V) Facebook (Started In 2004)

. 1.5b. + members (including 50% of all Americans); with the number of active mobile users is 1.3+ b ; in August 2015, 1 b. people used Facebook in one day; with 1 in 7 of the world's population using Facebook to connect with other people

. 4m.+ businesses use it

. 750m.+ visit it every day (10 times what its predecessor MySpace had at its peak)

. 75% of visits from mobile phones

. Members spend up to ? hour each session

. Around 1/3 of members visiting multiple sites daily

. 10m.+ new photos every hour

. People press a "like" button around 3b. times daily (eg 34 m "like" Coke-Cola)

. Most members have 130+ direct contacts

.Instragram (part of Facebook) has 130 m customers

Growth has slowed in western economies especially amongst the young adult demographics, eg in USA, 6.5 m+ of 13 to 25 years old have left in the last 2 years, preferring Apps.

In Feb 2014, buys WhatApp (US$ 16 b+), a text-messaging service, to protect its turf. WhatApp has 450m users (fastest growing membership of any social network by a factor of 2). Potential to send 7t messages annually

Fastest increase in users is

- over 50s age group

- Asia (73% in 2 years)

- Latin America, Middle East & Africa (69% in 2 years)

The USA has 16% of Facebook's user base; it provides around 50% of the firm's revenue

. Facebook aims to provide affordable Internet access to 2/3 of the world that are unconnected

Facebook

"...it's the default way to communicate with friends across the world"a popular marketing mechanism both small and large companies, and a rallying cry and economies..."

James Hutchinson, 2014

Rapid growth in mobile devices is shown by Facebook where 85% of its users use a mobile (2014). This suggests the end of the era of desktop online advertising.
Facebook has collected and analysed a huge amount of information about individual's tastes, beliefs, interests, photos and conversation from a very wide section of the community that is worth a lot to businesses and advertisers. Thus its focus has switched from user benefits to advertising benefits, ie Facebook is changing from a company centred around Facebook.com to a portfolio of apps and digital products.

In addition to buying organisations like

- Instagram (online photo & video service)

- WhatsApp ( Mobile messaging service)

- Oculus (virtual reality), etc.,

It is developing new app-like products in their research division (Creative Labs) like Slingshot (a look-alike Snapchat - see below), Paper (a social media newspaper which curates articles and photos into categories users choose), etc. Its in-house development is having limited success

Other activities include

- developing Facebook Marketplace which is expected to be many times bigger than Ebay

- developing Facebook Live (live streaming)

- developing Facebook advertising

- purchased Masquerade (similar to SnapChat)

- established Facebook groups as a great way to network, collaborate, follow trends, etc

Some stats (2017)

- quarterly revenue ($US 7 b.)

- demographic coverage (50% of people on the net access Facebook)

- 2 b. monthly active Facebook users

- own in Instagram (400 m active monthly users

- established Facebook Stories that now has 1 b. daily users

- Facebook Video becoming more popular than Youtube

(source: Business Seminar Australian, 2017a)

Facebook is looking to pps as to win back teenagers who have turned away from Facebook in large numbers owing to their parents' presence and the perception that Facebook is no longer cool.

Snapchat (photo messaging app where messages disappear after 10 seconds); in 2014, Facebook unsuccessfully bid US$ 3 billion for it.

 

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