Facebook ( www.facebook.com) is an online social networking directory that connects people with friends and others who work, study and live around them. People use Facebook to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet.
Created and launched in February 2004 by Harvard students Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz and Chris Hughes, the site began as a network strictly for Harvard University. Two months later, the site expanded to include other Ivy League schools. After that, the college network slowly grew and by the end of 2004, Facebook had registered more than one million users.
Now open to anyone with a valid email address, the site includes members' pictures, biographies, interests and messages, and members can browse freely through open profiles. Members may choose their personal levels of security to prevent strangers from accessing their personal information.
The platform enables anyone, anywhere, to build complete applications that members can choose to use. Applications range from photo sharing to graffiti walls and everything in between.
Last updated: November 19, 2009.
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1601 Willow Rd. Menlo Park, CA 94025 CA Tel. 650-308-7300 |
Type: Public
On the web:
http://www.facebook.com
Employees:
3,200
Employee growth: 50.4%
When it comes to social networking, it's wise to put your best face forward. Facebook, the social networking juggernaut, lets users share information, post photos and videos, play games, and otherwise connect with one another through online profiles. The site, which allows outside developers to build apps that integrate with Facebook, boasts some 901 million total users and about 526 million daily users. The firm was launched in 2004 by Harvard student Mark Zuckerberg as an online version of the Harvard Facebook. (The name comes from books of freshmen's faces, majors, and hometowns that are distributed to students.) In 2012 Facebook began publicly trading after filing one of the largest IPOs in US history.
Key numbers for fiscal year ending December, 2011:
Sales: $3,711.0M
One year growth: 88.0%
Net income: $1,000.0M
Income growth: 65.0%
Officers:
Chairman and CEO: Mark Zuckerberg
COO: Sheryl K. Sandberg
CFO: David A. Ebersman
The most popular social networking site. Founded in 2004 by Mark Zuckerberg, the site is free and derives revenue from ads. The name comes from the paper document with names and faces issued to college freshmen to help them get acquainted with each other. Using the search facilities, members can locate other Facebook members and "friend" them by sending them an invitation, or they can invite people to join Facebook (see Faceslam). Facebook offers instant messaging and photo sharing, and Facebook's e-mail is the only messaging system many students ever use.
The "Wall" is the area on Facebook where members post comments as well as receive postings from friends (see Facebook Wall).
Profiles, Pages and Groups
There are three types of representation on Facebook. Individuals create a Facebook "Profile," which is normally a two-way interaction with friends. Businesses create a Facebook "Page" to promote products and brands. Also called a "Fan Page," all members are accepted as fans, and although comments can be posted by them, a Page is primarily a one-way broadcast from the business. In addition, Facebook provides demographic statistics about usage. See Facebook Like.
The third presence is a Facebook "Group," and any community of people may create one. Group administrators may accept all members or reject requests based on the Group's criteria.
Explosive Growth
Initially targeting Harvard students, Facebook was later opened to other universities and then high schools. In 2006, it allowed everyone to join and added a News Feed feature that would broadcast changes in members' pages to all Facebook users identified in their network of friends. It turned Facebook into a personalized social news service that by 2010 had 500 million members.
Facebook Platform
In 2007, Facebook introduced its application platform to developers. By 2010, more than a half million applications were available for business, education and entertainment. Games have been the most popular, and Facebook Credits were created to provide virtual money to spend while playing. See Facebook Platform.
Beacon Social Ads
In late 2007, Facebook introduced its Beacon social advertising program, which tracked Facebook users who visit advertisers' sites. Ads were then targeted to others indicating that their friend purchased a product or service. Launched as opt-out, it was later changed to opt-in; however, after a class action lawsuit was settled, Facebook ended the Beacon system. See social networking site, social advertising, opt-in and opt-out.
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Incorporated: 2004 as Facebook, Inc.
NAIC: 513390 Other Telecommunications; 519130 Internet Publishing and Broadcasting and Web Search Portals; 541890 Other Services Related to Advertising
Facebook, Inc., runs a leading social networking web site, Facebook.com. Initially launched by undergraduates at Harvard University for college students, the site was soon expanded to include alumni in the corporate world as well as high school students. Membership was opened to anyone with a valid e-mail address in 2006. Facebook seeks to emulate real-life connections by structuring networks around schools, corporations, and geographic regions. A user's full profile information is available only to other users who are somehow connected. The resulting "social graph" is what makes Facebook a billion-dollar idea; the company has turned down acquisition offers worth at least $800 million. A news feed feature, controversial at first, allows sponsors to push ads to highly targeted audiences in ways never before possible. The value of online connections that imitate those in real life is also reflected in classified advertising and peer-to-peer lending services. Global searches of all registered users are not possible, limiting the possibilities for SPAM and other abuses.
Crimson Origins
Facebook began in 2004 as a kind of online directory for undergraduates at Harvard University. Mark Zuckerberg, the son of a dentist, was the driving force behind the company and served as its CEO. He was joined by his Harvard roommate, Dustin Maskovitz, as vice president of engineering, and former schoolmate Adam D'Angelo as chief technology officer. (A handful of other students sued Zuckerberg for allegedly stealing their idea; the case took years to work through the courts.)
Facebook was not Zuckerberg's first attempt to aggregate student information. In a scene reminiscent of War Games, Zuckerberg had earlier hacked into the university's computers. Instead of changing his grades, he downloaded pictures of undergraduates for his own "Hot or Not" style web site called Facemash, which invited browsers to rate the photos on their relative attractiveness. Instant notoriety followed, and Harvard pulled the plug on the site within hours, according to Fast Company.
After being censured for purloining images from the student records, Zuckerberg set up a site that allowed the students themselves to upload their photos and personal information. Called thefacebook.com, it debuted on February 4, 2004, and proved instantly popular. Within months, other colleges were being included, and advertising money began to trickle in.
Facebook was registered as a Delaware corporation in July 2004. Zuckerberg had just finished his sophomore year and was a still a teenager. According to Fast Company, while staying in Palo Alto on summer vacation, Zuckerberg met Napster cofounder Sean Parker, who introduced him to Peter Thiel, the founder of PayPal. Thiel became an early investor in Facebook. Zuckerberg decided to take some time off from his studies to grow the new enterprise. Facebook exceeded one million users by the end of the year. It was, noted Fast Company, being run from rented rooms with open source (MySQL) software.
A Unique Model
According to the Economist, Zuckerberg saw himself as a kind of cartographer of human relationships. Facebook users communicating with each other could see how they were connected through other users, resulting in a "social graph." Part of Facebook's appeal was its exclusivity, although the budding enterprise soon grew beyond the Ivy League. To register with it, early users needed to provide an e-mail address with the ".edu" suffix designated for the world of academia.
Facebook later broadened its membership to include high school students and employees of certain large corporations. The aim was to allow recent alumni to maintain their connections and open the doors to the next generation. These changes seemed to go over well; the college age users understood wanting to remain on the site, which most used on a daily basis, after graduation, and many had younger relatives still in high school.
Embracing Web 2.0
Facebook added new features to stay relevant in the Web 2.0 world, the generation of interactive web sites designed to make it easy for users to share video, music, and other multimedia content. By the end of 2006, Facebook had worked out a program that allowed Facebook users easily to share links to videos and articles in the online publications of numerous new and old media companies. Facebook then invited hundreds of developers to write programs to enhance the web site. Within a month, a dozen of the applications had attracted a million users or more.
Not all the company's innovations were well received at first. One new feature introduced on September 5, 2006, caused a public relations debacle. This was a news feed that automatically registered changes on users' profiles and disseminated these tidbits to their friends. Although this involved only information that was freely available within individuals' networks, many protested the automatic gathering and distribution as too invasive. Programmers worked around the clock to strengthen privacy controls related to news feed items. A couple of months later, some paid advertising links were added into the feeds.
A Billion-Dollar-Plus Idea
Zuckerberg lined up $12.7 million in venture capital from Accel Partners in the spring of 2005, according to a profile of the founder in Fast Company. Another round of funding in the spring of 2006 added another $25 million. Social networks were the latest hot commodity for tech investors. Friendster had reportedly turned down a 2002 buyout offer from Google, only to watch others steal the spotlight. In 2005, News Corp. bought MySpace for $580 million; YouTube went to Google in late 2006 in a $1.5 billion deal.
Fast-growing Facebook was reckoned to be the second largest social networking site, although it had less than one-tenth the user base of MySpace's 100 million. In the summer of 2006, Yahoo! Inc. reportedly offered between $800 million and $1 billion to acquire Facebook. Media giant Viacom, Inc., had made an earlier bid worth $750 million. However, Zuckerberg, said to control 30 percent of shares, stubbornly refused to sell, believing the best was yet to come and likely expecting to fare better when the time came for an initial public offering. Others close to the company supported his optimistic assessment.
Facebook had already signed a five-year deal for Microsoft Corp. to supply banner advertising, a deal possibly worth hundreds of millions of dollars per year. Just as MySpace had overshadowed Friendster, in 2006 Facebook appeared to be outpacing MySpace's rate of growth. Nevertheless, a slew of potential competitors continued to emerge, each tailored to audiences ranging from teenagers to Wall Street traders.
Opening the Gates
Originally reserved for college students, Facebook widened its membership in stages. In September 2005, it allowed members to invite high school students into their networks. Several months later it opened the rolls to those with e-mail accounts at large employers of recent graduates. In September 2006, shortly after the news feed fiasco, Facebook opened membership to anyone with a legitimate e-mail address. With a measure of exclusivity removed, some observers wondered what would differentiate it from MySpace, the giant of social networking sites. Zuckerberg defended the move by pointing out that individual members still had control over who had access to their personal information. New members outside of institutions such as corporations or colleges were grouped into 500 regional networks.
The Value of Connections
Lending Club Corporation introduced a peer-to-peer lending service for Facebook in May 2007. It allowed members to request loans and fund others' requests. Around the same time, it began offering free classified advertising. Their value was enhanced by the site's built-in network of connections; members placing ads could decide whether they would be limited to close friends or entire networks. The value was obvious to anyone leery of conducting business with strangers.
By 2007, Facebook had more than 20 million registered users. There were a couple of hundred employees and revenues were said to be in the neighborhood of $100 million for the year. Though the privately owned company was tight-lipped about finances, hints in the media strongly suggested it was turning a profit.
Facebook ranked as the sixth or seventh largest social networking site. It was on top in some key metrics, according to comScore Media Metrix statistics quoted in Fast Company. It led the country in photo sharing, a capability at the heart of the Web 2.0 challenge. In 2007 the company signed up with Comcast to produce a webcast called the "Facebook Diaries," based on video contributed by users. Opening membership to the general public swelled the membership rolls and shifted the demographics away from the college age crowd. Interestingly, more than one-quarter of users were outside the United States.
Principal Competitors
MySpace Inc.; United Online, Inc.; YouTube, Inc.; Yahoo! Inc.; Google Inc.; craigslist, inc.; Friendster, Inc.
Further Reading
"Bidding for Facebook Continues; May Go It Alone," Online Reporter, September 23, 2006, pp. 10-11.
"Book Value; Face Value," Economist, July 21, 2007, p. 66.
Delaney, Kevin J., Rebecca Buckman, and Robert A. Guth, "Facebook, Riding a Web Trend, Flirts with Big-Money Deal," Wall Street Journal, Eastern ed., September 21, 2006, p. 1A.
Dempsey, John, "Comcast Has a New 'Face,'" Daily Variety, February 7, 2007, p. 5.
"Facebook Founder Apologizes in Privacy Flap," InternetWeek, September 8, 2006.
"Facebook Platform Ramps Up with 65 Developer Partners and 85 Applications for Facebook," Wireless News, May 25, 2007.
"Facebook Shares Share Link," Online Reporter, November 4, 2006, pp. 19, 22.
Fox, Justin, "You're Among Friends," Time, July 16, 2007, p. 57.
Hansell, Saul, "Site Previously for Students Will Be Opened to Others," New York Times, September 12, 2006, p. C8.
Klaasen, Abbey, "This 23-Year-Old Has Google Sweating; Mark Zuckerberg's Facebook Offers Something Search Doesn't--Distribution," Advertising Age, July 9, 2007, p. 1.
Lacy, Sara, "Facebook Learns from Its Fumble," Business Week Online, September 8, 2006.
------, "Facebook: Opening the Doors Wider," Business Week Online, September 12, 2006.
Levy, Steven, "Facebook Grows Up," Time, August 20, 2007.
Liedtke, Michael, "Build or Sell? Top-Dollar Sales Pose Dilemma for Internet Entrepreneurs," Grand Rapids Press, March 3, 2007, p. B6.
McArthur, Keith, "For Big Brands, a Different Kind of Face Time," Globe & Mail (Toronto), April 28, 2007, p. B3.
McGirt, Ellen, "Hacker. Dropout. CEO," Fast Company, May 2007, p. 74.
Morrissey, Brian, "Facebook Gives New Face to Online Ads," Brandweek, October 2, 2006, p. 11.
------, "Microsoft to Place Ads on Facebook," Adweek Online, August 23, 2006.
Rosenbush, Steve, "Facebook's Changing Fortunes," Business Week Online, November 1, 2006.
Sorkin, Andrew Ross, "The Dress Code Is Relaxed, but the Courting Is Intense," New York Times, November 10, 2006, p. C6.
Stone, Brad, "Facebook to Offer Free Classified Ads Online," New York Times, May 11, 2007, p. C3.
Vara, Vauhini, "Facebook Gets Help from Its Friends," Wall Street Journal, June 22, 2007, p. B1.
Warren, Jamin, and Vara Vauhini, "New Facebook Features Have Members in an Uproar," Wall Street Journal, September 7, 2006, p. B1.
Wolfe, Daniel, "Facebook Adds P-to-P Loans to Networking Site," American Banker, May 29, 2007, p. 17.
— Frederick C. Ingram
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From our Archives: Today's Highlights, May 14, 2008
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| URL | Facebook.com |
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| Type of site | Social networking service |
| Registration | Required |
| Available language(s) | Multilingual (70) |
| Users | 901 million[1] (active April 2012) |
| Owner | Facebook, Inc. |
| Created by | |
| Launched | February 4, 2004 |
| Alexa rank | |
| Revenue | Advertising |
| Current status | Active |
Facebook is a social networking service and website launched in February 2004, owned and operated by Facebook, Inc. [3] As of May 2012[update], Facebook has over 900 million active users, more than half of them using mobile devices.[4] Users must register before using the site, after which they may create a personal profile, add other users as friends, and exchange messages, including automatic notifications when they update their profile. 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". The name of the service stems from the colloquial name for the book given to students at the start of the academic year by some university administrations in the United States to help students get to know each other. Facebook allows any users who declare themselves to be at least 13 years old to become registered users of the site.[5]
Facebook was founded by Mark Zuckerberg with his college roommates and fellow students Eduardo Saverin, Dustin Moskovitz and Chris Hughes.[6] The website's membership was initially limited by the founders to Harvard students, but was expanded to other colleges in the Boston area, the Ivy League, and Stanford University. It gradually added support for students at various other universities before opening to high school students, and eventually to anyone aged 13 and over. However, according to a May 2011 Consumer Reports survey, there are 7.5 million children under 13 with accounts and 5 million under 10, violating the site's terms of service.[7]
A January 2009 Compete.com study ranked Facebook as the most used social networking service by worldwide monthly active users.[8] Entertainment Weekly included the site on its end-of-the-decade "best-of" list, saying, "How on earth did we stalk our exes, remember our co-workers' birthdays, bug our friends, and play a rousing game of Scrabulous before Facebook?"[9] Quantcast estimates Facebook has 138.9 million monthly unique U.S. visitors in May 2011.[10] According to Social Media Today, in April 2010 an estimated 41.6% of the U.S. population had a Facebook account.[11] Nevertheless, Facebook's market growth started to stall in some regions, with the site losing 7 million active users in the United States and Canada in May 2011.[12] Facebook is now getting into hardware business and is hoping to build its own smartphone by 2013.[13]
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Mark Zuckerberg wrote Facemash, the predecessor to Facebook, on October 28, 2003, while attending Harvard as a sophomore. According to The Harvard Crimson, the site was comparable to Hot or Not, and "used photos compiled from the online facebooks of nine houses, placing two next to each other at a time and asking users to choose the 'hotter' person".[14][15]
To accomplish this, Zuckerberg hacked into the protected areas of Harvard's computer network and copied the houses' private dormitory ID images. Harvard at that time did not have a student "facebook" (a directory with photos and basic information), though individual houses had been issuing their own paper facebooks since the mid-1980s. Facemash attracted 450 visitors and 22,000 photo-views in its first four hours online.[14][16]
The site was quickly forwarded to several campus group list-servers, but was shut down a few days later by the Harvard administration. Zuckerberg was charged by the administration with breach of security, violating copyrights, and violating individual privacy, and faced expulsion. Ultimately, the charges were dropped.[17] Zuckerberg expanded on this initial project that semester by creating a social study tool ahead of an art history final, by uploading 500 Augustan images to a website, with one image per page along with a comment section.[16] He opened the site up to his classmates, and people started sharing their notes.
The following semester, Zuckerberg began writing code for a new website in January 2004. He was inspired, he said, by an editorial in The Harvard Crimson about the Facemash incident.[18] On February 4, 2004, Zuckerberg launched "Thefacebook", originally located at thefacebook.com.[19]
Six days after the site launched, three Harvard seniors, Cameron Winklevoss, Tyler Winklevoss, and Divya Narendra, accused Zuckerberg of intentionally misleading them into believing he would help them build a social network called HarvardConnection.com, while he was instead using their ideas to build a competing product.[20] The three complained to the Harvard Crimson, and the newspaper began an investigation. The three later filed a lawsuit against Zuckerberg, subsequently settling.[21]
Membership was initially restricted to students of Harvard College, and within the first month, more than half the undergraduate population at Harvard was registered on the service.[22] Eduardo Saverin (business aspects), Dustin Moskovitz (programmer), Andrew McCollum (graphic artist), and Chris Hughes soon joined Zuckerberg to help promote the website. In March 2004, Facebook expanded to Stanford, Columbia, and Yale.[23] It soon opened to the other Ivy League schools, Boston University, New York University, MIT, and gradually most universities in Canada and the United States.[24][25]
Facebook was incorporated in mid-2004, and the entrepreneur Sean Parker, who had been informally advising Zuckerberg, became the company's president.[26] In June 2004, Facebook moved its base of operations to Palo Alto, California.[23] It received its first investment later that month from PayPal co-founder Peter Thiel.[27] The company dropped The from its name after purchasing the domain name facebook.com in 2005 for $200,000.[28]
| Date | Users (in millions) |
Days later | Monthly growth[N 2] |
|---|---|---|---|
| August 26, 2008 | 100[29] | 1,665 | 178.38% |
| April 8, 2009 | 200[30] | 225 | 13.33% |
| September 15, 2009 | 300[31] | 160 | 9.38% |
| February 5, 2010 | 400[32] | 143 | 6.99% |
| July 21, 2010 | 500[33] | 166 | 4.52% |
| January 5, 2011 | 600[34][N 3] | 168 | 3.57% |
| May 30, 2011 | 700[35] | 145 | 3.45% |
| September 22, 2011 | 800[36] | 115 | 3.73% |
| April 24, 2012 | 900[37] | 215 | 1.74% |
Facebook launched a high-school version in September 2005, which Zuckerberg called the next logical step.[38] At that time, high-school networks required an invitation to join.[39] Facebook later expanded membership eligibility to employees of several companies, including Apple Inc. and Microsoft.[40] Facebook was then opened on September 26, 2006, to everyone of age 13 and older with a valid email address.[41][42]
On October 24, 2007, Microsoft announced that it had purchased a 1.6% share of Facebook for $240 million, giving Facebook a total implied value of around $15 billion.[43] Microsoft's purchase included rights to place international ads on Facebook.[44] In October 2008, Facebook announced that it would set up its international headquarters in Dublin, Ireland.[45] In September 2009, Facebook said that it had turned cash-flow positive for the first time.[46] In November 2010, based on SecondMarket Inc., an exchange for shares of privately held companies, Facebook's value was $41 billion (slightly surpassing eBay's) and it became the third largest U.S. Web company after Google and Amazon.[47]
Traffic to Facebook increased steadily after 2009. More people visited Facebook than Google for the week ending March 13, 2010.[48]
In March 2011 it was reported that Facebook removes approximately 20,000 profiles from the site every day for various infractions, including spam, inappropriate content and underage use, as part of its efforts to boost cyber security.[49]
In early 2011, Facebook announced plans to move to its new headquarters, the former Sun Microsystems campus in Menlo Park, California.[50][51]
Release of statistics by DoubleClick showed that Facebook reached one trillion pageviews in the month of June 2011, making it the most visited website in the world.[52] It should however be noted that Google and some of its selected websites are not counted in the DoubleClick rankings. According to the Nielsen Media Research study, released in December 2011, Facebook is the second most accessed website in the US.[53]
In March 2012 Facebook announced App Center, an online mobile store which sells applications that connect to Facebook. The store will be available to iPhone, Android and mobile web users.[54] In April, Facebook bought the application Instagram for US$1 billion.[55]
In early May of 2012, Facebook acquired social discovery start-up Glancee.[56]
Facebook, Inc. held an initial public offering on May 17, 2012, negotiating a share price of $38 apiece, valuing the company at $104 billion, the largest valuation to date for a newly public company.[57] After the IPO, Zuckerberg will retain a 22% ownership share in Facebook and will own 57% of the voting shares.[58] The IPO raised $16 billion, making it the third largest in U.S. history.[59][60] The shares began to be traded on May 18, and though the stock struggled to stay above the IPO price for most of the day, it set a new record for trading volume of an IPO.[61] Days after the IPO, regulators from the U.S. Securities and Exchange Commission started investigating the IPO handing, after claims that Facebook’s weakened growth forecasts were not disclosed to all the shareholders.[62] At end of May, the stock's losses to 26 percent set to $28.19 as the worst-performing large initial public offering in the past decade seems to much stock issued, while a lot of people really had no intention of holding the stocks.[63]
Users can create profiles with photos, lists of personal interests, contact information, and other personal information. Users can communicate with friends and other users through private or public messages and a chat feature. They can also create and join interest groups and "like pages" (called "fan pages" until April 19, 2010), some of which are maintained by organizations as a means of advertising.[64] A 2012 Pew Internet and American Life study identified that between 20–30% of Facebook users are "power users" who frequently link, poke, post and tag themselves and others.[65]
To allay concerns about privacy, Facebook enables users to choose their own privacy settings and choose who can see specific parts of their profile.[66] The website is free to users, and generates revenue from advertising, such as banner ads.[67] Facebook requires a user's name and profile picture (if applicable) to be accessible by everyone. Users can control who sees other information they have shared, as well as who can find them in searches, through their privacy settings.[68]
The media often compares Facebook to MySpace, but one significant difference between the two Web sites is the level of customization.[69] Another difference is Facebook's requirement that users give their true identity, a demand that MySpace does not make.[70] MySpace allows users to decorate their profiles using HTML and Cascading Style Sheets (CSS), while Facebook allows only plain text.[71] Facebook has a number of features with which users may interact. They include the Wall, a space on every user's profile page that allows friends to post messages for the user to see;[72] Pokes, which allows users to send a virtual "poke" to each other (a notification then tells a user that they have been poked);[73] Photos, where users can upload albums and photos;[74] and Status, which allows users to inform their friends of their whereabouts and actions.[75] Depending on privacy settings, anyone who can see a user's profile can also view that user's Wall. In July 2007, Facebook began allowing users to post attachments to the Wall, whereas the Wall was previously limited to textual content only.[72]
On September 6, 2006, a News Feed was announced, which appears on every user's homepage and highlights information including profile changes, upcoming events, and birthdays of the user's friends.[76] This enabled spammers and other users to manipulate these features by creating illegitimate events or posting fake birthdays to attract attention to their profile or cause.[77] Initially, the News Feed caused dissatisfaction among Facebook users; some complained it was too cluttered and full of undesired information, others were concerned that it made it too easy for others to track individual activities (such as relationship status changes, events, and conversations with other users).[78]
In response, Zuckerberg issued an apology for the site's failure to include appropriate customizable privacy features. Since then, users have been able to control what types of information are shared automatically with friends. Users are now able to prevent user-set categories of friends from seeing updates about certain types of activities, including profile changes, Wall posts, and newly added friends.[79]
On February 23, 2010, Facebook was granted a patent[80] on certain aspects of its News Feed. The patent covers News Feeds in which links are provided so that one user can participate in the same activity of another user.[81] The patent may encourage Facebook to pursue action against websites that violate its patent, which may potentially include websites such as Twitter.[82]
One of the most popular applications on Facebook is the Photos application, where users can upload albums and photos.[83] Facebook allows users to upload an unlimited number of photos, compared with other image hosting services such as Photobucket and Flickr, which apply limits to the number of photos that a user is allowed to upload. During the first years, Facebook users were limited to 60 photos per album. As of May 2009, this limit has been increased to 200 photos per album.[84][85][86][87]
Privacy settings can be set for individual albums, limiting the groups of users that can see an album. For example, the privacy of an album can be set so that only the user's friends can see the album, while the privacy of another album can be set so that all Facebook users can see it. Another feature of the Photos application is the ability to "tag", or label, users in a photo. For instance, if a photo contains a user's friend, then the user can tag the friend in the photo. This sends a notification to the friend that they have been tagged, and provides them a link to see the photo.[88]
Facebook Notes was introduced on August 22, 2006, a blogging feature that allowed tags and embeddable images. Users were later able to import blogs from Xanga, LiveJournal, Blogger, and other blogging services.[41] During the week of April 7, 2008, Facebook released a Comet-based[89] instant messaging application called "Chat" to several networks,[90] which allows users to communicate with friends and is similar in functionality to desktop-based instant messengers.
Facebook launched Gifts on February 8, 2007, which allows users to send virtual gifts to their friends that appear on the recipient's profile. Gifts cost $1.00 each to purchase, and a personalized message can be attached to each gift.[91][92] On May 14, 2007, Facebook launched Marketplace, which lets users post free classified ads.[93] Marketplace has been compared to Craigslist by CNET, which points out that the major difference between the two is that listings posted by a user on Marketplace are seen only by users in the same network as that user, whereas listings posted on Craigslist can be seen by anyone.[94]
On July 20, 2008, Facebook introduced "Facebook Beta", a significant redesign of its user interface on selected networks. The Mini-Feed and Wall were consolidated, profiles were separated into tabbed sections, and an effort was made to create a "cleaner" look.[95] After initially giving users a choice to switch, Facebook began migrating all users to the new version starting in September 2008.[96] On December 11, 2008, it was announced that Facebook was testing a simpler signup process.[97]
On June 13, 2009, Facebook introduced a "Usernames" feature, whereby pages can be linked with simpler URLs such as http://www.facebook.com/facebook instead of http://www.facebook.com/profile.php?id=20531316728.[98] Many new smartphones offer access to Facebook services through either their Web browsers or applications. An official Facebook application is available for the operating systems Android, iOS, and webOS. Nokia and Research In Motion both provide Facebook applications for their own mobile devices. More than 425 million active users access Facebook through mobile devices across 200 mobile operators in 60 countries.[99]
On November 15, 2010, Facebook announced a new "Facebook Messages" service. In a media event that day, CEO Mark Zuckerberg said, "It's true that people will be able to have an @facebook.com email addresses, but it's not email". The launch of such a feature had been anticipated for some time before the announcement, with some calling it a "Gmail killer". The system, to be available to all of the website's users, combines text messaging, instant messaging, emails, and regular messages, and will include privacy settings similar to those of other Facebook services. Codenamed "Project Titan", Facebook Messages took 15 months to develop.[100][101]
In February 2011, Facebook began to use the hCalendar microformat to mark up events, and the hCard microformat for the events' venues, enabling the extraction of details to users' own calendar or mapping applications.[102]
Since April 2011 Facebook users have had the ability to make live voice calls via Facebook Chat, allowing users to chat with others from all over the world. This feature, which is provided free through T-Mobile's new Bobsled service, lets the user add voice to the current Facebook Chat as well as leave voice messages on Facebook.[103]
On July 6, 2011, Facebook launched its video calling services using Skype as its technology partner. It allows one to one calling using a Skype Rest API.[104]
On September 14, 2011, Facebook launched a Subscribe button. The feature allows for users to follow public updates, and these are the people most often broadcasting their ideas.[105] There were major modifications that the site released on September 22, 2011.[106]
As reported by TechCrunch on February 15, 2012, Facebook is introducing ‘Verified Account’ concept like that of Twitter & Google+. Though as of March 3, 2012, verified accounts don’t get any badges or denotations, but such accounts will get more priority in ‘Subscription Suggestions’ of Facebook.[107]
On March 6, 2012, Facebook officially launched Messenger for Windows, which gives users of Windows 7 access to some Facebook services without using a web browser.[108]
According to comScore, an internet marketing research company, Facebook collects as much data from its visitors as Google and Microsoft, but considerably less than Yahoo!.[109] In 2010, the security team began expanding its efforts to reduce the risks to users' privacy,[110] but privacy concerns remain. On November 6, 2007, Facebook launched Facebook Beacon, which was an ultimately failed attempt to advertise to friends of users using the knowledge of what purchases friends made. As of March 2012, Facebook's usage of its user data is under close scrutiny.[111]
On November 29, 2011, Facebook agreed to settle US Federal Trade Commission charges that it deceived consumers by failing to keep privacy promises.[112]
Facebook is built in PHP which is compiled with HipHop for PHP, a source code transformer built by Facebook engineers that turns PHP into C++. The deployment of HipHop reportedly reduced average CPU consumption on Facebook servers by 50%.[113]
Facebook is developed as one monolithic application. According to an interview in 2012 with Chuck Rossi, a build engineer at Facebook, Facebook compiles into a 1.5 GB binary blob which is then distributed to the servers using a custom BitTorrent-based release system. Rossi stated that it takes approximately 15 minutes to build and 15 minutes to release to the servers. The build and release process is zero downtime and new changes to Facebook are rolled out daily.[113]
According to comScore, Facebook is the leading social networking site based on monthly unique visitors, having overtaken main competitor MySpace in April 2008.[115] ComScore reports that Facebook attracted 130 million unique visitors in May 2010, an increase of 8.6 million people.[116] According to Alexa, the website's ranking among all websites increased from 60th to 7th in worldwide traffic, from September 2006 to September 2007, and is currently 2nd.[117] Quantcast ranks the website 2nd in the U.S. in traffic,[118] and Compete.com ranks it 2nd in the U.S.[119] The website is the most popular for uploading photos, with 50 billion uploaded cumulatively.[120] In 2010, Sophos's "Security Threat Report 2010" polled over 500 firms, 60% of which responded that they believed that Facebook was the social network that posed the biggest threat to security, well ahead of MySpace, Twitter, and LinkedIn.[110]
Facebook is the most popular social networking site in several English-speaking countries, including Canada,[121] the United Kingdom,[122] and the United States.[123][124][125][126] In regional Internet markets, Facebook penetration is highest in North America (69 percent), followed by Middle East-Africa (67 percent), Latin America (58 percent), Europe (57 percent), and Asia-Pacific (17 percent).[127]
The website has won awards such as placement into the "Top 100 Classic Websites" by PC Magazine in 2007,[128] and winning the "People's Voice Award" from the Webby Awards in 2008.[129] In a 2006 study conducted by Student Monitor, a New Jersey-based company specializing in research concerning the college student market, Facebook was named the second most popular thing among undergraduates, tied with beer and only ranked lower than the iPod.[130]
On March 2010, Judge Richard Seeborg issued an order approving the class settlement in Lane v. Facebook, Inc., the class action lawsuit arising out of Facebook's Beacon program.
In 2010, Facebook won the Crunchie "Best Overall Startup Or Product" for the third year in a row[131] and was recognized as one of the "Hottest Silicon Valley Companies" by Lead411.[132] However, in a July 2010 survey performed by the American Customer Satisfaction Index, Facebook received a score of 64 out of 100, placing it in the bottom 5% of all private-sector companies in terms of customer satisfaction, alongside industries such as the IRS e-file system, airlines, and cable companies. The reasons why Facebook scored so poorly include privacy problems, frequent changes to the website's interface, the results returned by the News Feed, and spam.[133]
In December 2008, the Supreme Court of the Australian Capital Territory ruled that Facebook is a valid protocol to serve court notices to defendants. It is believed to be the world's first legal judgement that defines a summons posted on Facebook as legally binding.[134] In March 2009, the New Zealand High Court associate justice David Gendall allowed for the serving of legal papers on Craig Axe by the company Axe Market Garden via Facebook.[135][136] Employers (such as Virgin Atlantic Airways) have also used Facebook as a means to keep tabs on their employees and have even been known to fire them over posts they have made.[137]
By 2005, the use of Facebook had already become so ubiquitous that the generic verb "facebooking" had come into use to describe the process of browsing others' profiles or updating one's own.[138] In 2008, Collins English Dictionary declared "Facebook" as its new Word of the Year.[139] In December 2009, the New Oxford American Dictionary declared its word of the year to be the verb "unfriend", defined as "To remove someone as a 'friend' on a social networking site such as Facebook. As in, 'I decided to unfriend my roommate on Facebook after we had a fight.'"[140]
In early 2010, Openbook was established, an avowed parody (and privacy advocacy) website[141] that enables text-based searches of those Wall posts that are available to "Everyone", i.e. to everyone on the Internet.
Writers for The Wall Street Journal found in 2010 that Facebook apps were transmitting identifying information to "dozens of advertising and Internet tracking companies". The apps used an HTTP referrer which exposed the user's identity and sometimes their friends'. Facebook said, "We have taken immediate action to disable all applications that violate our terms".[142]
In May 2012, the countries with the most Facebook users were:[143]
All of the above total 309 million members or about 38.6 percent of Facebook's 800 million worldwide members.[144]
Facebook has met with controversies. It has been blocked intermittently in several countries including the People's Republic of China,[145] Iran,[146] Uzbekistan,[147] Pakistan,[148] Syria,[149] and Bangladesh on different bases. For example, it was banned in many countries of the world on the basis of allowed content judged as anti-Islamic and containing religious discrimination. It has also been banned at many workplaces to prevent employees from using it during work hours.[150] The privacy of Facebook users has also been an issue, and the safety of user accounts has been compromised several times. Facebook has settled a lawsuit regarding claims over source code and intellectual property.[151] In May 2011 emails were sent to journalists and bloggers making critical allegations about Google's privacy policies; however it was later discovered that the anti-Google campaign, conducted by PR giant Burson-Marsteller, was paid for by Facebook in what CNN referred to as "a new level skullduggery" and which Daily Beast called a "clumsy smear".[152]
In July 2011 German authorities began to discuss the prohibition of events organized on Facebook. The decision is based on several cases of overcrowding by people not originally invited.[153][154] In one instance, 1,600 "guests" attended the 16th birthday party for a Hamburg girl who accidentally posted the invitation for the event as public. After reports of overcrowding, more than a hundred police were deployed for crowd control. A policeman was injured and eleven participants were arrested for assault, property damage and resistance to authorities.[155] In another unexpectedly overcrowded event, 41 young people were arrested and at least 16 injured.[156]
In May 2011, HCL Technologies announced that approximately 50% of British employers had banned Facebook from the workplace.[157] Facebook has been blamed for lower worker productivity and has been called a national obsession by anti-Facebook blogs such as Facebook Detox.
A 2011 study in the online journal First Monday, "Why Parents Help Their Children Lie to Facebook About Age: Unintended Consequences of the Children's Online Privacy Protection Act," examines how parents consistently enable children as young as 10 years old to sign up for accounts, directly violating Facebook's policy banning young visitors. This policy technically allows Facebook to avoid conflicts with the 1998 Children's Online Privacy Protection Act (COPPA), requiring that minors aged 13 or younger gain explicit parental consent to access commercial websites. Of the more than 1,000 households surveyed for the study, more than three-quarters (76%) of parents reported that their child joined Facebook when she was younger than 13, the minimum age in the site's terms of service. The study notes that, in response to widespread reports of underage users, a Facebook executive has said that "Facebook removes 20,000 people a day, people who are underage." The study's authors also note, "Indeed, Facebook takes various measures both to restrict access to children and delete their accounts if they join." The findings of the study raise questions primarily about the shortcomings of federal law, but also implicitly continue to raise questions about whether or not Facebook does enough to publicize its terms of service with respect to minors. Only 53% of parents said they were aware that Facebook has a minimum signup age; 35% of these parents believe that the minimum age is a site recommendation (not a condition of site use), or thought the signup age was 16 or 18, and not 13.[158]
In November 2011, several Facebook users reported that their accounts were hacked and their profile pictures were replaced with pornographic images. For more than a week, users' news feeds were spammed with pornographic, violent and sexual contents. It has been reported that more than 200,000 accounts in Bangalore, India were hacked. Facebook has denied the claims, citing that "safety of the users was on the top of their priority list".[159][160]
There has been much user discontent over Facebook's mandatory changeover to the new Timeline profile. Some Facebook users reported discontent with having many Facebook status updates and photos from the past easily visible.[161][162]
According to a leading counter terrorism expert,terrorists are using Facebook for hiring loners from western nations like Australia.[163]
In April 2011, Facebook launched a new portal for marketers and creative agencies to help them develop brand promotions on Facebook.[164] The company began its push by inviting a select group of British advertising leaders to meet Facebook's top executives at an "influencers' summit" in February 2010. Facebook has now been involved in campaigns for True Blood, American Idol, and Top Gear.[165] News and media outlets such as the Washington Post,[166] Financial Times[167] and ABC News[168] have used aggregated Facebook fan data to create various infographics and charts to accompany their articles.
Facebook has affected the social life and activity of people in various ways. With its availability on many mobile devices, Facebook allows users to continuously stay in touch with friends, relatives and other acquaintances wherever they are in the world, as long as there is access to the Internet. It can also unite people with common interests and/or beliefs through groups and other pages, and has been known to reunite lost family members and friends because of the widespread reach of its network. One such reunion was between John Watson and the daughter he had been seeking for 20 years. They met after Watson found her Facebook profile.[169] Another father-daughter reunion was between Tony Macnauton and Frances Simpson, who had not seen each other for nearly 48 years.[170]
Some argue that Facebook is beneficial to one's social life because they can continuously stay in contact with their friends and relatives, while others say that it can cause increased antisocial tendencies because people are not directly communicating with each other. Some studies have named Facebook as a source of problems in relationships. Several news stories have suggested that using Facebook can lead to higher instances of divorce and infidelity, but the claims have been questioned by other commentators.[171][172]
Facebook's role in the American political process was demonstrated in January 2008, shortly before the New Hampshire primary, when Facebook teamed up with ABC and Saint Anselm College to allow users to give live feedback about the "back to back" January 5 Republican and Democratic debates.[173][174][175] Charles Gibson moderated both debates, held at the Dana Center for the Humanities at Saint Anselm College. Facebook users took part in debate groups organized around specific topics, register to vote, and message questions.[176]
ABCNews.com reported in 2012 that the Facebook fanbases of political candidates have relevance for the election campaign, including:
Over a million people installed the Facebook application "US Politics on Facebook" in order to take part, and the application measured users' responses to specific comments made by the debating candidates.[177] This debate showed the broader community what many young students had already experienced: Facebook as a popular and powerful new way to interact and voice opinions. An article by Michelle Sullivan of Uwire.com illustrates how the "Facebook effect" has affected youth voting rates, support by youth of political candidates, and general involvement by the youth population in the 2008 election.[178]
In February 2008, a Facebook group called "One Million Voices Against FARC" organized an event in which hundreds of thousands of Colombians marched in protest against the Revolutionary Armed Forces of Colombia, better known as the FARC (from the group's Spanish name).[179] In August 2010, one of North Korea's official government websites and the official news agency of the country, Uriminzokkiri, joined Facebook.[180]
In 2011 there was a controversial ruling by French government to uphold a 1992 decree which stipulates that commercial enterprises should not be promoted on news programs. President Nicolas Sarkozy's colleagues have agreed that it will enforce a law so that the word "Facebook" will not be allowed to be spoken on the television or on the radio.[181]
In 2011, Facebook filed paperwork with the Federal Election Commission to form a political action committee under the name FB PAC.[182] In an email to The Hill, a spokesman for Facebook said "FB PAC will give our employees a way to make their voice heard in the political process by supporting candidates who share our goals of promoting the value of innovation to our economy while giving people the power to share and make the world more open and connected."[183]
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