difference between the two Web sites is the level of customization.[270] Another difference is Facebook's requirement that users give their true identity, a demand that MySpace does not make.[271] MySpace allows users to decorate their profiles using HTML and Cascading Style Sheets (CSS), while Facebook allows only plain text.[272] 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;[273] Pokes, which allows users to send a virtual "poke" to each other (a notification then tells a user that he or she has been poked);[274] Photos, that allows users to upload albums and photos;[275] and Status, which allows users to inform their friends of their whereabouts and actions.[276] Facebook also allows users to tag various people in photographs. 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.[273] Facebook also differs from Myspace in the form of advertising used. Facebook uses advertising in the form of banner ads, referral marketing, and games. Myspace, on the other hand, uses Google and AdSense.[277] There is also a difference in the userbase of each site. MySpace, initially, was much more popular with high school students, while Facebook was more popular among college students. A study by the American firm Nielsen Claritas showed that Facebook users are more inclined to use other professional networking sites, such as LinkedIn, than Myspace users.[277]
Privacy
PRISM: a clandestine surveillance program under which the NSA collects user data from companies like Facebook and Yahoo!.[278]
Facebook enables users to choose their own privacy settings and choose who can see specific parts of their profile.[279] The website is free to its users and generates revenue from advertising, such as banner ads.[280] 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.[281]
On November 6, 2007, Facebook launched Facebook Beacon, which was a part of Facebook's advertisement system until it was discontinued in 2009. Its purpose was to allow targeted advertisements and allowing users to share their activities with their friends.
In 2010, Facebook's security team began expanding its efforts to reduce the risks to users' privacy,[282] but privacy concerns remain.[283]
Since 2010, the National Security Agency has been taking publicly posted profile information from Facebook, among other social media services, user profiles to discover who they interact with.[284]
On November 29, 2011, Facebook settled Federal Trade Commission charges that it deceived consumers by failing to keep privacy promises.[285]
In August 2013 High-Tech Bridge published a study showing that links included in Facebook messaging service messages were being accessed by Facebook.[286] In January 2014 two users filed a lawsuit against Facebook alleging that their privacy had been violated by this practice.[287]
Facebook Bug Bounty Program
A Facebook "White Hat" debit card, given to researchers who report security bugs.
On July 29, 2011, Facebook announced its Bug Bounty Program in which security researchers will be paid a minimum of $500 for reporting security holes on Facebook's website. Facebook's Whitehat page for security researchers says: "If you give us a reasonable time to respond to your report before making any information public and make a good faith effort to avoid privacy violations, destruction of data, and interruption or degradation of our service during your research, we will not bring any lawsuit against you or ask law enforcement to investigate you."[288][289]
Facebook started paying researchers who find and report security bugs by issuing them custom branded "White Hat" debit cards that can be reloaded with funds each time the researchers discover new flaws. "Researchers who find bugs and security improvements are rare, and we value them and have to find ways to reward them," Ryan McGeehan, former manager of Facebook's security response team, told CNET in an interview. "Having this exclusive black card is another way to recognize them. They can show up at a conference and show this card and say 'I did special work for Facebook.'"[290]
India, which has the second largest number of bug hunters in the world,[291] tops the Facebook Bug Bounty Program with the largest number of valid bugs. "Researchers in Russia earned the highest amount per report in 2013, receiving an average of $3,961 for 38 bugs. India contributed the largest number of valid bugs at 136, with an average reward of $1,353. The U.S. reported 92 issues and averaged $2,272 in rewards. Brazil and the UK were third and fourth by volume, with 53 bugs and 40 bugs, respectively, and average rewards of $3,792 and $2,950", Facebook quoted in a post.[292]
Reception
Most popular social networking sites by country
Facebook
Twitter
VKontakte
QZone
Odnoklassniki
Facenama
no data
User growth
CEO Mark Zuckerberg announced in August 2008 that Facebook had passed 100 million registered users.[293] This increased to 150 million "active" users in January 2009. Stan Schroeder of Mashable questioned how the measurement of "active" was made, though acknowledging that "it probably means that users who've just created an account which sits idle for a long period of time aren't included".[294] The number of users continued to grow, reaching 250 million in July 2009,[295] 300 million in September 2009,[296] 400 million in February 2010,[297] and 500 million in July 2010.[48] According to the company's data at the July 2010 announcement, half of the site's membership used Facebook daily, for an average of 34 minutes, while 150 million users accessed the site by mobile. A company representative called the milestone a "quiet revolution."[49]
Mark Zuckerberg announced to the media at the start of October 2012 that Facebook had passed the monthly active users mark of one billion.[83][298] The company's data also revealed 600 million mobile users, 219 billion photo uploads, and 140 billion friend connections.[84] This continued to grow, reaching 1.19 billion monthly active users in October 2013,[299] 1.44 billion users in April 2015, of which 1.25 billion were mobile users,[300] 1.71 billion users in July 2016,[301] 1.94 billion users in March 2017,[302] and ultimately 2 billion users in June 2017.[11][12]
In November 2015, after skepticism about the accuracy of its "monthly active users" measurement, Facebook changed its definition of an "active user", now defining it as a logged-in member who visits the Facebook site through the web browser or mobile app, or uses the Facebook Messenger app, in the last 30 days of the date of measurement. This excludes the use of third-party services with Facebook integration, which was previously counted.[303]
Facebook popularity. Active users of Facebook increased from just a million in 2004 to over 750 million in 2011.[304]
Population pyramid of Facebook users by age as of January 1, 2010[305]
Statistics
According to analytics firm comScore, Facebook is the leading social networking site based on monthly unique visitors, having overtaken main competitor MySpace in April 2008.[306][307] comScore reported that Facebook attracted over 130 million unique visitors in May 2010, an increase of 8.6 million people.[308] According to third-party web analytics providers, Alexa and SimilarWeb, Facebook is ranked second and first globally respectively, it is the highest-read social network on the Web, with over 20 billion visitors per month, as of 2015.[309][310][311] SimilarWeb, Quantcast, and Compete.com all rank the website 2nd in the U.S. in traffic.[310][312][313] The website is the most popular for uploading photos, cumulatively with 50 billion uploaded.[314] In 2010, Sophos's "Security Threat Report 2010" polled over 500 firms, 60% of which responded that they believed Facebook was the social network that "posed the biggest threat to security," well ahead of MySpace, Twitter, and LinkedIn.[282]
Facebook is the most popular social networking site in several English-speaking countries, including Canada,[315] the United Kingdom,[316] and the United States.[317][318][319] However, Facebook still receives limited adoption in countries such as Japan, where domestically created social networks are still largely preferred.[320] In regional Internet markets, penetration on Facebook 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).[321] Some of the top competitors were listed in 2007 by Mashable.[322]
Awards and recognition
The website has won awards such as placement into the "Top 100 Classic Websites" by PC Magazine in 2007,[323] and winning the "People's Voice Award" from the Webby Awards in 2008.[324] In a 2006 study conducted by Student Monitor, a 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.[325]
In 2010, Facebook won the Crunchie "Best Overall Startup Or Product" award[326] for the third year in a row.[327] 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.[328]
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.[329] 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.[330][331] Employers 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.[332]
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.[333] In 2008, Collins English Dictionary declared "Facebook" as its new Word of the Year.[334] 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.[335]
Criticisms and controversies
Main article: Criticism of Facebook
Graffiti in Berlin of Facebook founder Mark Zuckerberg. The caption is a reference to George Orwell's novel Nineteen Eighty-Four.
Facebook's market dominance has led to international media coverage and significant reporting of its shortcomings. Notable issues include Internet privacy, such as its widespread use of a "like" button on third-party websites tracking users,[336][337] possible indefinite records of user information,[338] automatic facial recognition software,[339][340] and its role in the workplace, including employer-employee account disclosure.[341]
The use of Facebook can have psychological effects, including feelings of jealousy[342][343] and stress,[344][345] a lack of attention,[346] and social media addiction, in some cases comparable to drug addiction.[347][348]
Facebook's company tactics have also received prominent coverage, including electricity usage,[349] tax avoidance,[350] real-name user requirement policies,[351] censorship,[352][353] and its involvement in the United States PRISM surveillance program.[354]
Due to allowing users to publish material by themselves, Facebook has come under scrutiny for the amount of freedom it gives users, including copyright and intellectual property infringement,[355] hate speech,[356][357] incitement of rape[358] and terrorism,[359][360] fake news,[361][362][363] and crimes, murders and violent incidents live-streamed through its Facebook Live functionality.[364][365][366]
Facebook has been banned by several governments, including Syria,[367] China,[368] and Iran.[369] Facebook worked on special censorship software so it could potentially accommodate censorship demands in Communist-controlled China.[370]
The company has also been subject to multiple litigation cases over the years,[371][372][373][374] with its most prominent case concerning allegations that CEO Mark Zuckerberg broke an oral contract with Cameron Winklevoss, Tyler Winklevoss, and Divya Narendra to build the then-named "HarvardConnection" social network in 2004, instead allegedly opting to steal the idea and code to launch Facebook months before HarvardConnection began.[375][376][377] The original lawsuit was eventually settled in 2009, with Facebook paying approximately $20 million in cash and 1.25 million shares.[378][379] A new lawsuit in 2011 was dismissed.[380]
On 5 November 2017, the Paradise Papers, a set of confidential electronic documents relating to offshore investment, revealed that Russian state organizations with ties to Vladimir Putin pursued between 2009 and 2011 large investments in Facebook and Twitter via an intermediary—Russian-American entrepreneur Yuri Milner, who befriended Facebook founder Mark Zuckerberg[381] and was a business associate of Jared Kushner, President Donald Trump's son-in-law.[382] According to The Express Tribune, Facebook is among the corporations that "avoided billions of dollars in tax using offshore companies."[383] A subsidiary of the Kremlin-controlled Gazprom funded an investment company that partnered with DST Global, an investment firm part of Mail.ru, to buy shares in Facebook, reaping millions when the social media giant went public in 2012. Four days after the Facebook IPO, a DST Global subsidiary sold more than 27 million shares of Facebook for roughly $1 billion.[384]
Impact
Facebook on the ad:tech 2010
Media impact
In April 2011, Facebook launched a new portal for marketers and creative agencies to help them develop brand promotions on Facebook.[385] 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.[386] News and media outlets such as The Washington Post,[387] Financial Times[388] and ABC News[389] have used aggregated Facebook fan data to create various infographics and charts to accompany their articles. In 2012, beauty pageant Miss Sri Lanka Online was run exclusively using Facebook.[390]
Economic impact
Facebook, Inc. has utilized growing internet markets using a social media platform to expand its user base while generating billions of dollars in revenue from Facebook's companies. Through empirical findings, economists have been able to identify key areas where Facebook has been able to stimulate economic activity by offering a free public good in that one user will not reduce the amount available to another, while also generating positive externalities. Thus, mobile phone manufactures and carriers have been beneficiaries of Facebook's spillover effect. Three distinct areas have been found to add the most economic impact: platform competition, the marketing place, and user behavior data.[391]
Facebook's platform is efficient because it lowers barriers to entry and lowers costs for businesses to rapidly innovate new ideas. Scalability is accomplished with less wasted resources and monetized by collecting user behavior and usage data for targeted advertising. Facebook advertising allows firms to reasonably scale up operations to reach Facebook users. Facebook's daily active users have increased 18% year-over-year[392] and burgeoning from 1 million users in 2004, to over 1.9 billion in 2017. Facebook is a leader among tech companies who continues to improve their carbon impact through more efficient data centers and clean renewable energy.[393]
By the end of 2016, Facebook's total revenue earnings were $27.638 billion, gross profit was $23.849 billion and a net income for the year was $10.188 billion.[394]
Facebook provides a development platform for many social gaming, communication, feedback, review, and other applications related to online activities. This open platform of Facebook has spawned many new businesses and added thousands of jobs to the economy. Zynga Inc., a leading company in social gaming app development, is an example of those businesses. An econometric analysis studied the impact of Facebook on the economy in terms of the number of jobs created and the economic value of those jobs. The conservative estimate was that the app development platform of Facebook added more than 182,000 jobs in the U.S. economy in 2011. The total economic value of the added employment was about $12 billion.[395]
Facebook companies
Facebook, Inc.[396]
Facebook Payments, Inc.
Atlas
Instagram LLC
Onavo
Moves
Oculus
WhatsApp, Inc.
Masquerade
CrowdTangle
Social impact
Main articles: Social networking service § Social impact, Social impact of the Internet § Social networking and entertainment, and Social capital
Facebook has affected the social life and activity of people in various ways. Facebook allows people using computers or mobile phones 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 has reunited lost family members and friends.[397][398] It allows users to trade ideas, stay informed with local or global developments, and unite people with common interests and/or beliefs through open, closed and private groups and other pages.[399][400]
Facebook's social impact has also changed how people communicate. Rather than having to reply to others through email, Facebook allows users to broadcast or share content to others, and thereby to engage others or be engaged with others' posts.[401]
Facebook has been successful and more socially impactful than many other social media sites. David Kirkpatrick, technology journalist and author of The Facebook Effect, believes that Facebook is structured in a way that is not easily replaceable. He challenges users to consider how difficult it would be to move all the relationships and photos to an alternative. Facebook has let people participate in an atmosphere with the "over the backyard fence quality" of a small town, despite the move to larger cities.[402] As per Pew Research Center survey, 44 percent of the overall population gets news through Facebook.[403]