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Facing up to Facebook

Summary: despite a >500 million user base and global media hype, Facebook needs more revenues than advertising can bring, and sees communications as a key area to target as its deal with Skype has shown. Telco 2.0's detailed analysis of Facebook's business model and strategy.

Telco 2.0's MD and Chief Strategist provides three audio presentations on Facebook:

  • Part 1 - Introduction and Facebook's Current Performance (available to everyone below);
  • Part 2 - Facebook's Current Business Model Constraints (Members only, here);
  • Part 3 - Facebook's Strategy, Skills and Intentions (Members only, here).

The presentations cover:
  • Current performance and valuation: User and revenue growth; Valuation comparisons with other companies: per user, per revenue;
  • Business model: Sources of revenue - Paid-for, Self-service advertising, Engagement advertising;
  • Comparisons with Google;
  • Platform aspirations and the social graph;
  • Privacy issues;
  • Strategy: Horizontal play;
  • Communications play: ‘Modern Messaging System’ and Skype;
  • Key (communications) skills;
  • Future intentions: Immediate & Medium-term.

Members can also download a copy of the slide deck here. Non members, please see here to subscribe, call +44 (0) 207 247 5003, or email contact@telco2.net. There's also more on adjacent player strategies at our AMERICAS, EMEA and APAC Executive Brainstorms and Best Practice Live! virtual events.