organic or Earned Ads : Free ads that come from people promoting products on their own.

7. Facebook Encroaches All Source: TechCrunch: http://www.techcrunch.com/2008/09/05/googles-picasa-becomes-more-flickr-like-adds-new-ways-to-explore-interesting-public-photos/

8. Bye-bye Digg

9. Facebook - Apps Platform

10. Copyright / Scrabulous

12. Beacon Once every 100 years, the way that media works fundamentally changes

13. Beacon Busted       

14. Content Adjacency

15. 15 Hunt vs. Hike Click-through rates –Google: 2% –Facebook:.04% CPM –TechTarget: as much as $100 and above –Technology Review: $70 –Mashable: $7 - $33 –Facebook (via Lookery): 13¢ –Facebook (targeted ads): 15¢ 15

16. A Volume Biz: Lots of Impressions at Less Revenue Sources: http://news.cnet.com/8301-13577_3-20004779-36.html?part=rss&subj=news&tag=2547-1_3-0-20 http://online.wsj.com/article/SB10001424052748704436004576297310274876624.html#ixzz1LCFVtMRC BUT all this with NO ad network! (Google, Microsoft, Yahoo, AOL also run ads on other sites) BUT all this with NO ad network! (Google, Microsoft, Yahoo, AOL also run ads on other sites)

17. A GLOOMY FORECAST Can social-networking sites continue to make significant inroads into the U.S. online advertising market? The outlook is uncertain. A shaky economy and setbacks in ­targeted-advertising initiatives have caused leading online marketing research firm eMarketer to project more modest revenue growth for social-networking sites over the next four years than it had previously predicted.

18. THE GLOBAL VIEW Social networking is a global phenomenon, and reaching users outside the United States will become increasingly important as advertising dollars flow to Western Europe, Asia, and beyond. Source eMarketer / Technology Review

19. Revenue Per Unique Visitor Source: Business Insider March 18, 2010

20. Better Targeting

21. Facebook Knows Where I Am & What I Do

23. Which Ads are Targeted at You?

24. You are Part of the Targeting Organic or Earned Ads : Free ads that come from people promoting products on their own. Organic or Earned Ads : Free ads that come from people promoting products on their own.

25. Value?

26. Engagement Ads

29. Like

30. Facebook Integration

33. Auto Login Catalyzes Signup / Experimentation

34. Partners Ask Permission

35. CNN & Facebook Feed Integration

36. Buy, Opt-in, Post to Feed

37. Viral Invites

38. Viral Giving

39. APIs & the Free Rider Problem

40. Mobile

41. What Happens in Vegas Stays on Facebook (& YouTube, Flickr, Twitter,...) Source: CNet, Wonkette, and CBS Evening News, quote from Socialnomics

42. http://www.theatlantic.com/technology/archive/2011/10/what-you-shouldnt-post-on-your-facebook-page-if-you-want-a-job/246093/