The Innovation of Facebook

Mark Zuckerberg on facebook releasing day. 9 Degree. All rights Reserved

People like social media, smartphones and everyday digital rituals. It is the key to our education and entertainment (not to mention news, our network and our social calendar). In addition to the latest and greatest applications and gadgets, people also love old-fashioned, antique and timeless communication tools. This is because in the past few years, the face of communication has changed dramatically. Traditional telecommunications companies have dominated two-way interpersonal conversations in history, but more and more market participants are beginning to use open platforms to meet the rapidly changing user’s needs (Kaul V, 2012)

. In this essay, I will using Facebook to examine how and why Facebook is a part of the historical trend in communication media and who control the business and who benefit from it.

Facebook is a social networking site launched in February 2004 and is privately operated by Facebook inc.(Facebook, 2004). Facebook was created by Mark Zuckerberg and others at Harvard, although it was originally limited to Harvard students when the site was first launched. Later, the privilege was extended to high school students and later to people aged 13 or older (Boyd, 2007). As of July 2010, Facebook has more than 500 million active users. In January 2009, Facebook was named the most used social network in the world. Similarly, in May 2010, Google announced more people visiting Facebook than any other website in the world. It claims that it was discovered from the discovery of 1,000 locations around the world. (Times, 2010). Users can create profiles; add other users as friends and exchange messages when updating profiles, including automatic notifications, photos, and comments. In addition, Facebook users can join a group of common interest users organized by the workplace, school, college, or other characteristics. Facebook allows people who are at least 13 years old to become registered users of the site. Every day, the traffic on the Facebook network is rising. Facebook has also become the top social network in eight individual markets in Asia, the Philippines, Australia, Indonesia, Malaysia, Singapore, New Zealand, Hong Kong and Vietnam. On October 24, 2007, Microsoft announced that it had acquired 1.6% of Facebook’s shares for $240 million, bringing Facebook’s hidden value to around $15 billion. Microsoft’s acquisition includes the right to publish international advertising on Facebook; other companies have followed suit (Stone, 2007). For example, during the 2010 FIFA World Cup, Nike made an advertisement on Facebook. In a few minutes, an average of 8 million viewers registered Facebook (kevthefont, 2010).

Facebook is popular for a reason. The founder of Facebook is Mark Zuckerberg’s treasure in the social media kingdom is not just luck. In fact, it’s a series of smart initiatives and innovative features that make the platform stand out from the rest of the social media pack (Shah S, 2016). First, the 2007 launch of the Facebook platform is the key to the success of the site. The open API makes it possible for third-party developers to create applications that work inside Facebook (Shah S, 2016). Almost after being released, the platform gained a lot of attention (Shah S, 2016). There was a time when Facebook built hundreds of thousands of apps on the platform, so that Facebook launched the Facebook app store to organize and display them. At the same time, Twitter created its own API and achieved similar success (Shah S, 2016).

Another key to success is Facebook’s ubiquitous “like” button, which frees itself from the boundaries of the site and starts appearing on the Internet (Shah S, 2016). Now, even if you are not on Facebook or Twitter, you can also “like” or “Twitter” (Shah S, 2016). Aware of the power of social networking, Google decided to launch its own social network (Google+) in 2007 (Shah S, 2016). It differs from Facebook and Twitter in that it is not necessarily a fully functional Web site, but rather a social “layer” of the overall Google experience. Initially, Google generated a lot of hot topics through the service’s ring chat feature, which allows users to chat with other online friends in real-time video (Shah S, 2016). At the time of its release, Facebook was busy integrating its own video chat features (Shah S, 2016).


The biggest part of Facebook’s revenue is the company’s self-help advertising platform (Nell N, 2010). By visiting the following pages, you can set up your advertising activities on Facebook. These advertisements are displayed in the sidebar of most pages of the website(Nell N, 2010). This includes user profiles, events, groups, Facebook pages, and third party applications. The main advantage of the Facebook self-service advertising platform is the granularity location function (Nell N, 2010).

Over the past few years, Facebook has increased its positioning capabilities, including the ability to limit advertising to metropolitan areas and the following target variables: gender, age, the Internet (workplace, school, etc.), personal data keywords, relationship status, etc (Nell N, 2010). Facebook recently released the Facebook Ads API, which provides large advertisers with the ability to build powerful ad managers on top of Facebook’s advertising platform (Nell N, 2010). To simplify, the Facebook Ads API allows Facebook to reduce friction between large advertisers (advertisers who spend more than $10,000 a day) posting new ads and modifying existing ones (Nell N, 2010). According to many sources, Zynga, the developer behind the biggest game on Facebook (FarmVille, Caf World, etc.), is the biggest buyer of Facebook self-help ads (Nell N, 2010). Small businesses like doctors, lawyers, restaurants and other small businesses are also responsible for the large amount of Facebook revenue generated by self-help advertising platforms (Nell N, 2010).


The last way for Facebook to generate revenue is through their Facebook Credits plan (Nell N, 2010). Originally used as a way for Facebook users to buy virtual goods through Facebook gift stores, Facebook is slowly opening Credits to third-party developers (Nell N, 2010). The goal is for application developers like Farmville and other large social games to integrate Facebook’s Credits products directly into their applications. Facebook will in turn occupy a large part of all virtual goods sold through the application (Nell N, 2010). In addition to testing alternative payments for Credits for users who cannot access credit cards, Facebook also tested user-to-user credit and In-Application credit integration (Nell N, 2010).


The ealy version of facebook page in 2007. Shaqib. All rights Reserved.



Facebook makes money in many ways, but advertising is the company’s revenue channel. Facebook is expected to generate as much as $1 billion in revenue this year as self-service advertising becomes a flourishing business for Facebook and as engagement advertising grows (Nell N, 2010). Although our estimates are positive, Facebook has been experiencing sustained growth, and through further education of the company’s advertising products, we expect Facebook to remain on track, almost doubling the previously reported estimate of revenue for the past year: $550 million (Nell N, 2010). Although many users still mistakenly assume that Facebook will charge users for not being able to pay for the site, the reality is that advertising is a huge business for Facebook (Nell N, 2010).

Facebook earning pie-chart. Techspririted. All rights Reserved

Facebook seems to be making money around the world, and of course it has an impact on other telecoms companies. There are three factors that make these companies at a disadvantage. First, social media such as Facebook is open and free, and this model is characterized by companies offering one-to-one communication services, but with little or no cost through an open Internet platform (Edosomwan S, Prakasan S, Kouame D, Watson J, 2016).These services may threaten profitable traditional services such as long-distance calls and mobile roaming (Edosomwan S, Prakasan S, Kouame D, Watson J, 2016). Secondly, Facebook is a gated community. Companies using this model focus on many-to-many communications in telecommunications control environments rather than point-to-point communications (Edosomwan S, Prakasan S, Kouame D, Watson J, 2016). They are essentially “walled gardens” of operator-led collaborative services that may attract users and businesses who need secure and reliable communication environments (Edosomwan S, Prakasan S, Kouame D, Watson J, 2016). Finally, Facebook offers a “shared social space,” a fast-growing model that promotes collaboration on the open Internet (Edosomwan S, Prakasan S, Kouame D, Watson J, 2016). The main participants include social networking sites such as Myspace and Facebook. These providers may become integrated communication platforms that combine social networks, voice communications, e-mail, instant and text messaging, and content (Edosomwan S, Prakasan S, Kouame D, Watson J, 2016). They are causing attention to traditional telecom companies and causing market fragmentation. In addition to gaining audience share, these services pose operational challenges for telecom companies because they “carry” existing communications infrastructure, create network capacity problems and increase the cost of network providers (Edosomwan S, Prakasan S, Kouame D, Watson J, 2016).


In conclusion, The major change of my study or work that caused by the innovation of social media is the distance from people to people. I can simply use social media platform to update my current status or even find help to let others know my situation or problem. It is efficient in every way to gain knowledge and information without step out of the house. As a student, I do really appreciate that the change of social media same me more time to communicate with others without have a face to face meeting.

Therefore, in my opinion, I rather exciting and ready for even more futuristic ideas of social media to change the game of communication.





TIMES, L. 2010. The business and culture of our digital lives, . Los Angeles Times,


Boyd, D. 2007. Social Network Sites: Definition, History, and Scholarship. Computer Mediated Communication, 3-20.


STONE, B, 2007. Microsoft to Pay $240 Million for Stake in Facebook . New York Times, 1.


Vineet K, 2012. “The Changing World of Media & Communication”. Journal of Mass Communication & Journalism. Retrieved From


Shaqib S, 2016. “The history of social networking”. Digital Trends. Retrieved form


Simeon E, Sitalaskshmi K P, Doriane K, Jonelle W, Tom S, 2011. “The history of social media and its impact on business”. The Journal of Applied Management & Entrepreneurship 16(3):79-91. Retrieved from



Mark Mao
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