CIS 2200 Ch 8: Facebook

Social Graph

Digital map of relationships between users

Facebook Platform

System allowing outside developers to build apps on Facebook

Network Effects

Product becomes more valuable as more users join

Switching Costs

Difficulty users face when changing platforms

User-Generated Content

Content created by users instead of companies

Privacy Concerns

Risks involving collection and use of personal data

Advertising Model

Revenue strategy based on displaying ads

Targeted Advertising

Ads customized using user data

Engagement

Level of user interaction on a platform

Platform Economy

Business model connecting users and developers

API

Application Programming Interface enabling systems to connect

Viral Growth

Rapid expansion caused by user sharing

Data Mining

Extracting insights from large datasets

Freemium Model

Free service with optional paid features

Monetization

Process of generating revenue from users