Facebook's Growth Potential: An Analysis

So many users of the internet blindly browse and post on these sites without any thought to the online identity they are creating for themselves. Shares, tweets, hashtags, likes, and comments all combine to make up an amalgamation of marketable information. In November of 2016, an average of six thousand tweets were made per second, and ninety-five million Instagram posts were made per day (Sayce; Parker). Facebook “has become the largest database of personal information ever collected,” says Richard, and Facebook takes advantage of this. With almost two billion users, Facebook has no shortage of information to gather (Sparks). They do this mainly for targeted advertising. There is no small profit to be made in this. In 2011 Lori Andrews wrote, “Facebook made $3.2 billion in advertising revenue last year, 85% of it's total revenue.” However, Facebook and other internet corporations also relay data gathered on users to the

Social Media began affecting our communication and relationships as early as 1969 when the first internet service provider become available to U.S. universities. In 2002, Friendster, the first social media website available to the U.S. was created and gained over 3 million members in just over 3 months. One year later, MySpace launched. In 2004, Mark Zuckerberg, a 24-year-old Harvard student, created Facebook, an online social networking service. This service was originally a way for students to interact. Today it is the world’s largest social networking service and allows over a billion users to connect though posting photos, sharing links, and comments which all appear on a “News

With evolving technology comes new types of social media, people have begin to question the internet’s effect on our mentality. It is a bit difficult to compare the pros and cons of social media, it has more to do with an individual’s experience.  Some could be having a horrible time due to social media, but others could be thriving off of it.  The more negative implications of using social media could be the way that we share our personal lives and how much of it we give to the public, regardless of social relationships, to consume.  Along with this, we are deeply impacted by what we see from others based on our viewing of what they share because of the ability to create falsified identities and unrealistic interpretations of who we are

Facebook is the biggest social media network on the internet with a massive following which continues to expand. Mark Zuckerberg alongside his college roommates created and launched the world’s most popular social media site on 4 February, 2004. Zuckerberg previously developed other sites for fellow students to

Ellison, Steinfield and Lampe identify that social networking sites are among the main use of internet today. According to the authors, social networking sites are among the social media platforms that facilitate interaction in the computer environment. The writers identify the main motives for using social networking sites, for example, Facebook. One of the benefits is that Facebook improves the quality of life both social and at workplaces. According to the writers, social media has become common in the society that a majority cannot remember previous life without them. Social networking sites have become popular among college students who find it as a major platform for social interaction.

In this day and age, social media has become an integral part of our lives. It has created a platform for people to share information instantly and communicate with people all around the world. Facebook is the most outstanding example of successful social media network. According to the first quarter 2015 earnings announcement by Facebook, the site has achieved 1.44 billion active users per month, and 65% of which are daily active users. Other social networking sites such as Twitter, Instagram and LinkedIn are also a powerful means of communication. With such a large audience, social networking sites provide ample opportunities to acquire information, network, and connect with friends.

What is the intrinsic value of a Facebook share? How does this valuation compare to the price talk from underwriters?

It’s quite fascinating that in the early 2000’s social media wasn’t even invented; yet statistics show that Facebook has accumulated users surpassing the entire population of the United States. The

However, according to Laudon and Traver (2012), financial analysis helps us to understand how a firm is performing. There are two parts to a financial analysis: the statement of operations and the balance sheet. The statement of operations tells us how much money (or loss) the firm is achieving based on current sales and costs. The balance sheet tells us how many assets the firm has to support its current and future operations.

Facebook is currently largest social networking site in the world based on monthly unique visitors – attracting 130 million unique visitors every day (Alexa Inc. 2012). The site’s popularity exploded in 2007 and it bypassed its social networking rival, MySpace, in April 2008 (Phillips 2007). Over the last few years Facebook has impacted people’s social lives in various ways. With its availability on modern smart phones, Facebook enables users to continuously stay in touch with friends, relatives and peers wherever they are in the world as long as they have internet access. It can also group people together who share beliefs and interests and has been known to even reunite lost family members and friends through its enormous social reach

Within the social media industry, Facebook quickly rose and surpassed its competitors through a series of innovative strategies. However, Facebook is plagued by privacy concerns in sharing of user personal data. Consequently, Facebook must takes steps to regain and maintain confidence of its stakeholders. Moreover, various strategies must be employed for Facebook to remain a leader in this industry. Accordingly, the following annexures detail Facebook’s strategies for initial growth, it’s privacy challenges, improvements for stakeholder confidence, and strategies for future growth.

Facebook, a social networking website, has changed the way people communicate with each other. A social networking website is an online platform that allows users to create a public profile and interact with other users on the website. Facebook has even changed our most personal and private conversations and how they are conducted around the world. Since the internet’s birth in 1983, this trend of online communication has been growing. Created in 2004, now registered with more than one billion participants, Facebook’s user numbers surpass even the top four social networking websites combined. According to Wikipedia statistics, Instagram has 300 million registered users, LinkedIn has 200 million users, Classmates.com has 50 million users, and Flickr has 32 million registered users. To be further convinced of the claim that Facebook indeed changes the way we communicate, you would only need to create your own Facebook account and start participating in their social networking experience. Technology and internet usage is fused into every aspect of our society including the style of communication. The launch of Facebook in 2006 also enabled other devices such as touch phones, interactive tablets, and even advanced cars with their own networking capabilities starting in 2007. Facebook is a multibillion-dollar company and is highly recognized for connecting more people than other networks. Facebook’s long-term success can be attributed to providing entertainment, world news, and

A framework for understanding social networks is developed; distinguishing networks on content ranking mechanism, network type, and device focus. Facebook is found to be robust towards often-considered risks, such as privacy concerns and global shift towards smaller screens.

The purpose of this paper is to discuss different aspects about Facebook as an increasingly used tool in marketing. We’ll first take a look at advertising as the main source of revenue for Facebook, Inc. and whether it was affected by General Motors drop out by looking at the numbers before and after their IPO. We’ll then take a look at Facebook’s advertising system and its effectiveness as a marketing tool and will end with presenting some challenges of branding on Facebook. As a marketing tool, Facebook can only be used as effectively as marketers want and are capable of. No matter how valuable is the number of clicks or likes, the marketer is the one that can position the brand in peoples’ minds.

More importantly, social network sites have become mainstream and it has been reported that globally, these sites account for one in every 11 minutes spent online (Jones, 2009). 54 percent of Internet users between 16 and 24 have set up their own page or profile on a social networking site (Palmer & Koenig-Lewis, 2009). The usage of social networking is increasing at a tremendous speed, and it is influencing how people share knowledge across the globe. Social network sites are attracting users more than any other social media tool, today. Among the wide impacts of social network sites, they are, in fact, becoming increasingly important in today’s businesses.