1 company proprietary and confidential copyright info goes here just like this the reinvention of...
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Company Proprietary and Confidential Copyright Info Goes Here Just Like This
The Reinvention of Facebook
Presented By Joseph SokTo: Facebook Boards of Exec.
June 26, 2012Company Proprietary and Confidential Copyright Info Goes Here Just Like This
Addressing the Global Market and Mobile Advertising
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Concern Causes Effects
Competition with Twitter Twitter’s Functionality Making it the top Social Media for Celebrities and Consumers
Advertisers and Endorsers uses Twitters as their main marketing tool.
Global Mobile Users andNon Existence Mobile Advertisements
There’s a growing Trend in Global Active Users That Uses
Facebook Only through mobile devices .
• Many Global Users view Facebook only from a mobile device.
• Device inability to support advertisement
Facebook generates no revenues from the mobile only users or from mobile advertising
Reinvention of Facebook Facebook has lost consumers and advertisers interest.
In the past Facebook has unsuccessfully tried to reinvent its image and software.
Loss of Consumers = Loss of Advertisers = Loss of Revenue!
Facebook Problems Causes and Effects
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• Twitter started as a mobile application for the on-the-go consumers.
• Functionality makes it ideal for celebrities.
• Its trademark “hashtag” (#) acts as a keyword for any topic on Twitter.
- Once a word, topic, or even a name is tagged, people can search for a
keyword and can easily view all “tweets” involving that word.
• Making it an ideal Marketing tool for Advertisers.
Competition with Twitter
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• All social media has a mobile application.
• None have the capability to create a Desktop Widget.
• Widgets is an interactive program that’s installed on right on your
Desktop.
• Constantly Updated
• Allows for Convenient access
• 400,000,000 Active Users Only Uses Facebook from Desktop and
Laptop Devices
Facebook Desktop Widget
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Competition with Twitter Twitters Background
• Allows Users the Same Functions that
they have on the Facebook Website
• Allows for real time updates
• Easy Access right on your Desktop
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Active Users Statistics
Desktop Only Users; 366,000,000
Cross User; 450,000,000
Mo-bile Only Users
*, 84,000,000
* Growing At A Rapid Rate
Cross Users – Access Facebook between platforms-Mobile Website and Mobile Application (Desktop)-Both of which, does not support advertising
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• Advertisers foresee the growing trend of Cross and Mobile Only Users.
• Mobile Advertising Spending is Predicted to Increase from 1.45 Billion in 2011 to 10.85 Billion by 2016.
• Problem 1: Facebook generates no revenue from Cross and Mobile Only Users.
• Problem 2: Inability to establish mobile advertising revenue due to technological constraints
• Solution: Create a state of the art mobile device that’s built around Facebook Functions and that capable in handling mobile advertisements.
Mobile Advertisement
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• Facebook will be contracting with Research in Motion and Android to make this technological feat a reality.
Research in Motion; The Creators of Blackberry
• Recent Years Have Lacked in Sales and New Ways To Reinvent Themselves
• Due to the fact they have been running off of unique operating system.
1. Limited Selection of Applications
2. Diminished Their Appeal to todays Modern Age Consumers.
Android: Android Operating System
• Currently one of the top mobile Operating Systems
• Consumers are drawn to their vast selection of applications on “Android Market”
Joint VentureFacebook, Blackberry and Android
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• In the Contract Blackberry has agreed create a State of the Art mobile device that incorporates Facebook's functions right in to the software.
• Along with the capabilities to support mobile advertisements.
• Device will have One Touch Capabilities such as “Status Update, Tagging Friends, Sharing Location”
• The new device will no longer be running on Blackberry’s unique operating system but now will running on the popular Android Operating Systems
• Consumers will have access to the vast selection of apps offered on Android Market.
• Since Blackberry will be running on the new Android system, This will expand their marketing range and will be able to draw in new consumers.
Joint VentureFacebook, Blackberry and Android
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• State Of the Art Design
• First Time Integration of Android Operating System into Blackberry Phones.
• One Touch Capabilities/ Touchscreen
Introducing Blackberry Revolution
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• State Of the Art Design
• First Time Integration of Android Operating System into Blackberry Phones.
• One Touch Capabilities/ Touchscreen
Introducing Blackberry Revolution
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• State Of the Art Design
• First Time Integration of Android Operating System into Blackberry Phones.
• One Touch Capabilities/ Touchscreen
Introducing Blackberry Revolution
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Company Proprietary and Confidential Copyright Info Goes Here Just Like This
• State Of the Art Design
• First Time Integration of Android Operating System into Blackberry Phones.
• One Touch Capabilities/ Touchscreen
Introducing Blackberry Revolution
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• One Touch Capabilities/ Touchscreen
Introducing Blackberry Revolution
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• Research and Development estimated a project cost of $25,000,000
• With a return revenue of $76,000,000
• Of the total expenses; Research in Motion agreed to contribute 40% (10 million)
• Facebook will be contributing 35% (8.75 million)
• And Android has agreed to contribute 25% (6.25 Million)
RESEACH AND DEVELOPMENT: EXPENSES
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• In the joint contract all parties agreed for a return in revenue matching the % contributed from all parties.
• Research in Motion projected revenue was 40% (30.4 Million)
• Facebook had a projected return rate of 35% (26.6 Million)
• And Android has agreed to a 25% (19.9 Million) for use of the Android Operating System.
• By agreeing to this Joint Contract, Facebook will now be able to make a revenue from Cross and Mobile Only Users. Since Facebook will getting a portion of all sales of Blackberry Revolution Mobile Device.
• This will also open Facebook to future mobile venture opportunities.
• Note that the revenue stated above does not include revenue from mobile advertising.
• Seeing as how Blackberry Revolution is capable of mobile advertising, Facebook will now be able to generate revenue from mobile advertisers.
RESEACH AND DEVELOPMENT: REVENUE
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• Benchmarking from EBay, Amazon and PayPal
• Facebook Store
• Retailers are able to set up Facebook Business Pages.
• Post Product and Sell Products
• Facebook Users are able to Purchase Items from Facebook Store Using Their Facebook Account
• Facebook Users can add Payment Option (Credit Cards or Debit Cards)
• Enables One Click Payment Icon.
• Facebook One Click Payment Option Isn’t Just Limited to Facebook Store
Facebook Store
Facebook Payment Icon: Following the same familiar Facebook logo concept, We accented the original Blue with Shades of Green.
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• Retailers can use the Facebook Payment Solution on Their Own Personal Website
• No Costs to add Facebook payment Solution
• Facebook charges a 10% fee for of purchases made through Facebook Payment Solutions.
Facebook Store
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Introducing Blackberry RevolutionEvery Facebook Business page will show Payment Icon.
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Conclusion
• With the new Facebook integrated Blackberry Revolution, Facebook will be able to tackle the growing trend of mobile-only users and will alsobe able to incorporate mobile advertising.
• Facebook will strengthen its image through the new line of Facebook Integrated devices and features that will attract business owners.