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Stories Sponsored Groups Advertising solutions tailored for all kinds of situations – Facebook study 17 18 A lowcost and direct advertising solution for users: Facebook flyers Flyers let users make their own ads on Facebook at low prices The price is based on how many times the Flyer is viewed Flyers are displayed on the left side of Facebook pages, with the possibility to: Choose targets by both gender and age Target specific colleges, and go further by specifying the education status desired (undergrad, grad student, alumni) Select regional works you want your ad to be displayed on Flyers Pro, launched in Sept. 2023, offer more more options: Selection more precise (by location, sex, age, keywords, poltical views, relationship status and workplace) Specify how much you are willing to spend to advertise, by setting a maximum price per click : the higher the price, the higher the chances your ad will be shown Pricing is now CPC as opposed to CPM Facebook’ s lack of control has given rise to deceptive Flyers, launching fake security warnings and prompting users to download various softwares Sources: Facebook, The Register, faberNovel analyses – Facebook study 19 New advertising solutions: homepage sponsored stories Firms can target what everyone is paying attention to on Facebook: the users’ News Feed, where a story about your product will be displayed Only one sponsored story is displayed at a time, meaning advertisers will not be vying for attention against other ads A creative way of advertising: Clickthrough Rates 10 to 20 times higher than simple banner ads Companies have the possibility to choose a level of filtering: Untargeted (Standard offer) By gender or location ($2 premium) By their favorite interests, activities or movies (5$ premium) Sources: , faberNovel analyses – Facebook study 20 A recent source of revenue: sponsored groups As of Sept. 2023, 186 sponsored groups exist on Facebook: the cost for a sponsored group is $300,000 for 3 months (after a 200% price increase!) The group creates a branded, personal environment where users can gather and interact From an advertising perspective, the brand bees a participant Offers include packages and promotions to help spread the word on the group Most popular groups (10/09/07): Apple Students: 424,135 members PINK Victoria’ s Secret: 345,728 members NBA Finals Bracketball Trivia Challenge: 122,854 members Sources: Facebook, , faberNovel analyses – Facebook study 21 Towards a Facebook economy: Facebook applications development With the launch of the Facebook platform, Facebook has been touted as an online Social Operating System Facebook’ s first acquisition in July 2023, Parakey, was a web OS pany Facebook allows developers to build their own applications, and lets them keep all the revenues generated from its exploitation The success of an application is highly dependent on the application’ s virality and its user base Different ways of making money with an application: Promoting thirdparty applications Selling advertising space Attracting sponsors Selling online services Selling products Development of a real Facebook ecosystem Facebook app factories: Rockyou (superstar with the apps Horoscopes, XMe and SuperWall), Slide, AppFactory programme launched by VC Bay Partners, Social Media, 30boxes, AF83, … Internal (in third party applications) ad works have sprouted: Lookery, FBExchange, RockYou, EggNetwork, Cubics, Appsaholic, … In Sept. 2023, the $10 million fbFund was created by Facebook, offering grants ranging from $50,000 to $250,000 to aspiring applications developers Sources: Facebook, , Rockyou, faberNovel analyses – Facebook study 22 Applications obey to certain rules specific to Facebook More and more renowned panies are developing their own Facebook application, in order to reach a new audience Designing and spreading an application on Facebook requires a particular expertise that media panies seem to lack, Their applications fail to draw massive amount of daily active users (26/09/07) Even Yahoo!, a pany that knows how to distribute media on the Web, had to turn to application giant RockYou to redesign its application and attract users Evolution of the Yahoo! Music Videos application Whether the problem es from design issues, the application’ s content or a lack of understanding on how to drive traffic to an application (viral spreading, advertising), it seems that panies do not understand the Facebook platform yet Sources: Facebook, InsideFacebook, Rockyou, faberNovel analyses – Facebook study Summary Facebook: key facts and figures Facebook revenue model Measuring social media: 2 business cases University students: exchange and collaborate Bloggers: municate and get feedback Conclusion – Facebook study 23 24 Online munities navigate between media and social sites Media sites, where users mostly produce content The objective for users is to increase their visibility as a brand, individual or pany The actors are specialized according to their role on the site: producers, consumers,… A “ portal” history with a mon homepage for users, with little customization Even when the sites are collaborative, the 1% rule applies (stating that only around 1% of u