Social networks effect on everyday life

Market                

Opportunity

 

Google was started as a research Project by Stanford Students Larry Page and Sergey Brin, Ph.D  to “develop the enabling technologies for a single, integrated and universal digital library.

Facebook was also started at Harvard by students Mark Zuckerberg, Eduardo Severin, Dustin Moskovitz and Chris Hughes. It was originally started for students to meet other students of Jewish heritiage for dating,and quickly turned into much more.

I started using Facebook several years ago when it was recommended for me to reconnect with High School friends by one that I met in a store. I recently applied for a job in a school system, and do get to the application, you had to go thru their Facebook page.

It can be helpful in so many ways. I am planning a upcoming trip to Old Sturbridge Village, and haven’t been there since on a class trip when I was twelve! I went to their Facebook page, and asked about places to stay and things to do in the area, as we are planning a weekend getaway, and was answered back today with links to hotels and a activity calendar to help plan our stay!

 

Revenue Model

 

They used a “Advertising Funded search engine” model.

In 2000, Google sold advertisements associated with key words that people searched for. The ads were text-based so the page would be uncluttered and to maximize the speed of loading the ad Keywords were then sold based on price bidding and clicking through the bids starting at five cents per click.

 Revenue comes from advertising on Facebook, but many users are young, and can block the pop-ups. They clcik on the Banner ads as a rate 1/2 that of Google, but when a company has  a “like” us to get a coupon, or a video, people tend to watch the entire video, or click ” like” to be entered in a contest and get a coupon.

When I’m on my Facebook page, I tend to “like” many of the products that I use on a regular basis to get coupons, such at Tetley, Old Navy, Clairol and Macy’s. Sometimes they also have ” Facebook only” sales. At Christmas, Target had a coupon on Facebook only for $10 off a $50 purchase.

Also, I love eating at Chili’s when I am in a ” give me my baby back, baby back, baby back ribs………..” and they have a coupon for a free appetizer or desert frequently on their Facebook page!

Resources/Tactics

 

Brin and Page wanted to expand the company, but originally, not take Google public. But investors forced them to hire a CEO with more businesses experience then the two students, and they hired Eric Schmidt. The company then went public after three years.

 

Under Schmidt, they acquired Pyra Labs in 2003 which hosted weblogs. It kept the company competitive by using the information from the blogs to improve speed and the reverence of the articles such as what went into Google news.

On November 15, 2010 Facebook acquired the domain name fb.com from the American Farm Bureau Federation. In 2011 that doman had made $8.5 million dollars in income. In early this Febrary, a IPO went out for Facebook, selling their stock and set to make between $75-100 billion!

I read in the news and listened to talk radio, that when Google went public, their price in stock tripled over the years, from when it was first sold, but because so much stock is being offered in Facebook, if you are a small consumer buyer, it really wouldn’t be worth the investment.

 

Risks

 

They risked losing users right to privacy and anonymity. In 2006, in a case called Gonzales vs Google the U.S. Justice Department sought a court order to turn over a “multi-stage random sample of one million URL’s” from their database. And the “text of each search string entered into the database”.  Google said that this would cause a loss to users privacy and challenged it, the court made them turn over 50,000 random URL’s, but the Department of Justice didn’t meet the burden of proof for them to disclose any search terms.

In November of 2011, they settled with the Federal Trade Commission that people didn’t have as much privacy on Facebook as they thought. My sister told me, and I also read, that if I am on Facebook, and open to apply for jobs, check my email where I am going to school, everything I open, Facebook is able to see. That is how sometimes I will get popup’s from websites that I may have checked out for research for a class.

Now with the new updates on Facebook, and the new timeline, I find Facebook more confusing, and myself and friends spend less time on Facebook then we did in the past.

 

References:

 

Wikipidia.org, retrieved 1/26/2012 and 2/9/2012

 

 

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One response to “Social networks effect on everyday life

  1. I find the adoptin of Facebook to be a most curous thing at times. Your example of having to use Facebook to get an application demonstrates the popularity of Social Media with respect to business on the web and the lack of understanding of its usage.

    Facebook is a great place to engage with customers and other stakeholders. It is not a replacement for a company web site. Many companies and organizations are making the mistake of letting a Facebook page be there only Internet presence. And in doing see, they cede control and ownership of their relationships to Facebook. (I made a case for this in my post “Yes, You Still Need a Web Site!” – http://johnbentleyii.wordpress.com/2012/01/21/yes-you-still-need-a-web-site/)

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