Kirthiga Reddy, 39,
Director, Online Operations, and Head, Facebook India
Facebook (formerly [thefacebook]) is an online social networking service headquartered in Menlo Park, California. Its name comes from a colloquialism for the directory given to students at some American universities. Facebook was founded on February 4, 2004, by Mark Zuckerberg with his college roommates and fellow Harvard University students Eduardo Saverin, Andrew McCollum,Dustin Moskovitz and Chris Hughes. The founders had initially limited the website’s membership to Harvard students, but later expanded it to colleges in the Boston area, the Ivy League, and Stanford University. It gradually added support for students at various other universities and later to their high-school students.
Facebook Careers: https://www.facebook.com/careers/
Facebook now allows anyone who claims to be at least 13 years old worldwide to become a registered user of the website, although proof is not required.After registering to use the site, users may create a personal profile, add other users as friends, exchange messages, post status updates and photos, share videos and receive notifications when others update their profiles. Additionally, users may join common-interest user groups, organized by workplace, school or college, or other characteristics, and categorize their friends into lists such as “People From Work” or “Close Friends”. Facebook had over 1.3 billion active users as of June 2014. Due to the large volume of data collected about users, the service’s privacy policies have faced scrutiny, among other criticisms. Facebook, Inc. held its initial public offering in February 2012 and began selling stock to the public three months later, reaching a peak market capitalization of $104 billion.
The ownership percentages of the company, as of 2012, are:
Mark Zuckerberg: 28%,
Accel Partners: 10%
Digital Sky Technologies: 10%
Dustin Moskovitz: 6%
Eduardo Saverin: 5%
Sean Parker: 4%
Peter Thiel: 3%
Greylock Partners: between 1 to 2%
Meritech Capital Partners: between 1 to 2% each
Li Ka-shing: 0.8%
Interpublic Group: less than 0.5%
A small group of current and former employees and celebrities own less than 1% each, including Matt Cohler, Jeff Rothschild, Adam D’Angelo, Chris Hughes, and Owen Van Natta, while Reid Hoffman and Mark Pincus have sizable holdings of the company. The remaining 30% or so are owned by employees, an undisclosed number of celebrities, and outside investors. Adam D’Angelo, former chief technology officer and friend of Zuckerberg, resigned in May 2008. Reports claimed that he and Zuckerberg began quarreling, and that he was no longer interested in partial ownership of the company.
Key management personnel consist of:
Chris Cox (Chief Product Officer), Sandberg (COO), and Zuckerberg (Chairman and CEO). As of April 2011, Facebook has over 7,000 employees, and offices in 15 countries. Other managers include chief financial officer David Wehner and public relations head Elliot Schrage.
Facebook was named the 5th best company to work for in 2014 by company-review site Glassdoor as part of its sixth annual Employees’ Choice Awards. The website stated that 93% of Facebook employees would recommend the company to a friend
Most of Facebook’s revenue comes from advertising. Facebook generally has a lower clickthrough rate (CTR) for advertisements than most major Web sites. According to BusinessWeek.com, banner advertisements on Facebook have generally received one-fifth the number of clicks compared to those on the Web as a whole, although specific comparisons can reveal a much larger disparity. For example, while Google users click on the first advertisement for
search results an average of 8% of the time (80,000 clicks for every one million searches), Facebook’s users click on advertisements an average of 0.04% of the time (400 clicks for every one million pages).
Sarah Smith, who was Facebook’s Online Sales Operations Manager until 2012, reported that successful advertising campaigns on the site can have clickthrough rates as low as 0.05% to 0.04%, and that CTR for ads tend to fall within two weeks. By comparison, the CTR for competing social network MySpace is about 0.1%, about 2.5 times better than Facebook’s rate, but still low compared to many other sites.
The cause of Facebook’s low CTR has been attributed to younger users enabling ad blocking software and their adeptness at ignoring advertising messages, as well as the site’s primary purpose being social communication rather than content viewing. According to digital consultancy iStrategy Labs in mid-January 2014, three million fewer users aged between 13 and 17 years were present on Facebook’s Social Advertising platform compared to 2011. However, Time Writer and Reporter Christopher Matthews stated in the wake of the iStrategy Labs results:
A big part of Facebook’s pitch is that it has so much information about its users that it can more effectively target ads to those who will be responsive to the content. If Facebook can prove that theory to be true, then it may not worry so much about losing its cool cachet.
Zuckerberg, alongside other Facebook executives, have questioned the data in such reports; although, a former Facebook senior employee has commented: “Mark [Zuckerberg] is very willing to recognize the strengths in other products and the flaws in Facebook.
On pages for brands and products, however, some companies have reported CTR as high as 6.49% for Wall posts. A study found that, for video advertisements on Facebook, over 40% of users who viewed the videos viewed the entire video, while the industry average was 25% for in-banner video ads.
The company released its own set of revenue data at the end of January 2014 and claimed: Revenues of US$2.59 billion were generated for the three months ending December 31, 2013; earnings per share were 31 cents; revenues of US$7.87 billion were made for the entirety of 2013; and Facebook’s annual profit for 2013 was US$1.5 billion. During the same time, independent market
research firm eMarketer released data in which Facebook accounted for 5.7 per cent of all global digital ad revenues in 2013 (Google’s share was 32.4 per cent). Revenue for the June 2014 quarter rose to $2.68 billion, an increase of 67 per cent over the second quarter of 2013. Mobile advertising revenue accounted for around 62 per cent of advertising revenue, an increase of approximately 41 per cent over the comparable quarter of the previous year.
Mergers and acquisitions
On November 15, 2010, Facebook announced it had acquired the domain name fb.com from the American Farm Bureau Federation for an undisclosed amount. On January 11, 2011, the Farm Bureau disclosed $8.5 million in “domain sales income”, making the acquisition of FB.com one of the ten highest domain sales in history.