Facebook Dilemma

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PresentedBy:-
Rashmi Sinha 40
facebookProfits(Theirs) versus Privacy(Yours))
rash@gmail.com
@urRisk*****
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I’m worth $13.5
Billion!
Info:
Lives in Palo Alto,
California
Knows English,
Mandarin Chinese,
From Dobbs Ferry,
New York
Born on May 14, 1984
http://www.facebook.
com/zuck
The vision The initial days
The growth
period
Issues &
Concerns
Facebook
Evolution

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FACEBOOK YESTERDAY, TODAY & TOMORROW……

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 More than 150,000 new users signing up daily
 More than 800 million photos uploaded to the site
 each month
 More than 5 million videos uploaded each month
 More than 20 million pieces of content (web links,
news
 stories, blog posts, notes, photos, etc.) shared each
 month
 More than 2 million events created each month
 More than 20 million active user
 groups exist on the site
TRENDS

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For advertisers Facebook represents a gold
mine of opportunity because of the information
the site has gathered and because of the richness
of the social networking environment.
 It is also an extremely “sticky site”.
 Despite these advantages, Facebook has high
maintenance costs(servers and networking).
Attempts to sell online ads on Facebook and
other networking sites have not been successful.

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Privacy Issues:
Users contribute most of their information to
Facebook willingly, but do they want to share
that information?
In December 2007, Facebook CEO Mark
Zuckerberg announced the Beacon Program. This
would track what Facebook members purchased
at their corporate sites.
But then, why some Facebook users still
continue to use the third-party quiz applications?
Facebook has also come under fire for its
handling situation of removing profiles from the
site.

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 “Facebook Changes News Feed After Privacy Panic”
 “Facebook’s Beacon More Intrusive Than Previously
Thought”
 “Facebook’s ‘Like This’ Button is Tracking You”
 “Are Facebook Applications A Privacy Disaster in the
Making?”
 “Facebook’s Plan to Automatically Share Your Data
With Sites You Never Signed Up For”
• Privacy Related Facts..........

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 Facebook Platform, launched in May 2007, opened up the
site to serve as a “platform” for applications that are
independently developed by third parties.
 On the flip side, others believe Facebook’s own popularity
will injure its chances to attract advertisers to the site.
 Facebook’s purchase of FriendFeed and its rollout of
Facebook Lite variant suggest its desire to offer an
alternative of Twitter.
Steps to profitability:

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 E-commerce can be more interactive with Facebook users
since information can be gathered from a number of
different places, and it can be personalized to meet the
needs of everyone.
 Users can interchange ideas, not just receive orders. So in
the case of E-commerce people not only can buy products
or services on the Internet but they can receive feedback
from other people that have bought it before. In
Facebook’s case people can comment over each other
profiles, leave videos, texts and other things.
Ispire by Phyzok
(http://www.facebook.com/pages/Ispi
re-by-Phyzok/255409734470667)
A page created by the
director of the
company. Nikita, a
summer intern helped
in promoting the
company thereby
building up relations
as well as getting her
future career fixed.
Role of e-commerce and Web 2.0 technologies
in Facebook’s widespread popularity?

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Examples of Web
2.0 include social
networking
sites, blogs, wikis,
Folksonomies ,
video sharing sites,
Hosted
services, Web
applications,
and mashups

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 Some of the programs that have affected Facebook’s private
policies are:
 The Beacon Program, that would track what Facebook
members purchased at their corporate sites, send the
information to Facebook, who would then share that
information with their friends without asking permission.
 Change of information retention and collection policy. But,
in August 2009, Facebook announced a simplification of its
privacy policy. Users could easily be able to choose
between account retention and deactivation.
 Also, Facebook Platform, launched in 2007, opened up the
site to serve as “platform” for applications that are
independently created by third parties.
• Weaknesses of Facebook’s privacy policies and
features. What people, organization, and technology
factors have contributed to those weaknesses

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 At the end of the day, we, the users, have been
responsible for giving our personal information.
Facebook’s environment is very engaging, and gives
developers unparalleled exposure for their
applications.
These ads usually
appears on the right
hand side of a
facebook page.
The display of ads are
not mere by chance
but involves profiling
of active member.
Most of the time click
on ad ends up with
more ads of similar
kind on home page.
• Continues….

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• FACEBOOK POSITION BEFORE LAUNCH OF NEWS
FEED
 $800 million selling offer for such a young company as
facebook
 Offer expected to rise upto $1 billion
 Open registration for public
 Internal pressure for selling the company
 Failure of news feed would shatter the company
• FACEBOOK NEWS FEED

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 Announced on September 6, 2006
 Appears on every user's homepage and highlights
information - each item named “story”
 Apparently Facebook’s users hated news feed
 Too easy for other people to track activities
 “Students Against Facebook News Feed” anti-news feed
group
 Primary objection: shared too much information
• NEWSFEED –LAUNCH AND
INITIAL REACTION

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 Mark Zuckerberg issued an apology for the site's failure
to include appropriate customizable privacy features
within a few days
 Open issue discussion-Free Flow of Information on the
Internet
 Launched new privacy settings on Sept. 8
 Never considered turning news feed off
 Faced the criticism but understood the irony of the
situation
 Immediate change in privacy settings
• IMMEDIATE COMPANY’S RESPONSE

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Positive indicators:
• It’s one of the largest social networking sites in the
world and is growing
• Facebook’s interface is simplistic and clean and tends to
attract those looking for a crisp, more structured social
networking environment
• It represents a unique opportunity for advertisers to
reach highly targeted audiences based on their
demographic information and narrowly specified criteria
• It represents a gold mine of opportunity because of the
information the site has gathered and because of the
richness of the social networking environment.
• Part of its status as a first-mover in the social networking
marketplace helps attract more users
Facebook Ads
provides CM
Photographic the
ability to target their
exact demographic.
Example :
24 – 30 years old
women whose
relationship status on
Facebook indicated
that they were
engaged.
• Does Facebook have a viable business model?

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• It has created large numbers of hostile users because of
its privacy violations
• Facebook’s own popularity will injure its chances to
attract advertisers to its site, claiming that the engaging
and immersive environment that draws visitors to the
site makes users less likely to click on ads
• Skeptics also believe that the current application
system, where applications tend to support one another
via advertising through other applications without the
aid of extensive outside advertising, is an unsustainable
model over the long term. So far, only 200 Facebook
applications have attracted more than 10,000 users per
day and 60 percent failed to attract even 100 daily
users
• It remains to be seen whether or not the company can
turn its heavy site traffic and trove of personal
information into new revenue streams
G5 found success
setting up a series of
Facebook Ad
campaigns targeted to
college students at 21
campuses prior to
Summer break for
StorQuest self service
storage facilities. Real-
time suggested bids
for our auction-based
system provided
guidance that enabled
G5 to hone ad
effectiveness based on
their various targeting
filters (age, college
level and location).
• Negative indicators:

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