media n bussi

8/7/2019 media n bussi

1/23

Business and Media


2/23


3/23

History Most people know the story by now of how

19-year-old Harvard sophomore Mark Zuckerberg

started Facebook in his college dorm room.

The site, which essentially began as an online

student directory, went live on Feb. 4, 2004.


4/23

Within four days, more than 650 students had

registered. After one month, the number had reached

10,000.

And now, more than six years later, close to 500

million people worldwide actively use the site.


5/23

Secret of

Secret of fa

cebookfa

cebook makingmaking

moneymoney

ADVERTISEMENT BUSINESS:

Self-Serve Facebook Advertising- Rs.202500 lakhs.

Engagement Ads Rs.112500 lakhs.

Microsoft Banner Advertising Agreement

Rs.22500 lakhs.


6/23

CONT..

VIRTUAL GOODS AND THE GIFT SHOP:

Revenue Rs.67500 lakhs.

FACEBOOK CREDITS:

Revenue Rs.67500 lakhs.


7/23

Competitors of Facebook


8/23

Future Aspect of Facebook

After five years- picture of a big

industry.

Ambition of Mark Zuckerberg

Facebook the most important influential

technology company in the world.


9/23


10/23

HOW FACEBOOK MAKES

MONEY


11/23

Self-Serve Facebook Advertising

The largest chunk of Facebook revenue is self-serve

advertising platform.

The primary advantage of Facebooks self-serve

advertising platform is the granular targeting features.


12/23

Facebook recently released the Facebook Ads API which

provides large ad buyers with the ability to build robust ad

managers on top of the Facebook advertising platform.

We expect Facebook to generate somewhere in the

range of $450 million this year (201

0) on self-

serve ads.


13/23

Engagement Ads

Engagement Ads are Facebooks solutions for large

brand advertisers.

Facebook places all engagement ads on the sites

homepage. Once a user logs in, they can interact

with advertisements.

Facebook stepped up their efforts with the launch

of Brand Lift.


14/23

Microsoft Bann

er Adv

ertisingAgreement

Facebook had an advertising agreement with

Microsoft for displaying large banner ads on the site.

Facebook is phasing out the banner

advertisements from Microsoft as they want to be

completely self-sufficient.


15/23

Total revenue generated from Microsoft

advertising will be less than $50 million

this year as they phase out banner ads

completely.


16/23

Virtual Goods And The Gift Shop Facebook currently generates a large amount

of revenue from the Facebook Gift shop.

Its a product which enables users to sendvirtual gifts to one another.


17/23

At an average cost of $1 per gift, Facebook gifts

have become an extremely lucrative business,

generating upwards of $100 million last year.

Facebook has been slowly opening up the gift shop

to third-party developers.

Facebook to generate upwards of $150 million from

their gift shop by the year 2012.


18/23

Initially used as a way for Facebook users to purchase

virtual goods through the Facebook gift shop.

Facebook is slowly opening up Credits to

third-party developers. The purpose is for developers

of applications.

Facebook to generate $150 million in revenue from their

Credits platform this year

Faceb

ook Credits


19/23

2010 Revenue

By growing multiple revenue sources,

mostly around advertising.


20/23

RevenueSources

Brand Advertising($150 $350 million).

Microsoft Advertising.

Virtual Goods($10 million).

Performance Advertising($150 million).


21/23

Revenue System Romoured Run

Rate, July 2010

Estimate, EoY 2010

Brand Advertising $125,000,000 $225,000,000

Microsoft Advertising $150,000,000 $50,000,000

Virtual Goods $75,000,000 $10,000,000

Performance Advertising $200,000,000 $350,000,000

TOTAL $550,000,000 $635,000,000


22/23

Facebook is currently trying to become the worlds

largest social utility, expanding their social graph

globally.

Apple has adopted Facebooks Mobile Application

within their newest and the worlds most popular

cell phone, the iPhone (3G).

CONCLUSION


23/23

Facebook has no real competitors in the

mobile social market due to their Mobile

Platform.

media n bussi

Documents

Transcript of media n bussi