Facebook Case Study

Abstract

This paper discusses a brief history of Facebook, explores ways it has used advertising and other products to increase user interaction and revenue, and finally offers suggestions for future monetization of Facebook.

Table of Contents

Table of Contents 1

Introduction 2

Why People and Businesses Use Facebook 2

Facebook Advertising 3

Facebook Fan Pages 4

Facebook Platform and Facebook for Websites 4

Going Forward 6

References 8

Introduction

Facebook was created by Mark Zuckerberg, a Harvard University student, in 2004. The site was originally designed to be an alternative to the Univeristy’s paper student directory. It introduced the concept of users being able to control what others saw on their social networks, and restricted membership to only those with an .Edu email address. After its initial success at Harvard (75% of the student population signed up within a month of its launch), Zuckerberg expanded it to other universities and within a year the site had expanded to over 800 colleges and universities in the United States. In 2006, Facebook expanded to include workplaces and soon after, it was opened to the public with no restrictions on educational institution or workplace. The company has made multiple changes to the layout and features of the site over the last ten years and has grown into the major player in the social networking sector. In 2012, the company filed its IPO which was valued at $16 billion, the largest technology IPO in U.S. history.

This paper seeks to explain the various ways people and businesses use Facebook, explore the methods the company uses to monetize the site and finally to suggest the best way for the company to continue monetization and increase revenue in the future.

Why People and Businesses Use Facebook

Facebook is used by individuals and businesses for a variety of reasons....