Facebook 2012 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2012 Facebook annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

than one billion users. More than 10 million apps and websites were integrated with Facebook as of
December 31, 2012. We are focused on providing Platform developers with unique opportunities to increase their
growth, engagement, and monetization, while offering users new ways to connect with their friends through
things like games, music, fitness and video apps.
Facebook offers tools and APIs that enable developers to increase growth, engagement and monetization.
•Growth. We enable Platform developers to reach our global user base and use our distribution channels
like News Feed and App Center to increase traffic to their apps and websites.
•Engagement. We enable Platform developers to create better products that are personalized and social
and that offer new ways for our users to engage with friends and share experiences across mobile
devices and on the web.
•Monetization. We provide an online payments infrastructure that enables Platform developers to
receive payments from our users in an easy-to-use, secure, and trusted environment. In 2012, our
Platform developers received more than $1.96 billion from transactions enabled by our Payments
infrastructure.
Key elements of the Facebook Platform include:
•Open Graph. Our underlying Platform is a set of APIs that developers can use to build apps and
websites that enable users to share their activities with friends on Facebook. As Open Graph connected
apps and websites become an important part of how users express themselves, activities such as the
books people are reading, the movies people want to watch and the songs they are listening to are more
prominently displayed throughout Facebook’s Timeline and News Feed. This enables developer apps
and websites to become a key part of the Facebook experience for users and can increase growth and
engagement for developers.
•Social Plugins. Social plugins, such as the Like button, are social features that developers can easily
integrate with their websites by incorporating a few lines of HTML code. Social Plugins enable
developers to provide engaging and personalized social experiences to their users.
•Payments. Facebook provides an online payments infrastructure that enables developers to receive
payments from users through an efficient and secure system. Our Payments infrastructure enables users
on personal computers to purchase virtual or digital goods from developers and third-party websites by
using debit and credit cards, PayPal, mobile phone payments, gift cards or other methods. Currently,
substantially all of our Payments revenue is from users’ purchases of virtual goods used in social
games. We receive a fee of up to 30% when users make such purchases from our Platform developers
using our Payments infrastructure.Mobile applications integrated with our Platform do not utilize our
Payments infrastructure.
How We Create Value for Marketers
We focus on providing value for all kinds of marketers, including brand marketers, direct marketers, small
and medium-sized businesses, and developers by offering a unique combination of reach, relevance, social
context, and engagement:
•Reach. With over one billion MAUs, Facebook offers marketers the ability to reach a vast consumer
audience.
•Relevance. Marketers can target users on Facebook based on demographic factors such as age,
location, gender, education, work history, and specific interests that users have chosen to share with us
on Facebook. In addition, marketers may choose to match their own data or third-party data with ours,
so they can find their customers – or those who look like them – directly on Facebook. We believe that
users have a better experience when ads are effectively tailored and, therefore, more relevant to them.
7