Mark Zuckerberg, the CEO and founder of Facebook, launch Facebook on 2004. On Sep, 09 Facebook had 300 million users. The U.S. Facebook is now the largest global on-line social network in the world, focused on helping users strengthen their off-line relationships.
Social Networking History
Social networking sites had emerged in the late 1990s as web-based services that allowed users to construct personal profiles, connect with other users, view their profiles and connections, communicate and share personal information.
• Geocities offered user profiles and instant messaging app. with private "buddy lists.
• The site of SixDegrees was not success since users complained that not enough of their friends were members and there was not much to do after accepting friend requests.
• Friendster describe as "a way to meet people online through your friends while the main target is a way to find dates.
• MySpace provided members with wide latitude in customizing their profiles made it easy for users to express their personalities and to make new online friendships
Facebook’s Early Years
Facebook start as a fast and simple interface similar to other social network sites. However, Facebook differed from most social networking sites in that it initially restricted membership to those with an ".edu" email. Facebook restricted profile visibility to members of the same university so it could create a very trusted environment in which to share information. By June 2004; Facebook was serving about 30 college networks and 150,000 users through online invitations and word-of-mouth
News Feed
It is a timeline on the Facebook homepage that displayed the recent activities of one's friends.
Mini-Feed
The user profile was also changed to include Mini-Feed, which displayed all of that user's recent activities. Intend to use to dig for information on a daily basis, nicely reorganized and summarized so people can learn about the people they care about."
New feed’s problem
Despite the perceived usefulness of these features, some users who criticized the News Feed and the Mini-Feed as violations of their privacy as a solution, the company introduced privacy controls for the feeds also put in the privacy features that allow people to decide for themselves what gets broadcast .
Open Registration
In Sep 2006, Facebook opened its registration to include work places, and shortly afterwards, it began allowing anyone to sign up. In the following eight months, Facebook's monthly unique visitor count increased by about 10% per month. However, even with all this growth, Facebook still had only 40% of MySpace's unique visitors
Facebook Platform
Facebook change the strategy to be the operation system that others can run full applications, so in May 2007, company introduced Facebook Platform. Facebook Platform has three components.
1. Application programming interface (API).
2. Query language
3. Markup language.
API and query language were like an application data access to users’ activity, profile and the relationship data. Developers used the markup language to create application form that still has the feeling and looking of the Facebook. Although Facebook allowed the development application to keep all revenue from advertising through the applications, by providing a channel for creating business opportunities Facebook gained more research and development budget up to $250 million dollars.
There were still criticisms at the time.
1) Most of the applications had been developed under an agreement with Facebook before it launched the platform.
2) Criticisms about the contents and usages of applications
3) Financial payoffs, the applications’ bandwidth costs were too high and were barely be covered.
Google’s OpenSocial Platform
In November 2007, Google had created On-line Social Network Platform, called OpenSocial such as XML, HTML and Javascript. MySpace, LinkedIn, Hi5, Bebo, Ning, Flixster, Slide and RockYou all joined the platform. OpenSocial didn’t allow information sharing between the Social Network; it lacked of viral distribution mechanisms and limited its ability to distribute applications through NewsFeed, Notifications and Invitations.
Facebook Ads
Facebook ads are the advertising tools invent by Facebook. That aim to advertise throughout the user social relationship. Facebook ads consist of Facebook pages and social ads. Facebook page is the free pages available for businesses, brands, products, artists, and public figures. Social Ads will advertise Facebook pages to target that the company will choose and show interact of facebook user to that page.
Facebook Connect
In May2008, Facebook had started translating site to many languages to support customer all over the world. Facebook also launched 2nd platform called Facebook Connect which allow facebook members log onto third-party websites and bring their social network with them. This function offered 3 main functionalities to third-party website.
1. Click “Connect with Facebook” button and their personal data would be retrieved from Facebook profile to create an account here.
2. Once logged in, users can interact with their Facebook friends in here.
3. Information on users. Activities in third-party website could be sent back to Facebook for their friends to see.
Competitive Reactions
• MySpace
In May 2008, MySpace launched platform called “Data Availability” and renamed to MySpaceID.
• Google
Google launched platform called “Friend Connect” that could not provide network data to power social applications to third-party sites and there was no central social network. Google still continued to improve upon Google Friend Connect. They made it easier to implement into websites and added several new features: poll users of data and display ads.
Facebook Business Model
Revenue Model
1. Applications
Developers can build a wide variety of Facebook applications including games, quizzes, giveaways, coupons, competitions, gifts and charitable fundraising.
2. Virtual Money (Credits)
An online currency unique to Facebook users that member purchase 10 credits for a dollar, then use virtual money to purchase online goods and play games.
3. Advertisements
• CPC (Cost Per Click) is also known as Pay per click (PPC). Advertisers pay each time a user clicks on their listing and is redirected to their website
• CPM (Cost Per Mille) is where advertisers pay for exposure of their message to a specific audience. "Per mille" means per thousand impressions.
Competing with real time
Facebook face new competitor is twitter which is served a service in real time. Facebook publisher allow Facebook user easily write their thoughts, share links, photo and video. Other features such as highlight sidebars though display friend notable user actions. Tags allow user to tag their friends in user status update by place @ in front of their friend name. Allow developer to develop application that incorporate facebook stream of user update, links and photo. Facebook also upgrade its search engine by user can search for their friends’ real time updates and give a choice to share user facebook update with everyone.
Next step
First, focus on helping advertisers engage with users more profitably. Second, Allow third-party sites develop new online functionalities that used Facebook Connect.
Three things to consider before do marketing in Facebook
1. Know Your Target market – 77% of the Facebook user are under 34 year old if your target is older , you are wasting your time
2. Define your strategy – Clear guideline must be create before
a. Setup a quantitative business goal – eg. Expand business network how many% and by when or how many product will be sold and by when.
b. Track of your time – Hours your company spend on social media
c. List out to do list – that you would have been doing had you not been working on social network (opportunity cost)
3. Evaluate – To choose the method to evaluate the effectiveness of marketing on Facebook. For example, calculate ROI.
What to measure ROI?
• Visitor interactions with your Facebook tabs and apps.
• Activities generated by your Facebook advertising.
• How much traffic your Facebook campaign is generating and where the traffic is coming from?
How to measure ROI?
• Set expected target such as number of visitors, numbers of friends of friends at the period of time.
• Facebook Analytics tools-Facebook Insights.
ROI indicator
• Cost per lead = total cost/number of lead
And then you compare it with sales, you will know your return on social media investments.
Facebook tips
1. Promote the page
• Suggest to friends
• Use the Share Button - sharing some interesting content to your personal profile such as an exciting news, recent changes and special incentives
• Cross-promote via your social media and online outlets: on your web site, blog, newsletter, twitter page, or in e-mail campaigns.
2. Update Regularly - Beside a quality content and engagement with your fans, your page should include fresh and compelling content to attract and keep people coming back
3. Offer Exclusive Content
- Offering special deals on your Facebook page is a great way to attract fans, increase your page’s relevancy and keep fans coming back to your page.
4. Being social - The most important element of a successful Fan Page is interaction.
No one wants to join a group where they have no voice. They want to interact with and feel like they are being listened to Fans page increase rapidly because it is interesting issue.
