Facebook Harvard Case Solution & Analysis

  1. Evaluate the success of advertising on Facebook.

The advertising strategy of Facebook was very impressive where the organization offers free corporate profile pages to the companies to post information about their products and invite fans to respond with comments; this strategy enabled them to generate 90% revenue from advertising.

One of the most important means of success of advertising on Facebook is its customer base. In September 2011, Facebook registered its 800 million users. The site attracted broad range of age groups and cultures, with more than 75% of its individual users outside the U.S, which provided an opportunity for companies to target large range of customer base.

Facebook reported successful advertising strategy due to its unique features of likes and sharing, which enabled companies to determine the interest of users; i.e. an advertising that responded high likes provides information about the success of the advertising. Further, Facebook also provides comments feature in their sites that acts as a market survey where users comment about the attractive and unattractive features of the marketed products, which enable companies to modify their products according to the user’s specification.

As Facebook adds new features like new feed, messaging, group, discussion board, video sharing and blogging, hence, it enables them to increase average minutes per visitor on Facebook by nearly 30%, which enables corporate customers to advertise their products to large customer base. Further, Facebook also provides an additional benefit to their corporate clients to target their campaigns on the basis of age, gender, geographic, location, marital status and interest, which acts as a competitive advantage for Facebook.

Further, Facebook pages also allowed businesses, brands, products, artists and public figures to create free custom free facebook pages, which provides an opportunity to the users to grasp the latest information about the latest products or brands offered by the company. Further, it also provides information about their favorite celebrities, which increases the users’ interest and provides an opportunity for corporate clients to specifically target interested users.

Another means of success of advertising on Facebook is that the internet advertising is always considered as a cheaper means of advertising, which will save the advertising cost of corporate clients. Further, it is also considered as an environment friendly advertising technique because it does not require any printed banners or broachers that requires  recycling, so it really attracts environment friendly corporate customers to adopt it as a means of advertising.

Facebook does not spread information about products of the company but has continued to expand its display and capabilities where the large advertisers run many campaigns simultaneously and integrate these campaigns with their own systems. Further, one of the smart features of Facebook is that it provides suggestions to the friends of a user, specifying that your friend has liked it, so it indicates that each and every single user of the product is contributing towards increasing the sale of the product.

  • 2.      Evaluate the Facebook Platform and Facebook for Web sites.

Facebook platform is a set of tools that enabled third party developers to develop applications inside the Facebook environment. Initially, when the Facebook launched the application then very small number of applications account for most usage and the applications were criticized as silly, useless, time-wasting and responsible for privacy violation. Finally, Facebook allowed developers to generate sufficient revenue, although they were low but were sufficient enough to cover their costs. Later on, the applications reported a substantial boom and were responsible for more than one third growth of the site’s traffic and account for 18% of total minutes spent on site.

The Facebook platform became so popular and the company reported substantial revenue from social gaming industry. In 2009, Zynga launched FarmVille, which became very popular a game on Facebook and helped the gaming industry to become viral on such social sites. Further, in 2011, Zynga launched another game, which was a massive hit and attracted over 250 million users monthly, with over 45 million users on any given day.

After the Facebook launched the platform, it announced a second-generation platform called Facebook for websites, which offers exactly the same set of capabilities as Facebook platform but developers now integrate these features into third party websites.

Facebook for websites offers different types of functionalities; for non- Facebook users, it requires an account and password to validate the account whereas for Facebook users, it directly obtains the information from Facebook account and can save time by clicking “Connect with facebook”, which will save time of the users. The third party sends information on user’s activities on the website to Facebook for his or her friends to see.

Third parties can use Facebook for websites to obtain substantial data, which range from their personal data to their keen interest, which helped ....................

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