Facebook 2013 Annual Report Download - page 9

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is a regularly updating list of stories from friends, Pages, and other entities to which the person is connected. It
includes posts, photos, event updates, group memberships, application updates, and other activities. Each person's
News Feed is personalized based on his or her interests and the sharing activity of his or her friends and connections.
Stories in each person's News Feed are prioritized based on several factors, including how many friends have
Liked or Commented on a certain piece of content, who posted the content, and what type of content it is.
- Timeline. Timeline allows people to organize and display the events and activities that matter most to them,
enabling them to curate their memories in a searchable personal narrative that is organized chronologically. People
choose what information to share on their Timeline, such as their interests, photos, education, work history,
relationship status, and contact information, and people can control with whom content is shared on their Timeline.
- Graph Search. Graph Search is a structured search tool that enables people to find people, places, photos and
other information shared with them on Facebook. People can search using simple phrases such as "Photos of my
friends in New York" or "Restaurants in London that my friends have been to," and browse the results. Once
turned on, Graph Search replaces the search bar at the top of every page on Facebook. Graph Search beta is
available on the web for people using the site in English, and we are planning to expand Graph Search to mobile
and international audiences in the future.
• Messenger. Messenger is a mobile-to-mobile messaging application available on iOS and Android phones. Messenger
works similarly to texting (SMS) to let people reach others instantly.
• Instagram. Instagram is a mobile app and website that enable people to take photos or videos, customize them with filter
effects, and share them with friends and followers in a photo feed or send them directly to friends.
Our Strategy
We are in the early stages of pursuing our mission to make the world more open and connected. We believe we have a significant
opportunity to further enhance the value we deliver to users, developers, and marketers. Key elements of our strategy are:
• Expand Our Global Community. There are more than 1.5 billion internet users on personal computers, and more than
three billion mobile users worldwide according to GSMA Wireless Intelligence, and we aspire to someday connect all of
these people. As of December 31, 2013, we had 1.23 billion MAUs globally. We intend to increase the size of our network
by continuing our marketing and user acquisition efforts, enhancing our products including mobile applications, and
making Facebook more easily accessible to people throughout the world. We are focused on increasing the number of
people using Facebook across all geographies, including relatively less-developed markets. Our investments include
efforts to make Facebook accessible on feature phones, reducing the amount of data required to utilize our service, and
investing in increasing the number of people who have access to the internet including through industry partnerships such
as Internet.org.
• Develop Great Social Products to Increase Engagement. We prioritize product development investments that we believe
will drive user engagement. We continue to invest significantly in improving our existing products such as News Feed,
Timeline, and Graph Search and our stand-alone mobile applications such as Messenger and Instagram. For example, we
are continually improving our ability to analyze and organize vast amounts of information in real time to enable us to
select the unique content that we believe will be most interesting to show to each user. We are also focused on developing
new products, including new stand-alone applications, to increase engagement. Increasing user engagement is a core part
of our strategy to maximize our long-term business performance and therefore we are willing to sacrifice short-term
monetization in order to increase engagement.
• Increase the Utility of our Service and Provide the Most Compelling User Experience. We aim to maximize the utility
we create for people using our service. We are investing significantly in improving our products and developing new
products, including new stand-alone applications, in order to create more value and make the Facebook experience more
useful. We also enable developers to integrate their mobile and web applications with Facebook in order to increase utility
for our users.
• Improve Our Ad Products. We are investing to improve our ad products in order to attract more marketers to work with
Facebook, to create more value for marketers, and to enhance marketers' ability to make their advertising more relevant
for users. Our advertising strategy centers on the belief that ad products that are relevant, well-targeted, social, and well-
integrated with other content on Facebook can enhance the user experience while providing an attractive return for
marketers. We intend to invest in additional products for marketers while continuing to balance our monetization objectives
with our commitment to optimizing the user experience. We will continue to work to develop new tools that help marketers
to target their ads most effectively and thereby increase their return on ad spend. We also continue to focus on analytics