Facebook's New Privacy Policy - Satisfying Users While Making Commercial Sense



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Code : COS0111

Year :
2015

Case Length : 11 pages

Industry :Online Social Networking

Organization:Facebook Inc.

Period : 2004-2014

Region : United States

Teaching Note: Available

Structured Assignment : Not Available

Countries : United States

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Abstract:Under Facebook's new privacy policy announced in January 2015, only focused content was to be allowed into the news feed section of the Facebook account of its users. This change in policy was a result of a survey conducted by Facebook and was aimed at satisfying its users. However, market analysts felt that this move would stifle many businesses, especially small enterprises that promoted their businesses at minimal cost on the Facebook platform. With the change, these businesses would have to pay and advertise to reach Facebook's large user base. The case study covers the revenue model of Facebook and the impact of its new policy on businesses. It facilitates a debate on the reason for the new policy. The importance of social media marketing and the emphasis on focused promotion by the marketers is also brought out through the case.

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Pedagogical Objectives:
This case is designed to enable students:

  • Understand social media marketing.
  • Dissect Facebook's business model and the role of advertising and promotion in its business model.
  • Bring out the role of advertising as a source of revenue for Facebook
  • Justify the importance of user satisfaction and user base for Facebook

    Keywords : Facebook, Privacy Policy, User Base, Advertising, Promotional Posts, Social Media Marketing, Online Social Networking, Small Businesses, Large Businesses, Emerging Advertising Opportunities.

    Contents :
    » INTRODUCTION
    » BACKGROUND NOTE
    » ADVERTISING & PROMOTION ON FACEBOOK
    » USER INTERACTION
    » IMPACT OF NEW POLICY
    » OPPORTUNITIES & CHALLENGES
    » EXHIBITS


    Case Introduction >>


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