Facebook 2013 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2013 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 96

  • 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

5
PART I
Item 1. Business
Overview
Our mission is to give people the power to share and make the world more open and connected.
We build technology to enable faster, easier and richer communication. Hundreds of millions of people use Facebook's websites
and mobile applications every day to stay connected with their friends and family, to discover and learn what is going on in the world
around them, and to share and express what matters to them to the people they care about.
Our business focuses on creating value for users, marketers, and developers.
How We Create Value for People Who Use Facebook
Our top priority is to build useful and engaging products that enable people to:
• Connect and Share with Friends. With more than 1.2 billion monthly active users (MAUs) worldwide, Facebook users
are able to find and stay connected with their friends, family, and colleagues on Facebook.
• Discover and Learn. We believe that people come to Facebook to discover and learn more about what is going on in the
world around them, particularly in the lives of their friends and family and with public figures and organizations that
interest them. Each person's experience on Facebook is unique based on the content shared by his or her friends and
connections.
• Express Yourself. We enable people to share their opinions, ideas, photos and videos, and activities with audiences ranging
from their closest friends to the public at large, giving everyone a voice within the Facebook community. Through
Facebook's privacy and sharing settings, people can control what they share and with whom they share it.
• Stay Connected Everywhere. People can access Facebook through our website, mobile sites, smartphone applications,
and feature phone products. Through mobile and web applications built by developers that integrate with Facebook, people
can interact with their Facebook friends while playing games, listening to music, watching movies, reading news, and
engaging in other activities across the web and on mobile devices.
We had 757 million daily active users (DAUs) on average in December 2013, an increase of 22% compared to December 2012.
We had 556 million DAUs who accessed Facebook from a mobile device on average in December 2013, an increase of 49% compared
to December 2012.
\How We Create Value for Marketers
Facebook focuses on providing value for all kinds of marketers, including brand marketers, direct marketers, small and medium-
sized businesses, and developers. We help marketers achieve their business objectives, such as increasing online sales, in-store sales,
or awareness of their brands, products, or services. We generate the substantial majority of our revenue from selling advertising
placements to marketers.
We offer marketers the following benefits:
• Targeted Reach. With over 1.2 billion MAUs using our service every month, Facebook offers marketers the ability to
reach their existing and prospective customers. Marketers can target their ads to people on Facebook based on demographic
factors such as age, location, gender, education, and specific interests that users have chosen to share with us. In addition,
marketers may choose to match their own data or third-party data with ours, so they can find existing customers or potential
new ones directly on Facebook. We also offer marketers the ability to include social context with their marketing messages.
Social context is information that highlights a friend's connections with a particular brand or business, and we believe
that social context improves ad effectiveness.
• Engagement. We offer marketers access to one of the most highly engaged consumer networks in the world. According
to eMarketer, in 2013, people spent more time with digital media than watching TV for the first time. We believe marketing
dollars will follow this shift in consumer time, and we offer marketers a place to shift their spend given our large and
highly engaged audience.
• Facebook Ads. Our ads offer marketers the opportunity to communicate their messages to consumers and to direct them
to specific destinations such as a web page or a Facebook Page. Marketers purchase ads that can appear in multiple
locations including in the right-hand side of most page types on personal computers and in the News Feed on personal